The decision by Street Capital’s parent company to dispose of its non-core business to concentrate on the mortgage lender is good news for brokers, Paul Grewal.
The decision by Street Capital’s parent company to dispose of its non-core business to concentrate on the mortgage lender is good news for brokers, Paul Grewal.
“We have been executing on our growth strategy, which includes broadening and deepening our relationships with high-quality mortgage brokers,” says the president of Street Capital. “This decision by Counsel Corporation enables Counsel’s senior management to focus and build on the opportunity for growth and profitability we can provide.”
That move by the lender’s parent company, Counsel Corporation, is the plan to dispose of non-core operating business segments and reflects a strategy to focus on financial services.
“Street Capital is a significant growth platform for Counsel,” says Allan Silber, chairman and CEO of Counsel Corporation. “Mortgage originations have increased by more than 60 per cent in 2012 compared to 2011, and our mortgage portfolio has more than doubled to over $12 billion since its acquisition, making Street Capital one of the leading non-bank lenders operating in the mortgage broker channel.
“Street Capital has an exciting growth strategy,” says Silber. “Additionally, last December, Street Capital applied to Canada's Minister of Finance for approval to operate as a federally regulated Schedule I bank. If approved, it would enable the company to broaden its product line into other forms of consumer lending and related services, thereby increasing its value proposition to brokers and retail customers.”
Street Capital is Counsel’s core operating business, accounting for approximately 80 per cent of Counsel's revenues in 2012. Counsel’s future plans are focused on deepening profitability.
“We anticipate the application process will take an extended period of time, likely at least two years,” Grewal told MortgageBrokerNews.ca. “Street Capital will continue to be focused and committed to the mortgage broker channel. If the bank license is approved, we will keep our banking business primarily focused on residential mortgage lending as well as other consumer lending and related services.”
Counsel Corporation, founded in 1979, is a financial services company that operates through its individually branded businesses in residential mortgage lending, distressed and surplus capital asset transactions and private equity investment.
As part of its strategy to focus on financial services, Counsel has been streamlining its operations, including monetizing almost of all of its real estate assets and winding down its real estate management business. The decision to dispose of its remaining business segments accelerates this process.
