Mortgage brokers can still count on the Street Capital products that they have been using for years even if the mono-line's application for a Schedule 1 bank gets approved, according to the lender.
"We think that Street has reached the proper scale and this is the right time to take on this process," said Paul Grewal, preseident of Street Capital. "But we will absolutely continue to support the broker channel."
"We will keep our banking business primarily focused on residential mortgage lending as well as other consumer lending and related services," he told MortgaeBrokerNews.ca.
Yesterday Counsel Corp. and its subsidiary Street Capital, announced that the residential mortgage lender intends to apply to the OSFI and Finance Minister Jim Flaherty for approval to operate as a federally regulated Schedule 1 bank.
Street Capital expects the change to take some time.
“The company anticipates the application process will take an extended period of time, likely at least two years,” a company release said. “If approved, the bank would carry on business in Canada under the name of Street Capital Bank of Canada in English and Street Capital Banque du Canada in French and its head office would be located in Toronto.”
Grewal said the move is part of a growth strategy that began when Street Capital was acquired last year by Counsel Corp.
Recently, Street Capital doubled its percentage share of mortgages underwritten through the Canadian mortgage broker channel to more than 8 per cent in the first quarter of 2012 over the first quarter of 2011.
The lender has also contributed well to Counsel Corp.’s bottom line by posting a 29 per cent jump in its recent financials.