Specialty finance company First Fidelity Financial Corp. is the latest company to announce its entry into high loan-to-value lending.
The Columbia, Md., subprime lender is using direct mail and telemarketing to sell owners loans for up to 125% of the value of their homes.
First Fidelity debuted the loan in July, and the product is now accounting for more than half its production, the company said. In September, First Fidelity's total loan volume was about $10 million.
First Fidelity is mailing 500,000 loan solicitations per month, and calling more than 40,000 households per day to offer the high LTV product.