I have only briefly looked at MON vs. REMI, but my impression is that MON deals with niche lending opportunities that involve higher interest rates (currently they are primarily into home equity loans). From their commercials, I believe they are helping people consolidate their higher-rate debt (credit cards, etc.) and pay it off with a lower home equity loan.
REMI simply packages mortgages up and sells most of them to Fannie Mae, etc. In dealing with these other companies, it seems to me to be a much lower risk strategy, and since they are not taking on the credit risk that MON is, I would assume their margins are much smaller.
So, yes, same business, but one seems rather conservative and one rather aggressive. That should explain the differences in their ratios.
Not trying to say if one or both are a good value, though. No opinion there. |
