Canada’s TD Bank Helps U.S. Taxpayers’ Market Retreat: Mortgages

Canada’s Toronto-Dominion Bank is expanding its U.S. mortgage lending by holding loans on its books -- a business model U.S. banks are just starting to revive as policy makers seek to reduce the government’s dominant role.

Toronto-Dominion, Canada’s second-largest bank, made about $8 billion of home loans in the past 12 months through its U.S. unit, known as TD Bank, according to Malcolm Hollensteiner, the division’s director of retail lending sales and production. It retained almost all of that debt, more in keeping with Canadian practices, and in contrast to most U.S. banks, which usually package their originations into government-backed securities.