Equities First Innovation Products & Services Prevent Risky Concentration of Assets

As it happened with several financial institutions during the Great Recession, Equities First applies innovation that ensures clients are not subjected to unnecessary investment risks and losses. The crisis saw various key banks coming to the ground with investors panicking and in some cases the institutions being seized by governments. For instance, the key causes of IndyMac (US Bank) failure were mainly attributed to its commercial strategy of originating & securitizing Alt-A loans on a big scale. The plan led to quick growth and excess accumulation of risky assets. In 2000, from its inception being a saving association, IndyMac developed into the seventh biggest saving & loan and ninth biggest originator of mortgage loans within United States. In 2006, the institution originated more than $90 billion of mortgages. Some of the factors that caused its demise after the 2007 mortgage market decline include its aggressive growth strategy, utilization of Alt-A among other non-traditional products, inadequate underwriting, concentrations of credit in residential real-estate within Florida and California markets states along Arizona and Nevada, the places the housing bubble was much pronounced and heavy dependence on pricy cash acquired from FHLB (Federal Home Loan Bank) and brokered deposits. However, with Equities First, the company is hyper-focused enabling the organization to work on deal-by-deal criteria in developing effective optional lending solutions for high net-worth people and businesses in need of non-purpose capital and more information click here.

As with IndyMac, the company established loans without proper verification of the borrowers’ assets or income including borrowers with bad credit histories. The appraisals taken by the institution on underlying security were also normally questionable. IndyMac gave loan products to its borrowers utilizing a wide array of unsafe option-adjustable-rate-mortgages (option ARMs), with loans given to numerous clients who did not afford to pay back. There are many clients who benefitted with Equities First stock loans where the collateral appreciates in value without having to undergo risky processes and learn more about Equities First.