TD Bank drives growth with portfolio-based lending
Fans of 'how things used to be' are paying attention to TD Bank, the U.S. unit of Canada's Toronto-Dominion Bank (TD). The largely East Coast bank has been pushing mortgage lending through its retail channel -- and holding that debt on its books, whereas most U.S. banks are selling their mortgages off to Fannie, Freddie or the FHA.
Per Bloomberg, which has the story:
Toronto-Dominion, Canada’s second-largest bank, made about $8 billion of home loans in the past 12 months through its U.S. unit, known as TD Bank, according to Malcolm Hollensteiner, the division’s director of retail lending sales and production. It retained almost all of that debt, more in keeping with Canadian practices, and in contrast to most U.S. banks, which usually package their originations into government-backed securities.
U.S. regulators and lawmakers want to draw more private capital into the $9.3 trillion market after the fallout from the housing crash left taxpayer-backed programs financing about 85 percent of new loans. TD Bank, which operates on the East Coast, where it’s open seven days a week and late into the evening, is among lenders flush with deposits that are chipping away at the government’s share. The bank plans to hire 140 loan officers to more than double staff and bolster originations as higher interest rates choke off refinancing, Hollensteiner said.