Lender jumps into Alt-A lending

Lender jumps into Alt-A lending

Lender jumps into Alt-A lending

The lender, however, is quick to quell fears it is turning its back entirely on A-lending.

“It’s not like we’re getting out of the A-business; we still have a tremendous book of A-business, but what we’re looking at doing is just riding the proverbial storm out while trying to help other people in the market and we think it’s a niche in the marketplace that will help the brokers,” Poberznick explained. “We’re currently in the process of finishing up our risk analysis of the changes we want to do and understand we’re not going to go into this and start doing loans that are so high risk they’re going to jeopardize our positioning.

“We’re coming back into the Alt-A and the 65 per cent loan to value, the lower income qualifiers and stuff like that so we can fill that niche.”

The process will be slow and steady, but industry players will be able to reap the rewards as soon as first quarter 2014.

“We’re not jumping off a cliff to get in here; we’ll talk it on in pieces as we commit to it and we’re looking to open it up in the first quarter and grow it from there,” Poberznick said. “We’ll continually monitor it and we will find a spot where we’re happy in and we’ll ride it out.”
 

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8 Comments
  • Anthony C. 2014-01-10 9:25:18 AM
    Congradulations and best of luck with your product launch...

    Been waiting for more bank lenders to enter this space....the growing number of non-conforming consumer profiles is on the rise and capitalizing on this trend will make for big news in the months and years to come.

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  • Blair Anderson 2014-01-10 10:47:03 AM
    That's excellent news. Will the program be available Canada wide?
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  • Craig 2014-01-10 11:15:21 AM
    If we want more lenders to play in the space then we need to go back to 75% max for conventional and free up some equity space for others. Remember how effective Associates, benificial, Avco all were? There is a place for these companies.
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