Most prefer to call it alternative lending, but Street Capital is calling it “near prime” in announcing it will formally enter that increasingly active segment of the market.
"Canadians can benefit from more options and choices to resolve barriers to home ownership,” said Street President Paul Grewal, in announcing the lender’s Street Options Program. "Each deal will be assessed individually, although brokers in the program have been handed guidelines to work with.
"More generally, we have a maximum loan to value of 80 per cent and a minimum Beacon score of 540."
Trod out Tuesday, the program will start with a select group of Ontario brokers and service “Canadians who are unable to find financing through traditional sources with solutions to home ownership,” according to a Street press release.
The lender has also opted for a staggered phase-in, meaning Options will ultimately be made available to selected brokers in markets across the country.
“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,” reads the announcement.
Owner-occupied residential deals, including BFS, are the program's focus, Grewal told MortgageBrokerNews.ca
Brokers will be supported by dedicated senior underwriters and both a credit manager and a regional VP of sales.
Street had announced earlier this year that it would move away from BFS lending. The Options program effectively re-opens that channel for participating brokers.
It's also worth noting, said Grewal, that mortgages under the new Street Options program are uninsured.
Earlier this month, Street's parent company, Counsel Corporation, highlighted the mono-line’s near-30 per cent jump in revenue for Q4 over the previous three-month period.
Street, in fact, sold $3.7 billion of its mortgages to institutional investors last year. It had sold $2.86 billion in its previous fiscal year, from November 1, 2009, to October 31, 2010.