The Money Store Inc. has moved gingerly into one of the mortgage industry's most daring types of loans.
The company began in the second quarter making so-called "125 percent" loans - that is, second mortgage loans for up to 25 percent more than the appraised value of a home.
Traditionally, lenders have been willing to offer home equity loans for only up to 80 percent of a borrower's equity.
"It's the hot product of the moment," said Marc Ely, president of Sente Financial Corp., a Sacramento company that got into 125 loans when they began appearing in 1995.
"I'm surprised (The Money Store) has taken so long getting into the market," Ely said. "I'm not …