Nick Kyprianou, former President of Home Trust, has turned up as a white knight on a grey horse. Grey Horse Corporation that is.
The company has hired Kyprianou to head up its new mortgage lending business.
Grey Horse says its subsidiary, Equity Transfer & Trust Company (ETT), is applying to become a new deposit-taking lender and will distribute its mortgages through mortgage brokers.
Most in the industry know Nick for building his former baby, Home Trust, from a small regional player into a successful national lender. Nick worked there for 17 years, having left just eight weeks ago.
In a statement, Nick said, "I am delighted to be joining Grey Horse at this juncture in its evolution and am committed to this strategic initiative. Having watched Grey Horse's progress over the years, I am impressed with its management team and growth prospects, and confidently invest my own personal capital in the Corporation's future."
Nick has reportedly invested $1 million of his own money in Grey Horse, via a private placement.
The firm’s main business at the moment is that of a transfer agent. It’s making good money doing it. The company has been profitable 19 quarters straight.
Regarding it’s target mortgage customer, Grey Horse says: “ETT plans to focus on alternative residential mortgages, a segment which represents 10% of the total mortgage market and is underserved by major financial institutions yet provides a tremendous opportunity for top and bottom line growth. Alternative residential mortgages are loans to borrowers who do not conform to major banks' standards of creditworthiness. Such mortgages are typically granted to self-employed business people, immigrants and borrowers with imperfect credit histories, and are often more profitable than insured mortgages.”
Grey Horse stock (Ticker: GHC on the TSX) popped 15.7% on this news yesterday, to $6.19.