Reliant Financial Services, Inc. (RFNS.OB) and its subsidiaries carry on a mortgage banking business in Canada. The company focuses on originating, financing, securing, servicing and marketing non-prime mortgages secured by residential real estate. Reliant utilizes both independent brokers and a direct sales force. The company’s wholesale channel also originates non-prime mortgages through relationships with local financial institutions and businesses that restrict their activities to brokering mortgage loans.
Reliant was founded in 2005. Their original plan was to break down the barriers of mortgage financing for less than-prime consumers in the Canadian Market. With challenges such as the 2007 US sub-prime market meltdown; the market has proven once again that when the US market adjusts, numerous markets around the world are affected. Affects of the US meltdown showed true for Reliant’s Canadian subsidiary’s plan to launch fully in 2007. The adverse secondary mortgage asset backed market conditions have allowed for very slow progress. The management of Reliant intends to take a slow and measured approach with the aim to adjust their product suite, which will allow their Mortgages to be attractive to the Mortgage Asset Backed capital markets.
Reliant will also work toward ensuring their mortgage products are profitable for the Mortgage Asset Backed capital markets by enhancing underwritings. Reliant is currently one of the few less than prime lenders with the capability to offer an insured less-than-prime product to the mortgage asset backed capital market. This will be complimented with a fully web based mortgage adjudication system.
Reliant is actively seeking new capital partners. As part of their new approach, the product line will also include an insured Prime and Alt A product that is interest priced for the Canadian Market.
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