AGF & HSBC Updates

AGF Trust closed its Montreal office this week to consolidate operations with its Toronto office.  AGF says the move is designed to "streamline" operations in light of "reduced demand for services."

The company said it is still "strongly committed to providing investment loans and mortgages to clients in Quebec."  Given the current economic environment, however, it is "making changes" to its "product offering that will restrict lending to select urban locations." 

A spokesperson said AGF "will continue to lend to clients in various regions, working closely with local financial advisors and mortgage brokers."

12 positions will be affected by the closure of the Montreal office. 

AGF Trust is a balance sheet lender (i.e.  it funds its mortgages itself versus securitizing them) and is based in Toronto.  The company specializes in "near-prime" mortgages.  More on AGF products...

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In similar news, HSBC said today that it is closing its Markham, Ontario mortgage underwriting office effective December 31, 2008.

It is moving "all mortgage underwriting operations for Canada" to its Burnaby, BC office.

Comments

[Manuel]

AGF also let go of all their BDO's today.

[Sam]

Manuel do you mean AGF laid off all of their business development officers in Canada? There are none left in any province?

Do you think there is a chance AGF will not honour existing unfunded mortgage commitments and/or pull out of lending completely?

[Rob]

I just heard they may be laying off as many as 70 people.

[Manuel]

Yes, BDO's-Business Development Officers--let-go, and staff from the Toronto office will/have been let go, as for honouring commitments--they will try to get out of them just like all lenders try to get out them once an announcement like this is made.

[john]

Just Remember a mortgage commitment is not a legally binding obligation much like charitable pledges or IOU's scrawled on a napkin at a late night drunken poker game