After revealing a 44 per cent increase in insured mortgage originations in the first quarter of 2010 compared to the same period in 2009, Xceed Mortgage Corporation chairman and CEO Ivan Wahl said the lender's work with brokers has helped the company succeed.
"Our success is confirmation of the progress that we have made working with our network of brokers across Canada," Wahl said in the report, adding the lender has remained competitive with banks and larger lenders on the rate front. "During the past two years, we have worked hard with our broker network in the transition from seeking to originate alternative, uninsurable mortgages to our focus on the insured market."
The lender's first quarter report showed a net loss of $11.8 million, which it said was mainly due to negative fair-value adjustments related to its remaining portfolio of uninsured mortgages. In addressing the issue of uninsured mortgage clients struggling to find financing at renewal time, Wahl referred to Xceed's pending application for chartered bank status, which was submitted close to a year ago.
"We believe that as a deposit-taking bank operating within the guidelines of the Office of the Superintendent of Financial Institutions (OFSI), we also will be able to improve our ability to provide financing options to some of the customers to whom we previously provided uninsurable mortgages and who now, despite having good payment records, are finding it difficult to secure alternative financing when their terms are expiring," Wahl said.
