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