Accredited Home Lenders

accredited-home-lenders-canada As reported last week, Accredited Home Lenders Canada has closed up shop.  Their website is down and their phone seems to be off the hook.

If there are any brokers out there who were adversely affected by this, or who have unanswered questions, we want to know!

Please email us or post your comments here.

  1. We’ve left several messages to get a deal status and no one has responded for 2 days. The website is still down and Accredited has sent any notice whatsoever. I can’t believe they went out this way.

  2. I have three clients who currently hold Accredited mortgages. Of course all three had their mortgage payments deducted at January month end.
    None of them (nor myself) have received any verification of what is going on. As above, we have also left messages at their Mississauga office, with no response. I personally called the US office this week looking for ANY feedback and have also not had that call returned.
    I would like to think that a professional company would at least address a letter to their database expalining what will occur from herein. I assume they plan to leave it in the shambles that it is in. Sad!

  3. Hi Dave,
    Accredited’s closing did seem rather mishandled…to put it gently.
    I’m guessing (but don’t know) that most of Accredited’s funded mortgages have long since been sold off. If past cases are a guide, clients will likely get notice by mail of any changes in the servicing of their mortgages.
    If we hear anything different we’ll definitely post here.
    Thanks for the comments,

  4. Update: A contact at Accredited told us they would be honouring Accredited deals in the pipeline with signed commitments. Existing mortgage holders will be unaffected as Accredited will continue to service these loans. As it stands, Accredited will not be renewing any mortgages at the end of their terms.

  5. I currently have my mortgage with Accredited funded through First National. I would love to know what is going on. I have my fingers crossed that I wont get a letter in the mail asking for full payment??

  6. Hi Christine,
    Thanks for the note. From what Accredited told us, you won’t need to worry about that. They said things should be fine until the client’s term expires, in which case you’ll need to switch lenders.
    That said, if you ever get anything odd in the mail from them we’d be thankful if you let us know.
    Have a great weekend,

  7. I would like to know that if I sold my house before the renewal date approx six months what would the pentily be

  8. Hi Darlene, Penalties are usually 3-months interest or the interest rate differential. However, there are exceptions to this rule of thumb. You should call your mortgage planner or the lender directly to confirm.

  9. I finally got a hold of Accredited and asked about transferring my mortgage in a threatening tone they advised me I am not allowed to move my mortgage any where until my term with them is done. I asked them to show me where I signed doc’s stating this and he took about 5 minutes to find no such documents but advised he would send them to me. None in the mail yet. I want to know how a mortgage company can hold you hostage our rate is 7.2 and we are being offered 5.4 and they say I am stuck with them. What gives?

  10. Christine, this is true, Accredited said the same thing to my father-in-law. It is in the mortgage documents, the actual approval when you signed it. I am not sure if they can actually REFUSE to discharge the mortgage, it would be silly because they are closing up shop in Canada anyway. But they said that there is no way to discharge it, it is closed. Is there a way around this? I hope so! Does anyone know? I have never heard of this before, usually there is a penalty and there you go…

  11. Hi Christine,
    As I recall, Accredited did indeed sell fully closed mortgages. The only way to “break” these mortgages, as I remember, was to sell the property. We don’t know too much about them because we never put anyone in them due to the restrictions. I’d chat with the lawyer who handled your mortgage for any legal advice on breaking the contract.
    Here is Accredited’s customer service number in case you have further questions: 888-853-3979
    They’ve been very responsive when we’ve contacted them at this number.
    I wish you luck!

  12. I am one of their customers but would like to contact them as they seem to have over-billed me. What should I do? They have direct withdrawal from my account. Should I stop it?

  13. As a long standing mortgage professional, I’ve seen many firms come in and go out of business. To say that Accredited handled their demise in an unprofessional manner is quite harsh. Having pulled the plug on their American operation earlier in the year, it was clear that they did not have the finacial support in place to handle this closure in any other manner. Bankruptcies and closures happen all the time and they are always messy. I think all of you should stop whining and act like a g–d— professional. Some of my vast array of clients had mortgages with Accredited too, I wasn’t complaining when they took my clients on and I won’t complain now. Make your inquires. Do your homework and settle this matter.

