"Alternative lending in many ways is storybook lending, where the story really matters"
Canadian alternative lenders need to perfect an approach that focuses more on the narrative surrounding the client than on the dry numbers involved, according to Lisa Abbatangelo, vice president of mortgage operations at Community Trust.
“Alternative lending in many ways is storybook lending, where the story really matters,” Abbatangelo said. “It’s an art, not a science.”
And like any story, it has to be backed by a firm foundation.
“It has to be paired with prudent residential mortgage underwriting standards,” Abbatangelo said. “It is a highly collaborative exercise and one that’s informed both externally by our regulators, by our brokers, by our customers’ needs, as well as internal sources, our product team, our credit risk team or servicing team, our compliance team.”
Such a meeting of minds is crucial in formulating the best possible solutions for Community Trust’s clients.
“It’s important that we hear from many different areas, both internally and externally, and then we strive to maintain a credit policy that ultimately can help Canadians become more financially successful and secure, which is our mission,” Abbatangelo said.
“It’s rewarding to know that we’ve got a credit policy that resonates with our broker partners and satisfies them and the demands that they’re really under to try to support their customers. It’s one of the most challenging tools to maintain, I’m not going to lie, especially in the alternative lending space.”
For more insights from Community Trust’s top officials, click here.
