Abode shuts down mortgage business

Abode shuts down mortgage business

Abode Mortgage Corporation is shutting down business after the prospective sale of the company by a private investment firm fell through.

"Management and the staff of AMC are devastated by the decision to cease operations," said Abode CEO Mike Linehan in a statement. "However, without a committed mortgage funding and whole loan sale partner, the business of AMC is not viable. We wish to thank our loyal industry partners and deeply regret our inability to carry on in business."

With the sale of the company no longer going forward, the interim funding and mortgage loan purchase agreements referred to in the previous press release from Abode have been terminated.

Abode Mortgage Corporation, a subsidiary of Abode Mortgage Holdings, launched in February 2007. The company specialized in high ratio prime residential mortgages and placed seventh overall in CMP's brokers on lenders survey earlier this year (it placed first for BDM support).

When commenting on the brokers on lenders score, senior vice-president Joe DiGiambattista said Abode was focusing on "removing roadblocks" for mortgage professionals so that the lender was easier to do business with.

 

12 Comments
  • Carol Bell 2009-12-01 6:40:42 AM
    What happens to existing funded mortgages? Mortgage agents are understandably losing faith in placing deals with new lenders. It ultimately reflects poorly on all concerned.
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  • Marcy Berg 2009-12-01 6:43:13 AM
    Sorry to see this. Joe and his team are top notch and will be missed.
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  • Another Mortgage Agent 2009-12-01 8:12:26 AM
    Carol,

    I would imagine that they will contract out servicing to someone like MCAP or First National. In the meantime probably look for buyers of their current funded portfolio. Who know, maybe CMHC will buy it from them!

    If you have current clients in an Abode mortgage you should probably advise them that Abode will either call loans and/or definitly NOT renew at maturity. Same thing happened when other lenders exited the market in previous years.
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