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.
For further information:
EVP, Secretary & CFO
Tel: (416) 866-3058
The Equicom Group
Tel: (416) 815-0700 ext. 251