Nick Kyprianou, former President of Home Trust, has turned up as a white knight on a grey horse. Grey Horse Corporation that is.
The company has hired Kyprianou to head up its new mortgage lending business.
Grey Horse says its subsidiary, Equity Transfer & Trust Company (ETT), is applying to become a new deposit-taking lender and will distribute its mortgages through mortgage brokers.
Most in the industry know Nick for building his former baby, Home Trust, from a small regional player into a successful national lender. Nick worked there for 17 years, having left just eight weeks ago.
In a statement, Nick said, “I am delighted to be joining Grey Horse at this juncture in its evolution and am committed to this strategic initiative. Having watched Grey Horse’s progress over the years, I am impressed with its management team and growth prospects, and confidently invest my own personal capital in the Corporation’s future.”
Nick has reportedly invested $1 million of his own money in Grey Horse, via a private placement.
The firm’s main business at the moment is that of a transfer agent. It’s making good money doing it. The company has been profitable 19 quarters straight.
Regarding it’s target mortgage customer, Grey Horse says: “ETT plans to focus on alternative residential mortgages, a segment which represents 10% of the total mortgage market and is underserved by major financial institutions yet provides a tremendous opportunity for top and bottom line growth. Alternative residential mortgages are loans to borrowers who do not conform to major banks’ standards of creditworthiness. Such mortgages are typically granted to self-employed business people, immigrants and borrowers with imperfect credit histories, and are often more profitable than insured mortgages.”
Grey Horse stock (Ticker: GHC on the TSX) popped 15.7% on this news yesterday, to $6.19.
Congratulations to Nick. Hopefully they go higher than 80% LTV!
This is awesome news. We so need another subprime lender.
My dream product (in case their development team is watching):
1-3 year term
Stated income
Interest only
For self employed
90% loan to value
No NOAs
20% annual prepayments any time (not just once a year)
I could sell $15 million a year of this product.
Ed: and my dream product is a self build, Noah’s Ark in a box that you can pick up at Home Depot and build before the subprime market creates a Canadian Housing Armageddon like it did in the U.S.. You sell 15M of that kind of subprime product today and I could sell 150M D.I.Y. Noah Ark’s build kits because that is where all the NINJA buyers would end up living.
Wake up people!
thanks for the laugh ivory tower
happy friday
Good luck to Nick and his new team. His track record speaks for itself and I’m sure this new lender will be wildly successful.
I’d bet my license that ETT will NOT be lending to anything remotely resembling a NINJA borrower.
Mr. Ivory Banker : Nowhere did I say the person would have no income, no job, or no assets.
What I proposed is a legitimate product for self-employed people with equity, A JOB, assets, and income.
If you weren’t so bent on wisecracks you’d realize that there are lots of ways to tell if a stated borrower really makes what they say they make.
Hardly a white knight!!
Nick had to leave because he was ******* *** ******* Director of HR!
Apparently they both had to leave. *** **** *** ******** *** **** *** *** **** *** *******.
Can you say conflict of interest?
** *** ******* ***** **** ********.
Good for Gerry for getting rid of him!
[Edited. Speculation on someone’s personal life is not what we do here. Nor is slandering someone’s name without a scrap of evidence. Please be very careful. Future posts that violate CMT’s terms may be deleted in whole.]