Independent Realty Capital Corp. of Anaheim Calif., is boosting its commitment to second mortgages, home equity lines of credit, and high-loan-to-value loans through a newly opened specialty products division.
"This is a diversification effort," said Phillip N. McCall, the company's president and chief operating officer, in an interview Monday. "We've all been riding this refi wave, but as it ends we want to make sure we spread out and handle different sides of the business."
The new division expects to close 75 loans a month, or $4 million to $5 million in originations, Mr. McCall said. The company has been originating $150 million in a typical month.
Independent, primarily a retail lender, has more than 70 branches nationwide. About 65% of its originations have been conventional "A" paper loans, and 35% have been alternative-documentation loans or subprime loans.
Mr. McCall said the company is working on a "paperless" loan process for the new division. Loans submitted by Independent's branch network will be approved electronically by the division, and loan documents will be sent electronically to the branch, where loan officers will print out the borrower's closing documents.
