With many rumours circulating regarding the future of Abode Mortgage Corporation, the prime lender that shut down its mortgage business back in Nov. 2009, CMP was able to speak frankly with David Nelson, CEO and Chairman of the Board, to attempt to clarify a few of them.
Not only will Abode continue to function as a lender in the broker channel, he said, but one of the key bargaining points was paying any outstanding fees to brokers.
"We plan to reactivate all brokers," said Nelson. "Paying outstanding finders' fees was very important to us when negotiating with the new purchaser."
He added that the company has been negotiating for the past two months with the purchaser and it has "finally reached a point where [it is] going to be able to talk about it soon."
He said talks were going well with two large supporters, CMHC and Deutsche Bank, and that Abode will be back within a few weeks with even more product offerings as before.
However, Nelson remained tight-lipped on the identity of the new purchaser, as well as some rumours that it was a Toronto-based company. He did however say that it was a "well established" Canadian-based finance company.
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