Alternative lender Equity Financial is selling its transfer agent business in an effort to deepen its pockets and better focus on a rapidly growing retail mortgage operation.
“We have made the strategic decision to move exclusively into the mortgage and deposit business and will now have the necessary capital to invest in and support our new business strategy,” said Paul G. Smith, president and CEO of the holding company. “Over the years we have built a strong and diversified company that has excelled in the transfer agent and corporate trust business and, more recently, entered the mortgage lending and deposit-taking business. This is a great day for Equity.”
The $64 million sale of the transfer agent and corporate trust business, including a team of 700 transfer agent clients, will better position Equity Financial to a claim a large slice of a growing alternative lending pie. It also means brokers will gain a stronger alternative to other institutional lenders in that space – something that should increase competition around rate and product offerings.
"Since starting in the mortgage and deposit business, Equity has demonstrated its expertise and superior ability to serve our mortgage broker partners and deposit dealers,” says CEO of Equity Financial Trust Nick Kyprianou. “This transaction allows us to make the necessary investments to leverage the infrastructure we have developed for continued growth.”
The agreement is subject to certain conditions, including Equity shareholder approval, which will be sought at the annual and special meeting of shareholders scheduled for late March or early April.