Reliant Financial Service Corp. (RFNS)

[di4]

Jotting a few notes.
Steve Hamilton Inteviewed by Saul Albom
Housing market is fertile in Canade last 5-7 years
They are now entering market
They've done their research.
They have a good structure for operations.
What they have done thats attractive:
mortgages booked are self insured so their losses are covered and also they have a strong reinsurer which is a strong feature to protect against forclosure.
The problems with America subprime, they are self insured.
Built another insurance into program- Job loss. Covers 6 month interest payments in the event of job loss. There are some qualification requirements for this. Works also for Self Employed, contractors, etc.
That is one of the biggest reasons people don't make payments... job loss. That and marriage issues.
They have their angles covered.
Strong set of underwriting guidelines mean quality.
They are very competitive. 55 year ammortization- one in North America. Saul is impressed and comments he's only heard of 30 years.
This allows individuals to keep payments manageable. They have done their homework. They were careful in set-up. Another trouble in america is the lenders in the US using variable rates- they are volatile and dangerous. Their rates are fixed. (could someone explain what he meant by renegoting fixed rate every 3-5 years and having to reapply for a mortgage, I was confused by this)
Housing market in Canada is stable. Increase in Canada market. Things are progressing. There are a few other subprime lenders in Canada since that market is developing. The feels they are the best since they spent 2 years planning and have such good programs. They just launched April 1st and and just closing their first mortgage pool. They are getting strong support and progressing at a good pace.