O.C. BUSINESS PLUS : HEARD ON THE BEAT / FINANCIAL SERVICES : O.C. Lenders Will Expand Into Internet With Sub-Prime Loans

Two Orange County lenders inked deals recently to expand their loan operations via the Internet.

Irvine-based BNC Mortgage Inc. said it has been selected by a unit of mortgage.com, a leading Web-based loan company, to provide sub-prime mortgages to borrowers with credit problems.

BNC said it will be the first lender operating at openclose.com, a wholesale division of mortgage.com that focuses on the growing sub-prime niche. Other participating lenders, including First Nationwide Mortgage and GMAC Mortgage, focus on conventional loans.

“BNC Mortgage sees an opportunity to . . . create an additional marketing channel for our wholesale sub-prime lending operation,” said Kelly Monahan, BNC’s president.

Rather than deal with borrowers directly, BNC will work with brokers at an Internet “meeting room” at the https://www.openclose.com site to review loan applications and make underwriting decisions.

Meanwhile, another sub-prime lender, First Alliance Corp., launched its own Internet loan origination business.

The Irvine company’s Web site, https://www.eWholesale.com, also targets the wholesale niche, offering brokers 30-second approvals in some cases. The company recently unveiled the loan site at a trade show in Arizona.

First Alliance Chairman Brian Chisick said he expects the new e-commerce distribution channel to lower the company’s costs and boost profits.