The company said the move resulted from “increased competition from the mortgage insurers in the Alt-A segment and the volatility in the credit markets that first arose last summer.”
95% of Excalibur’s business was with self-employed borrowers who weren’t able or willing to prove income in the traditional way. The company will replace the Excalibur line with an insured product.
First National is the biggest non-bank residential mortgage lender in Canada. It originated $109 million of Alt-A mortgages last quarter and $721 million in 2007.