What are Vecta Inc's Business Segments?
One- to Four-Family Residential Real Estate Lending. The focus of our lending
program has historically been the origination and retention in our portfolio
of one- to four-family residential real estate loans.
Because we have not historically sold any of the one- to four-family residential
real estate loans that we have originated, we have not originated these loans
in conformance with either Fannie Mae or Freddie Mac underwriting guidelines.
We may consider selling certain newly originated, longer-term (15 years or greater),
one- to four-family residential real estate loans, in an effort to generate
fee income and manage interest rate risk. It is expected that these loans will
be underwritten according to Freddie Mac guidelines, and we will refer to loans
that conform to such guidelines as “conforming loans.”
Commercial and Multi-Family Real Estate Lending. Consistent with our strategy
to expand our loan products and to enhance the yield and reduce the term to
maturity of our loan portfolio, we offer commercial and multi-family real estate
loans.
Generally, our commercial real estate and multi-family loans have terms of up
to 10 years and amortize for a period of up to 25 years. Interest rates may
be fixed or adjustable, and if adjustable then they are generally based on the
Prime rate of interest.
Almost all of our commercial and multi-family real estate loans are collateralized
by office buildings, mixed-use properties and multi-family real estate located
in our market area.
We consider a number of factors in originating commercial and multi-family real
estate loans, including non-owner occupied, one- to four-family residential
real estate loans. We evaluate the qualifications and financial condition of
the borrower, including credit history, profitability and expertise, as well
as the value and condition of the property securing the loan.
Home Equity Lines of Credit. We offer home equity lines of credit secured
by a first or second mortgage on residential property. Home equity lines of
credit are made with adjustable rates, and with combined loan-to-value ratios
of up to 80% on an owner-occupied principal residence.
Home equity lines of credit are generally underwritten using the same criteria
that we use to underwrite one- to four-family residential real estate loans.
Home equity lines of credit may be underwritten with a loan-to-value ratio of
up to 80% when combined with the principal balance of the existing first mortgage
loan.
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