30 July 2003 12:00am

"Low doc" loans are driving volumes at mortgage lender Rams Home Loans, accounting for about 43 per cent of new business.

Rams is taking steps to fund $1.5 billion in loans through its first mortgage securitisation this year, in a bond split into a US$492 million tranche, a €450 million tranche and a still unspecified subordinated tranche.

Rams' ratio of low documentation loans to full documentation loans is the highest recorded so far this year among those lenders that fund their lending through securitisation. More than a third of Interstar's new business is in low...