Lender jumps into Alt-A lending

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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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  • Anthony C. on 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.

  • Blair Anderson on 2014-01-10 10:47:03 AM

    That's excellent news. Will the program be available Canada wide?

  • Craig on 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.

  • Ted Flitton on 2014-01-16 8:57:41 AM

    Hello Blair,

    My name is Ted Flitton and I work in corporate communications at Bridgewater Bank. Sorry for the very late response to you question. Thanks for asking. We are reviewing how to proceed and will have more details later in the spring. Please stay with us. Let's keep in touch.

  • Blair Anderson on 2014-01-16 9:17:43 AM

    Thanks Ted. I will...I've already reached out to my BDM re a stated income applicaiton :-)

    FYI, the navigation on your website for finding my BDM could be a little better ;-) Thanks!

  • Anthony C. on 2014-01-16 10:04:03 AM

    Hello Mr. Flitton,

    It's Anthony Cirelli touching base...I commented on 10-01-2014 regarding the great news...

    Can you comment if your lending guidelines will be tiered to credit profile, and will they at all resemble Bridgewater's earlier lending matrix, as it was back in the early to mid 2000's with your Gold/Silver/Bronze credit programs...

    Also, when can we expect a roll-out of your new product offering to the Brokerage community...?

    Awaiting your reply...many thanks.

  • Ted Flitton on 2014-01-21 3:36:01 PM

    Hi Anthony,
    I didn't see your comment so I apologize for the delay in responding. In short, it will not be the same as our old product matrix for (Gold –Silver –Bronze). We will be looking at the property, where it is located and the customers’ credit situation. We are still fine tuning all of the parameters and will be looking to launch towards the end of first quarter. Thanks for your interest.

  • Kenshaw Jeanne on 2014-04-03 5:24:22 PM

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