Moneyconnect Halts Lending

Moneyconnect is now the latest Canadian casualty of the subprime fallout.  The "non-conforming" lender has "Suspended new loan originations until further notice," according to a company release today.

The decision was a result of precarious money markets that made it impossible for Moneyconnect to get the capital to fund new loans.  GMAC, HSBC, and other lenders have already suffered similar capital-raising difficulties.

The news is especially disappointing since the Mississauga-based company had just launched it's lending operations this past February. 

The company says it will continue to honour its commitments to brokers and customers on deals in progress.  We wish the team at Moneyconnect the very best and will report back if/when they resume lending.

Comments

[Confused Reader]

GMAC and N-Brook at still accepting new deals? HSBC Finance (not HSBC) are closed. Could you please clarify your statements in the second paragraph...

[Canadian Mortgage]

CR.

The difficulties these lenders have faced stem from increased perceived credit risk, and/or trouble raising capital. As a result, certain lenders have had to halt lending altogther or significantly tighten their underwriting standards. N-Brook is in a solid position and definitely still accepting new deals, according to the company. We apologize for any confusion.

Robert, CMT

[Jim]

Thanks for this.
Lender specific news is greatly appreciated. Also news about new products, and ones that have disappeared is great.

There really isn't another site like CMT in Canada.

Rob looks good in a suit; more professional than the vacation photo. ;-)

Jim

[Canadian Mortgage]

Jim,

Thank you. My wife thanks you also for helping defeat the "Bring back Rob's old photo" movement.

Rob