With a pared-down staff and a new business model focusing on prime loans, Xceed Mortgage Corporation reported a strong fourth quarter in 2008 despite a net loss of $12 million in the last fiscal year.
“We feel quite enthusiastic about our future at this point simply because we have rebuilt the company and we have returned to profitability,” said Ivan Wahl, CEO of Xceed.
In last year’s fourth quarter—which ended October 31, 2008—Xceed finished selling all of its uninsured mortgages to securitization vehicles. Starting last February, the company reduced staff from 150 to 40 and shifted to originating and renewing only insurable mortgages, a change from its previous business model of offering uninsured, high ratio mortgages.
In addition, the end of the asset-backed commercial paper (ABCP) restructuring plan in January resulted in a cash flow and pre-tax income of $4.77 million for Xceed, whose investments in the paper had been frozen since August 2007.
To compete with other lenders in the prime market, Wahl said he is promoting Xceed’s Prestige program, which gives experienced mortgage brokers lower interest rates and commission top-ups.