Saturday, January 26, 2008

A notice from Accredited Home Lenders

I know we said last time that my next post would be a list of "don't do's" but this news release just came across my desk and I thought I'd post it. This illustrates what is happening to some of the "alternate" lenders in Canada due to the problems experienced in the "sub prime" market worldwide. Other lenders have ceased operating or seriously cut back on lending and administrative operations here since the middle of August 2007 but in no means does it apply to all lenders. - Marshall

"Valued Broker,
As you are aware, current difficult conditions in the secondary markets have resulted in the inability to sell or securitize loans in Canada. At Accredited, we have worked hard over these past few months to continue funding loans. Unfortunately, the secondary market head-winds have become too strong - so we are no longer accepting new loan applications at our production offices in Toronto and Vancouver.

We are downsizing the size of the Canadian workforce appropriately to reduce our costs in Canada while we monitor the market in the future. In addition, we will continue all Canadian servicing and administrative functions in order to maintain the highest level of loan servicing.
Here's what this means to you:

* Effective January 25, 2008, we will no longer be accepting new loan submissions for approval.

* We will honor all outstanding funding commitments, and expect that the last funding commitments will expire in early February.

* The True Blue Rewards program has been discontinued effective immediately. If you are a True Blue Rewards member with an existing point balance, you will have ample opportunity to redeem your points for rewards. Details and instructions for redemption will be sent to members separately.

If you have any questions, please contact our Vancouver office at (866) 862-7610.

Thank you for your support and patronage. This decision is not a reflection of our valued relationship with you, but rather necessitated by deteriorating secondary market conditions that cannot currently sustain a viable origination platform in Canada.


Joseph J. Lydon
President and Chief Operating Officer
Accredited Home Lenders"

1 comment:

Central Home said...

Thanks for letting me know about our links, they should be working now.
I'll link your blog today.
Have a nice day!
Rebecka Sternberg, Central Home