Risk Mitigation Profile
Management of EquityLine MIC believes the key to the Corporation’s success is its risk mitigation strategy. The Corporation’s risk mitigation strategy differs from the strategy adopted by a majority of other MICs.
Many MICs operate on the fringe of the mortgage lending markets. They focus on 2nd and 3rd mortgages from individuals with soft or distressed credit. These MICs leverage this fringe credit profile to charge high interest rates that mitigate a default/arrears ratio that averages approximately 1.9 percent.
EquityLine’s model is focussed on lower risk mortgages. That allows us to target an average default ratio of 0.5% to 0.75%. This is achieved through a unique, well defined and strictly adhered to set of investment criteria.