Major lender applies for banking license

Major lender applies for banking license

Major lender applies for banking license One of the broker network’s main lenders is applying to the Minister of Finance for a Schedule I bank charter.

Home Trust has applied for the same designation used by the big banks and – if the move proceeds -- will be named Home Trust Bank.

"The main purpose of applying for the bank charter right now is to help us grow and diversify our deposit base," said Gerald M. Soloway, CEO of Home Trust and Home Capital in an official release. "We have been very successful with our Oaken Financial branded deposit products and the bank would support and carry that initiative forward."

According to the release, Home Trust will continue to rely largely on broker relationships for its funding. The move will enter the review stage once the notice period is over.

“Once the official notice period is over, the Office of the Superintendent of Financial Institutions (OSFI) will review the application and make a recommendation to the Minister of Finance,” the official release states. “The receipt by OSFI of an application is not an indication that the application will be successful.”

Home Trust scored a respectable 3.79 out of a possible 5 in CMP’s most recent Brokers on Lenders survey.

Home Trust is the best lender for sure,” one broker wrote in the survey. “Their underwriters are trained to help brokers to close the deals while other underwriters (at other lenders) are trying to find reasons to decline deals.”

Home Trust scored 3.92/5 in the underwriter support category this year.
7 Comments
  • Ronald Caissie 2014-11-11 11:59:26 AM
    Could we be losing another sub lender
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  • Ron Butler 2014-11-11 12:05:11 PM
    I think this is a opportunity to comment on the incredible success and achievements of Gerry Soloway. Many years ago in Hamilton ON, Gerry started with a small group of mortgage investors, morphed into a Savings and Loan, then a Trust and now in his crowning achievement the conversion to a Schedule 1 Bank.

    Over that whole history of growth, Gerry was constantly told that starting from effectively zero, no one could ever build a Trust company and that the idea of running a bank was sheer foolishness. Banks were the domain of a patrician group of the Canadian business elite, CEOs were carefully selected from a small cadre of very similar looking and acting men steeped in their corporate culture and vetted by the bank boards who represented the old guard of the Canadian Establishment and there was no place for someone who's dream was to create a major financial institution simply from an idea of lending and deposit taking WITHOUT branches (Gerry's was a virtual financial institution before anyone knew what virtual was).

    I have always believed that the greatest thing in business is to create something from nothing. With the help of a great team Gerry Soloway has built what is soon to be a Schedule 1 Bank from a vision of new financial processes decades ago in Hamilton before fax machines, before computers, before the internet.

    Most importantly, from Day One; Home ALWAYS supported mortgage brokers and deposit brokers. Today Home Trust sends tens of millions in finders fees to mortgage brokers every month for mortgages that our other lenders have turned down.

    Congratulations to a Canadian business giant who proved that through intelligence, focus, relentless hard work and absolute belief in his own vision that you can accomplish anything.
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  • AM 2014-11-11 12:26:04 PM
    Well said Ron!
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