FirstCity Capital Corp., the capital markets subsidiary of FirstCity Financial Corp., announced last week that it is seeking a new financial partner to execute its proven long-term business plan of pursuing the home equity business.
Formed just two years ago to meet the growing demand by originators of home-equity loans for consistent and predictable underwriting and funding practices, the Valhalla, N.Y.-based company originated $147 million of home-equity loans during the first half of this year.
Since its inception in August 1997, FirstCity Capital has originated or acquired more than $500 million of home equity loans and completed two securitizations totaling more than $320 million of asset-backed securities.
"We are pleased to have sold transactions in both strong and difficult markets, and to have built a track record for dependability and reliability that is the hallmark of our business," said Christopher Morrissey, FirstCity Capital's President and Chief Operating Officer. "As we seek a new financial partner, we plan to continue our methodical and sound program of working fairly and consistently with our origination partners and delivering a quality product to ABS investors."
FirstCity Capital plans to selectively bring the servicing of newly originated loans in-house during the beginning of the fourth quarter. In addition, the company acquired HomeFirst National, a St. Louis area direct-to-customer retail mortgage banking company, in March.