Subprime Troubles Slows Canadian Lender’s Growth
Kerri Panchuk | 08.22.07

Toronto-based Reliant Financial Service Corp., a provider of subprime residential mortgage loans, says troubles in the U.S. subprime market are causing the Canadian lender to reduce the number of loans currently accepted into its portfolio.
 
Reliant’s Senior Vice President Steve Hamilton told shareholders in a letter that the organization is working prudently to insure the company meets new standards for loan loss requirements—a heightened priority in today’s subprime sector.

Hamilton added that even with the company still strong from an operations standpoint, like all lenders, they are feeling the impact of the U.S. subprime fallout with ratings agencies downgrading pools of subprime mortgages in general.

“While the company is operational and committed to full scale solicitation of subprime Canadian-based mortgage applications, in recognition of the downturn in the U.S. subprime residential market and the potential for developments affecting an otherwise healthy Canadian market, the company has prudently delayed processing and closing other than a few applications,” Hamilton said. “As a result, the company has been able to fully test and tweak its systems while avoiding the developments that have occurred in the U.S. market."