Stocks of non-bank lenders are a great buy, so feels Phil Hardies of Dundee Securities. Non-traditional lenders like First National, Home Capital, and Equitable Group all stand to “benefit significantly,” he says, as competing institutional lenders cut their lending because of the credit crunch.
In a 102-page report Hardies states, “Non-bank lenders active in residential or commercial mortgages stand to gain through increased loan volume as an increasing number or borrowers are rejected by banks, and the relative loan pricing differential declines.”
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