Magazine article American Banker

Major Calif. Thrifts Training Big Guns on Home Equity Lending

Magazine article American Banker

Major Calif. Thrifts Training Big Guns on Home Equity Lending

Article excerpt

Several of California's largest thrifts are jumping into the arena of home equity lending.

Home Savings of America and California Federal Bank are among the thrifts that have recently turned to second mortgages as a filler for scarce home-loan refinancings and as a way to diversify their offerings. "It is generally reflective of the stress to get loans," said Ed Furash of Furash & Co., a Washington, D.C., consultant.

Home's move is substantial. The Irwindale-based subsidiary of H.F. Ahmanson & Co. is in the process of rolling out a nationwide home equity line-of-credit program, said a company official.

The program will add auto loans July 15. It is now originating only home equity loans, which generally have fixed rates and a limited borrowing span.

The bank has hired 14 employees to start up the consumer financing unit. Many of the new employees had worked at Household Finance.

"We estimate that in five years we will be a major consumer finance lender in the country," said Scott A. Norris, a Home Savings vice president. "God knows, we have the financial wherewithal."

Coast Federal Bank, Los Angeles; American Savings Bank, Irvine; and Glendale Federal Bank, Glendale, are also getting into home equity lending. California Federal, Los Angeles, has employed MBNA America Bank, a subsidiary of MBNA Corp. to handle its return to home equity lending. The Newark, Del., unit buys and services the second mortgages California Federal originates. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.