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.”