TORONTO, June 7 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a Canadian provider of insured mortgages, today announced that it has entered into a new uncommitted funding relationship with a large international bank to sell insured mortgages for ultimate sale into the Canada Mortgage Bond Program (CMB). This arrangement replaces the CMB aggregator arrangement that was previously discontinued as announced by the Company on May 21, 2010.
In addition, the Company also announced today that it completed its first sale of insured mortgages to this counterparty in the amount of $59 million.
"We believe that this new relationship will create additional opportunities for the Company to originate insured mortgages for ultimate sale into the CMB. We look forward to working with this provider to continue and expand our current range of mortgage products offered," said Ivan Wahl, Chairman and Chief Executive Officer of Xceed.
The Company also continues to develop and expand on its current funding sources in order to provide a sustained and secure source of funds.
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of insured residential mortgages that it originates in Canada. The company has approximately $1.9 billion of mortgages and other assets under administration. Xceed's shares are traded on the Toronto Stock Exchange. To find out more about Xceed Mortgage Corporation, visit our website at www.xceedmortgage.com.
Forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties. Specifically, there can be no assurance that the company will be successful in making new arrangements for the funding of mortgages or that further changes to Xceed's mortgage offering will not be required as a result. Actual results might differ materially due to various factors such as the competitive nature of the mortgage industry, the ability of Xceed to continue to execute its growth and development strategy, and the reliance of Xceed on key personnel. Xceed assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in these. Additional information identifying risks and uncertainties is contained in Xceed's regulatory filings available on its website and at www.sedar.com.
SOURCE XCEED Mortgage Corporation
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