Verida Credit, a company set to specialise in mortgage lending, created by investment funds ABN Amro, Old Lane, and Rubikon Partners, will enter the market in two weeks and by September will have 9 products on offer.
"Our plan is to start with home equity loans and then expand our licence to housing loans, and by September we'll have an entire portfolio of mortgage products. Overall, we'll have nine products," states Carmen Retegan, CEO of Verida Credit.
Verida Credit will target individuals and sole traders, while loans will only be released in RON and euros.
"Our target is quite broad (...) Our loans only will be RON and euro-denominated ones, we won't grant any franc-denominated loans because they are too risky due to foreign exchange volatility and the fact that the population's incomes are not related to francs," explains Retegan.
This year, the company will only accept houses as collateral, but will include land as collateral in the coming years, depending on its prices. The company is now setting product costs, which Retegan says will be in line with the market average.
"Looking at the market, more or less all mortgage lending institutions have similar interest rates of 9.5-10% per annum. However, this is the level of interest before banks announced hikes, which I believe will revolve around 1-3%. We'll see how the market evolves and depending on this we'll set costs, which have to reflect the assumed risks," says Retegan.
She states Verida will not resort to client luring strategies such as a massive reduction in interests over a certain period.
To sell its products, Verida will employ financial consultants, but will also work with brokers. By late 2009, it will have 100 consultants, out of a total number of 150 employees. At the same time, Verida will open three subsidiaries this year, which includes one in Bucha