  14. I have done a few Mortgages with accredited here in the Atlantic Provinces. They started with only doing 600fico+, then $100k values only, then nothing in Atlantic Canada. In 1 year they went through 4 BDMS. All of which took 3months to figure out how to do the job, then quit.

  15. I have an account with accredited in Canada and as you were all saying there is no way of contacting them and no documentation. Now that the Property tax papers have come in the mail where are we to send a copy so that our taxes get paid?

  16. Hi Jody.
    I gave Accredited a phone call and they already had a copy of my property taxes at their office. I didnt have to send it to them. Just remember to fill in your portion and mail it off to the tax department to get the discount.
    If you have any other questions, call the number listed above and you will be able to speak to someone on the phone.
    PS. Apparently there was one mortgage broker who found a loop hole for getting out of their mortgage. My broker is trying to contact this person now to see if there is anyway that I can get out and refinance somewhere else. When I find out more I will update if anyone else is interested.

  17. Thanks for the information, we have a mortgage with accredited and had no idea this had all happened until I tried calling them today and got First National, they confirmed they will hold the mortgage until the end of the term. We’re hoping to get out early also so please let us know as soon as you find out about this loophole.

  18. I heard from a reliable source that their purchase mortgages can be paid out early with a prepayment penalty at anytime ( this is an interest rate differential) , their refinance mortgages can be paid out early after 2 years with the same prepayment penalty, just contact customer service. It will also be spelled out in your mortgage documents. You cant pay out your mortgage at anytime because you chose a locked in rate. it locks both you and the lender in at the rate. If rates had gone up instead of down and the lender asked you to refinacne at a higher rate you would tell them to stick it. If you didnt want to be locked into your mortgage rate you should have taken an open mortgage. Read your mortgage documents next time!!!

  19. “Read your mortgage documents next time!!!”
    I second that. Borrowers can’t blame a lender for the borrower’s own stupidity. For that matter, they can’t blame their broker either. The law holds that you must READ a contract before signing it, and borrowers therefore must be held accountable for what they sign. Otherwise contract law is worthless.

  20. hi dont know what made me to looked them up. Have mortgage with accredited home lenders canda funding corp. My renewal date is for Jan.9 2009 does this mean i have to find another mortgage company and accredited will not renew my spread out in 25 year mortgage. need help thanks

  21. Hi, have update today I spoke with accredited rep. I asked him on my mortgage which the term will be up Feb. So he said yes that I will have to find another lender They are not taking new financing nor are they renewing. Which means I have to find another lender who will hold my mortgage. In other words I have to by Feb. pay my mortgage in full with them.

  22. I also have a mortgage with Accredited with an interest rate of 7.8% and am only into my 3 year term 15 months. My payments are so high that I would like to renew with another lender but am locked in – i need options, they told me the only option I had was to sell and pay the penalty – there’s got to be another angle – anyone??

  23. Could anyone tell me what would happen if I could not find another lender? What if forced into bankruptcy – how long would it take for them to foreclose and kick me out of my home. This is a terrible economy for anyone, especially us seniors with no family and little money. I’m paying $1300/mo for my PIT as it stand, never been late with a payment and never missed a payment – but I work for myself and have found it very difficult to find a new lender.
    Many thanks.

  24. What to do? Cant get ahold of anyone,never got no letters or nothing. The real estate said they have never heard of such a thing happening like this. I dont know what to do.
    Well Ive been on hold for 38 minutes now and still no answer.

