Pacific & Western Bank of Canada Enters Insured Residential Mortgage Business



    PWBank has entered into an agreement to invest in insured residential
    mortgages; now a key player in the insured mortgage market

    PWBank closes $42.6 million in introductory investment

    LONDON, ON, Sept. 2 /CNW/ - Pacific & Western Bank of Canada (PWBank), a
wholly owned subsidiary of Pacific & Western Credit Corp. (TSX:PWC), has
entered into an agreement to invest in insured residential mortgages.
    PWBank has entered this business agreement consistent with its corporate
strategy of diversifying and growing the Bank's lending assets by capturing a
significant part of this high quality and low-risk Canadian insured
residential mortgage market.
    Canadian government mortgage lending rules have significantly reduced the
financial difficulties faced recently in other markets, such as the United
States. Total mortgages outstanding in Canada are tipping the $900 billion
mark, with originations of $200 billion expected for 2008. PWBank's focus will
be on funding insured mortgages by recognized entities such as CMHC, AIG and
Genworth.
    This new business alliance will, in a single move, position PWBank as a
key player in the highly profitable, insured mortgage market.
    David Taylor, President & Chief Executive Officer of PWBank stated, "This
funding partnership enables PWBank to invest in large pools of insured
mortgages, and the relationship furthers our corporate strategy of
capitalizing on our low-cost structure and of expanding into new, high quality
and low-risk markets. Furthermore, we have proven, state of the art software
that can handle these large volumes of insured mortgages."
    The Canadian Association of Accredited Mortgage Professionals also
welcome the news, as it further expands the confidence level in the
residential mortgage market.

    About Pacific & Western Bank of Canada:

    PWBank, a Schedule I chartered bank, is a branchless financial
institution with approximately $1.5 billion in assets. PWBank specializes in
providing innovative financing to large corporate and government entities
including hospitals, school boards, universities and colleges, municipalities
and provincial and federal government agencies. With no retail operations or
store fronts, PWBank is one of the most efficiently operating financial
institutions in Canada. These overhead savings translate into very competitive
rates for the PWBank's clients.

    Pacific & Western Bank of Canada is wholly owned by Pacific & Western
Credit Corp., whose shares trade on the TSX under the symbol PWC.

    To receive company news releases, please contact:
    Carla McPhee at carlam@pwbank.com, (519) 675-4204





For further information:

For further information: Investor Relations: (800) 244-1509,
InvestorRelations@pwbank.com; Public Relations & Media: Tel Matrundola,
Vice-President, (416) 203-0882, telm@pwbank.com; Visit our website at:
http://www.pwbank.com

Organization Profile

Pacific & Western Credit Corp.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890