Bank of Virginia is leveraging its mortgage market relationship with Fannie Mae and Ginnie Mae as it adds non-mortgage loan growth prospects to the list of products it plans to sell for securitization.
The bank has developed two low-risk programs designed to appeal to secondary market investors and enhance its “organic growth strategy.”
As of today, Bank of Virginia said it has committed to a $60 million participation in residential mortgage loans packaged primarily for sale to government sponsored enterprises, to which it is adding the purchase of a $23 million rehabilitated student loan portfolio backed by the federal government's guarantee.
While Bank of Virginia “remains focused” on core mortgage loan growth efforts across local Virginia markets, chairman and CEO of Bank of Virginia Jack Zoeller said these two initiatives will enhance “earnings, credit quality and portfolio diversity."
The goal is to be “opportunistic in leveraging” staff experience, the bank’s credit and lending team “to support our targeted growth of approximately $100 million in assets beginning in late 2012," he said.
The bank said it is trying to align with nationally recognized counter-parties in support of its programs.
For example, to pursue its residential mortgage market growth it is partnering with Stonegate Mortgage Corporation. At the same time the bank is partnering with GradCapital LLC, a financial advisor for universities and Xerox Education Services, a servicer of student loan portfolios.
