Equitable Bank exec talks lender’s bumper Q2 earnings

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“And so it gives us confidence that there is a floor to house prices that in terms of our credit outlook sets us up for a better position. Affordability will continue to be a challenge, but we know that house prices have bottomed out and so there is a hedge there in terms of credit.”

The bank has been bolstered by a diversified funding stack, she added, that’s seen the addition of wholesale options such as covered bonds – helping the loan book yield grow faster than the cost of funds and contribute to wider margins.

Mortgage brokers a key part of company’s growth plans

Equitable only issues alternative-A mortgages through the mortgage broker channel, a factor that makes the broker community “critical” to its business, according to Poddar.

“We continue to believe that the best way in this country to get a mortgage is through a mortgage broker,” she said. “We’ve seen massive increases in market share originations through brokers and believe that’s the right thing for the consumer, especially when you consider challenges like affordability and the complexity, especially of a first-time home, purchase.”

Indeed, the company is doubling down on its conviction in brokers as the best distribution channel, Poddar said, implementing new technology to improve documentation exchange with brokers and putting in place a new loan origination platform to streamline service, turnaround times, and integration with their chosen platforms.

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