Equitable Trust sees originations spike

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Equitable Trust experienced an originations rush in the second quarter,  with new single-family mortgages up 65 per cent over the same period last year.

The alternative lender is crediting brokers, at least in part, for the $183-million boost, calling the growth a reflection of its "relationship with its mortgage broker network."

Strong activity in real estate markets and changes in the competitive environment from a year ago are also part of the reason for the increased activity, writes Equitable in Q2 financials released Monday.

The lender’s mortgage principal for that same division stood at a record $2.5 billion on June 30, up 37 per cent from a year earlier.

The positive picture may only get brighter for all alternative lenders as borrowers grapple with an increasingly tight A-lending environment.

Earlier this month, MortgageBrokerNews.ca reported on Home Trust’s $1.67 billion in originations for the second quarter as tighter rules for A-lenders kicked in.

The impressive sum represents a $370 million rise from the same three-month period in 2011.

That business is only expected to grow with both OSFI’s new lending guidelines and tighter mortgage rules on insured mortgages likely to drive more borrowers to the alternative sphere.
 

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