West Allis Savings Bank is creating a lending subsidiary geared to borrowers with credit problems.
The new unit, Major Finance, will offer mortgage loans for homeowners with high debts, low credit ratings, or histories including bankruptcy or job loss. The loans will be originated by Major Finance and sold to investors in the secondary mortgage market.
James D. Smessaert, president and chief executive officer of West Allis Savings, said last week that the new unit will boost fee income as it sells loans that do not meet the requirements of Fannie Mae and Freddie Mac on the on the secondary market.
After 24 to 36 months, the savings banks would offer borrowers an opportunity to qualify for a conventional mortgage loan.