Abode announces permanent closure

Abode announces permanent closure

After Abode's announcement at the end of January that it was close to negotiating a deal with a Toronto-based purchaser, the lender quietly announced the end has come for its mortgage origination business. 

"It is with sincere regret that we must permanently close Abode Mortgage Corporation," said Abode chairman David Nelson. "In the end, pressures from the global credit disruption and corresponding actions taken by our financiers and secured creditors proved too challenging for the company."

The company's statement also said there was no "definitive agreement" for a sale, adding it "will continue to work towards an orderly winding-up of Abode's mortgage origination business." At press time, Nelson could not be reached for comment. CMP is still looking to find out what the closure means for brokers who are owed money from the lender.

Abode first announced it was shutting down in late November, but the new year brought rumours that it could be bought. In January, Nelson told CMP that paying outstanding finders' fees to brokers was "very important to us when negotiating a new purchaser." He added that talks were going well with supporters and that the company would be back within a few weeks.

 

4 Comments
  • Mike Toporowsky 2010-03-11 9:17:15 AM
    Any chance the brokers, who provided Abode with unpaid business, can move their customer's mortgage elsewhere without paying a penalty to Abode? Just offering a reasonable solution.
    Post a reply
  • erica reid 2010-03-11 2:03:20 PM
    Good Idea Mike!
    Post a reply
  • K. Soares 2010-03-12 12:38:45 AM
    I'd surely like to be told if this ever happens. However, it's probably not.
    Post a reply