The good times continue to roll for alternative lenders, with Home Trust reporting $1.67 billion in originations for the second quarter as tighter rules for A-lenders kicked in.
“The company is experiencing strong demand for its traditional product offerings combined with high credit quality,” according to second quarter financials released this week. “This continues to enhance profitability.”
That $1.67 billion in originations represents a $370 million rise from the same three-month period in 2011.
Orginations in the first quarter of this year were also lower at $1.19 billion in originations, making the total for six months $2.85 billion.
“Origination volumes and weightings continue to reflect the company's strategy to increase focus on originations of higher yielding traditional mortgages” writes Home Trust.
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.
Still, much of Home Trust’s growth in Q2 actually came from shifting prime, insured product.
It could account for even more in the future.
“Accelerator (insured) mortgage originations increased to $221.1 million in the second quarter from $172.4 million in the second quarter of 2011,” according to Home Trust. “The company continues to pursue opportunities that may lead to future growth in this product segment in 2012.”
That focus is on looking for ways to move those securitized loans off balance sheet.