Street Capital has effectively doubled its percentage share of broker originations in the first quarter compared to a year earlier.
“The company doubled its percentage share of mortgages underwritten through the Canadian mortgage broker channel to more than 8 per cent in the first quarter of 2012 over the first quarter of 2011,” reads a press release from the lender’s parent company Counsel Corporation, citing an industry report. It “was ranked third in mortgage broker market share in terms of funded volume for the quarter ended March 31, 2012.”
The company, in fact, sold $1.4 billion of mortgages in the first quarter of 2012
The growth reflects brokers’ growing use of mono-lines during the first three months of the year and the ramp-up in rate competition with the banks – something that also managed to grow broker originations.
Street is actively looking to continue that growth spurt, expanding to alternative lending at a time when the industry as a whole is seeing a shift in the number of those deals. The move reflects increasingly tight underwriting standards at A lenders, a trend expected to continue with the introduction of OSFI lending guidelines expected as early as June.
Street President Paul Grewal explained the lender’s decision to go where that new business is expected to emerge.
"Canadians can benefit from more options and choices to resolve barriers to home ownership,” he said, in announcing the lender’s Street Options Program last month. “The Street Options Program will target the near prime segment of the mortgage market by introducing unique lending solutions and relying on a common sense approach to lending practices.”
The program, which started with a select group of Ontario brokers, is focused on serving “Canadians who are unable to find financing through traditional sources with solutions to home ownership.”