TORONTO, April 10, 2012 /CNW/ - Counsel Corporation ("Counsel") (TSX: CXS) announced today that its subsidiary, Street Capital Financial
Corporation ("Street Capital"), a residential mortgage lender, is entering the near prime segment of
the Canadian mortgage market with the introduction of its new Street
Options Program. Near prime is a segment of the mortgage credit market
just below prime and comprised of borrowers who are unable to find
financing through traditional sources.
"We're very pleased with Street Capital's decision to expand, prudently,
into near prime residential mortgage lending, a market segment we
believe is underserved and one that offers potentially higher profit
margins," said Counsel CEO Allan Silber.
"Broadening our product line is an important step in the execution of
our growth strategy," said Street Capital CEO Ed Gettings. "It
leverages the strong relationships we have established with mortgage
brokers, who have benefited from our focus on excellent customer
service and it allows Canadians to benefit from more options and
choices to resolve barriers to home ownership."
Street Capital plans to sell the mortgages it originates through its
Street Options Program to institutional investors, as it does with the
mortgages generated by its prime lending business. The company will
launch the Street Options Program to a small group of mortgage brokers
in Ontario and will progressively expand it to additional approved
mortgage brokers across Canada. It will support brokers with dedicated
senior underwriters, a Credit Manager and a Regional Vice President of
Sales who will work together to find solutions for the needs of clients
with unique circumstances.
As at the end of 2011, Street Capital had $7.5 billion in mortgages
under administration and was one of the leaders in Canadian mortgage
broker market share.
About Counsel Corporation (www.counselcorp.com)
Counsel Corporation (TSX: CXS) is a financial services company that
operates through its individually branded businesses in residential
mortgage lending, distressed and surplus capital asset transactions,
real estate finance and private equity investment.
About Street Capital Financial Corporation (www.streetcapital.ca)
Street Capital Financial Corporation is a Canadian residential mortgage
lender. Street Capital prides itself on offering a broad spectrum of
mortgages, competitive interest rates and exceptional customer service.
Street Capital is proud to work with mortgage brokers to help more
Canadians find financing solutions for home ownership.
The statements made in this release that are not historical facts
contain forward-looking information that involves risks and
uncertainties. All statements, other than statements of historical
facts, which address the expectations of Counsel or its subsidiary
Street Capital (together, "the Companies") should be considered as
forward-looking statements. Such statements are based on knowledge of
the environment in which the Companies currently operate, but because
of the factors listed herein, as well as other factors beyond the
Companies' control, actual results may differ materially from the
expectations expressed in the forward-looking statements. Important
factors that may cause actual results to differ from anticipated
results include, but are not limited to, obtaining necessary approvals
and other risks detailed from time to time in the Companies' securities
and other regulatory filings.
SOURCE Counsel Corporation
For further information:
EVP, Secretary & CFO
Tel: (416) 866-3058
The Equicom Group
Tel: (416) 815-0700 ext. 251