Optimum sees big growth in alt mortgages
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10/03/2010 8:00:00 AM
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Optimum Mortgage, part of Canadian Western Bank, saw a 26 per cent increase in alternative mortgage business over the past year, according to its first quarter financial report.
The lender said its portfolio of alternative mortgages has reached $615 million with 10 per cent growth over the last quarter. It also highlighted the success of its new high ratio insured mortgage program.
"Optimum's newly established offering of higher ratio mortgages insured by either the CMHC or Genworth Financial Canada showed positive results and management expects insured mortgages will continue to become a larger component of this portfolio over time," the report said, adding the bank remains "well secured" to carry its uninsured mortgages, which represent 73 per cent of its total portfolio. "Management remains committed to grow this business over time as it continues to produce strong returns while maintaining an acceptable risk profile."
Canadian Western Bank saw a record net income of $40 million in the first quarter of 2010, a 56 per cent increase over last year. The company also announced the acquisition of the National Leasing Group on Feb. 1.