Xceed to halt mortgage origination

Xceed to halt mortgage origination

In announcing its financial results for 2010, Xceed Mortgage stated that it will suspend origination of insured mortgages through its broker network and that its application to become a regulated financial institution will continue to remain on hold.

 

According to Xceed chairman Ivan Wahl, while the company was encouraged by signs of a strengthening economy earlier in the year the tightness of credit markets, the cost of financing new mortgages through the insured mortgage broker channel became increasingly costly, particularly in the fourth quarter. Originations in the fourth quarter were down to $51.1 million from $93.1 million in the third quarter and $130.3 million in the fourth quarter of 2009. For 2010 originations through external brokers totaled $228.4 million compared with $374.2 million in 2009.

 

“As the result of the difficult market conditions, the spreads available on insured mortgage originations through the broker channel have significantly tightened and [Xceed] has seen declines in its mortgage volume. We also have seen a reduction in the number of mortgage aggregators in the market who are willing to purchase mortgages at competitive rates,” said Wahl in a released statement.

 

“In view of the current market conditions, effective January 14, we will suspend the origination of insured mortgages through our network of external brokers. We will continue to manage our $1.6 billion of mortgage and other assets under administration, and will continue to offer renewals and refinancing through our internal sales group.”

 

It was also announced that Michael Jones, president and COO was appointed president and CEO. Wahl will remain as chairman and as an officer of the company, responsible for strategic corporate development.

5 Comments
  • JORGE 2011-01-14 7:03:39 AM
    To be honest through the many years of dealings with over 75 different lenders from A..B...C...Xceed was not a very good choice for over 95% of my clients. It really depends on who is running the company that makes it a success or failure. Having dealt with Xceed before I decided to take it off my list due to some of the people running the organization,,,this was bound to happen.
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  • padarzoli 2011-01-14 7:31:07 AM
    Watch them announcing soon, they will not renew any of the mortgages and if you think their stock prices has been going down in the toilet, you will see how the little guy, the stockholder gets ripped again, I have heard from so many they have got notice of no renewal. Sorry to see though another lender bite the dust, many broker has earned alot of commission and they helped many client to make ownership, while they had no other choice... so long Xceed
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  • Anoymous 2011-01-15 5:10:21 AM
    Just another reason to deal with Canada's chartered Banks!
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