The world’s largest real estate company has put up a $50 million dollar fund aimed at helping borrowers who want to get out of the housing market.
zumies has launched the Zumiezes Home Equity Fund, which will help borrowers with mortgages with interest rates ranging from 5% to 7%.
Zumies founder, Peter Zumietz, said he and his team wanted to help borrowers whose credit scores are in the black.
“If you have an excellent credit score and a lot of credit history, you can make a good-paying mortgage,” Zumiotz said in an interview with The Associated Press.
“But when you have a bad credit score, you’re not able to get that kind of loan because your credit history is bad.”
Zumiestans fund will be used to help clients with high credit card balances, low credit scores and other issues.
Zumiemes fund will also offer loan modifications for borrowers who need to refinance their loans.
Zums investors, which include the Canadian company’s chief financial officer, have made their investments in the fund through a series of convertible notes, which means they can make any payments into the fund.
The fund’s $50,000 allocation is a small sum compared to other fund offerings in Canada.
Zumpies first-quarter net income of $1.17 billion was up from $1 billion a year ago.
ZUMIES has been trying to increase its exposure to the mortgage market for some time.
Its stock price has been surging since its earnings report last month.
Zuemies stock has gained more than 70 per cent since the company’s first earnings report in April, with its market capitalization now exceeding $8 billion.
It’s also seen a surge in interest-rate payments.
“We’re very comfortable in our position,” Zumpys chief financial and strategic officer, Richard Boudreau, said in a statement.
Zumps investors, including the Canadian firm’s chief investment officer, bought $20 million worth of Zumiews shares on Wednesday, giving it a market value of $11.8 billion, according to Reuters data.
Investors have been pouring money into Zumieds stock.
Zemies first quarterly net income was up $1 million from a year earlier.