TORONTO, Sept. 12, 2012 /CNW/ - Counsel Corporation ("Counsel") (TSX: CXS) and its subsidiary Street Capital Financial Corporation ("Street Capital"), a Canadian residential mortgage lender, announced today that Street
Capital intends to apply to Canada's Minister of Finance for approval
to operate as a federally regulated Schedule I bank, with its banking
business primarily focused on residential mortgage lending as well as
other consumer lending and related services.
Street Capital's application requires approvals from the Office of the
Superintendent of Financial Institutions (OSFI) and the Minister of
Finance and there is no assurance these will be received. The company
anticipates the application process will take an extended period of
time, likely at least two years. If approved, the bank would carry on
business in Canada under the name of Street Capital Bank of Canada in
English and Street Capital Banque du Canada in French and its head
office would be located in Toronto.
Counsel acquired Street Capital on May 31, 2011 and the company has
subsequently been a highly successful and growing source of revenues
and income to Counsel. While Street Capital will continue with its
current business of sourcing and funding insured and uninsured
mortgages, a bank license would enable Street Capital to broaden its
product line into other forms of consumer lending and related services,
thereby increasing the company's value proposition to brokers and
retail customers. Street Capital remains committed to the mortgage
broker channel and intends to continue to operate through this channel
should its application be approved.
From commencement of operations in 2008 to June 30, 2012, Street Capital
originated and funded approximately $11.3 billion in mortgages. The
company had $9.5 billion in mortgages under administration at June 30,
2012. Street Capital is now among the top mortgage underwriters
operating through the mortgage broker channel in Canada.
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:
For investor or media enquiries, please contact:
EVP, Secretary & CFO
Tel: (416) 866-3058
The Equicom Group
Tel: (416) 815-0700 ext. 251
For enquiries from mortgage brokers, please contact:
Street Capital Financial Corporation
Paul Grewal, President
Tel: (647) 259-7876