Press release from CNW Group
Street Capital Financial Corporation receives CMHC approvals to securitize mortgages
Monday, May 27, 2013
Street Capital Financial Corporation receives CMHC approvals to securitize mortgages07:55 EDT Monday, May 27, 2013
TORONTO, May 27, 2013 /CNW/ - Counsel Corporation ("Counsel" or the "Company") (TSX: CXS), a financial services company, today announced that its residential mortgage lending business, Street Capital Financial Corporation ("Street Capital"), has received approvals from the Canada Mortgage and Housing Corporation (CMHC) to be an approved issuer of National Housing Act mortgage backed securities ("NHA MBS") and an approved seller under the Canada Mortgage Bond (CMB) program.
"This is an important milestone for Street Capital," said Allan Silber, Chairman and CEO of Counsel. "These approvals will enable the business to access an additional source of liquidity for the mortgages it originates and renews, and to be an approved seller into the CMB program."
Street Capital, sources single-family residential mortgages solely through a network of independent, high quality mortgage brokers across Canada with whom it has built relationships. The company offers a broad lineup of high ratio and conventional mortgages, predominantly to prime borrowers.
"Broadening Street Capital's funding capabilities is of benefit to mortgage brokers, who are looking for lenders who can help them grow their business over the long term," said Paul Grewal, President of Street Capital.
Since launching its current operations in 2008, Street Capital has grown rapidly to become a leader in mortgage broker market share based on funded volume, according to industry statistics. Street Capital originated $1.6 billion of mortgages in the first quarter of 2013 and increased its portfolio of mortgages under administration to $13.3 billion at March 31, 2013 compared to $8.3 billion a year earlier. Street Capital was founded by its current senior management team, all of whom have deep experience in the mortgage and consumer lending industry and previously occupied senior management positions at large Canadian financial institutions. The company has successfully built a broad network of brokers and established stringent underwriting and due diligence processes, while maintaining a focus on customer service.
About Counsel Corporation (www.counselcorp.com)
Counsel Corporation (TSX: CXS) is a financial services company operating in residential mortgage lending through its wholly owned subsidiary Street Capital Financial Corporation, one of the largest non-bank mortgage lenders in Canada. Founded in 1979 and a public company for more than a quarter century, Counsel's goal is to build consistently profitable, industry-leading financial services companies by investing in great leaders and providing them with the strategic guidance and financial resources they need to succeed.
About Street Capital Financial Corporation (www.streetcapital.ca)
Street Capital Financial Corporation is a Canadian owned residential mortgage lender. Street Capital prides itself on offering a broad spectrum of mortgages, competitive interest rates and exceptional customer service. Street Capital is proud to work with mortgage brokers to help more Canadians find financing solutions for home ownership. Street Capital is a wholly owned subsidiary of Counsel Corporation.
The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel currently operates, but because of the factors listed herein, as well as other factors beyond Counsel's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.
SOURCE: Counsel Corporation
For further information:
For investor or media enquiries, please contact:
Stephen Weintraub, EVP, Secretary & CFO
Tel: (416) 866-3058
Tel: (416) 815-0700 ext. 251
For enquiries from mortgage brokers, please contact:
Street Capital Financial Corporation
Paul Grewal, President
Tel: (647) 259-7876