Delta Financial Corp. is teaming up with MCAP Mortgage Corp. and MCAP Service Corp. to originate, underwrite, and service nonconforming mortgage loans in Canada.
Bank of Montreal and Mutual Life Assurance Company of Canada each hold 40% of MCAP Mortgage and MCAP Service Corp.
MCAP Mortgage Corp. will originate nonconforming mortgages through its network of brokers, and all loans will be underwritten by Delta, the companies said.
Approved loans are to be funded by Delta and serviced by MCAP Service Corp. Delta, meanwhile, plans to securitize and sell the loans in Canada and retain the residual interest. Delta's operations in Canada will be conducted through a subsidiary, DFC Funding of Canada Ltd.