The Canada Mortgage and Housing Corporation has now confirmed Street Capital
as both an approved issuer of NHA mortgage-backed securities and a seller under the CMB – a dual designation set to help brokers, according to the lender.
“Broadening Street Capital’s funding capabilities is of benefit to mortgage brokers,” says President Paul Grewal, “brokers who are looking for lenders who can help them grow their business over the long term.”
The approval allows Street to be an approved issuer of National Housing Act mortgage-backed securities (NHA MBS) and an approved seller under the Canada Mortgage Bond (CMB) program.
For Grewal, it gives Street the opportunity to flex its muscles.
“Our ability to access an additional source of liquidity is just extra comfort for brokers that we will have the ability to help them grow their business over the long term,” Grewal told MortgageBrokerNews.ca.
“This is an important milestone for Street Capital,” said Allan Silber, chairman and CEO of Counsel , Street’s parent company. “These approvals will enable the business to access an additional source of liquidity for the mortgages it originates and renews, and to be an approved seller into the CMB program.”
Street has been an important player in the broker channel, sourcing single-family residential mortgages solely through a network mortgage brokers across Canada. Street currently offers a broad lineup of high ratio and conventional mortgages, predominantly to prime borrowers.
Grewal promises that the CMHC announcement will in no way change Street’s excellent relationship with mortgage brokers and the mortgage channel.
“This announcement will have no impact on Street Capital’s business model,” says Grewal. “We have consistently supported the broker channel as we believe independent brokers provide sound, impartial advice to their clients.”
The move comes on the heels of the government’s announcement in the spring budget that it will more closely examine the regulation of some commercial paper backed by mortgage securities.