  25. I have paid First National for my Accredited Mortgage monthy by western union. I did this to avoid problems with both the mortgage payment and my other autowithdrawls from my bank account. Even though these western union payments were made in advance, with agreement from them, and confirmed payments from me, they still debited my bank account every month and sometimes twice, purportedly to try and get an additional payment. This made all of my other bills bounce month after month. It cost me a fortune in NSF fees and one month terminated my insurance as well. The cost that month was an extra $1800 as I was bumped into the facility insurance market. This company has destroyed my credit rating and cost me a fortune while promising each month that they would stop this predatory behaviour against me. Now they are foreclosing on my home because I was unable to sustain the economic damage that they have done to me.
    If anyone knows what I might do to set this straight, I am all ears. Thanks Rob

  26. Just curious… we are looking at purchasing a Power of Sale that they are selling … i realize they still need to make money to pay their debts, but are they going to get the funds, does this or will this affect me at all?

  27. Samantha
    If you purchase a power of sale from a lender you will almost always receive an unencumbered title. There is nothing you need to worry about in that regard.

  28. Does anyone know how to reach Accredited? They will not respond to any emails I send.
    Thank you.

  29. Why did you take this deal if you have an issue with the rate? You either had poor credit or were a BFS borrower who could not show income, do not cry sour when you received what the marketplace was offering regardless of who the lender was.

  30. My husband & I have had a morgage with Accredited for 2 years, always made the payment & as our home was rezoned tried to get another morgage company with a better rate. That’s when we found out that Accredited was no more, we don’t have a clue on whom holds the loan as I just recieved a phone call from the insurance company stating that they sent in the renewal (as per required) & it came back. Now I don’t know who’s taking our huge payment or whether or not my home is insured as they couldn’t tell me since they’ve never seen this before. Better phone you’re home insurance & make sure you still have it!!!

  31. Hi Laurie,
    Firstnational financial is administering them and taking your payment. Try calling them and they will tell you where to fax your insurance info. 1.800.465.0039

  32. Jody made a post earleir that said “PS. Apparently there was one mortgage broker who found a loop hole for getting out of their mortgage. My broker is trying to contact this person now to see if there is anyway that I can get out and refinance somewhere else. When I find out more I will update if anyone else is interested.”
    Can you give any more info on this?

  33. For anyone living in Newfoundland, my husband and I have a Facebook group called Play Fair, NLCU. We want to warn anyone considering Newfoundland and Labrador Credit Union for a mortgage to make sure they read and understand before signing and, if you don’t understand, get a lawyer – even if they tell you it’s not necessary.

  34. Hi Folks
    Accredited will let you out of your mortgage if you offer them 9 months interest as a penalty.
    Pretty steep but it may be worth it.
    I placed a few clients in this mortgage a few years ago. Be careeful about what you wish for. The same people bitching about the rate are the ones who could not believe their broker was abe to get them a mortgage.

  35. <>I am in Calgary, I bought a home here a little over 2 years ago.
    I had to go through Accredited because my company was still new.
    The market has changed a lot here, my House appraised at $399K then, and now $357K.
    I put 15% down (little over $44K – every penny I had/have)
    Today my mortgage amount is around $336K which gives me less than 5% equity.
    Because Accredited will not be refinancing I need to get a NEW mortgage elsewhere.
    My company has been established long enough now I CAN refinance at a much more manageable rate (I have 7.35% and I can get 3.5% now)
    HOWEVER because there is now less than 5% equity the banks will not refinance the House.
    over 24 payment on the Mortgage and flawless credit….and I am looking at now loosing the house….any one have any insight for me ?

  36. Accredited Home Lenders Canada is NOT BANKRUPT. Only the US portion is. AHL is only not lending in Canada any longer.

  37. What happens if I cannot find alternative financing from another lender when my mortgage expires MAY 1, 2010? Has anyone experienced this?

  38. Hi Karen
    Am I correct in assuming that you got the same letter I did saying we will not be renewing your mortgage after the maturity date? I recieved my letter about three weeks ago and my mortgage matures in Sept. However the way the letter is worded is a bit misleading. Senteces like please have your lawyer or financial institution contact us prior to your maturity date. We look forward to your payment on or before a certain date. What they are doing is basically calling the mortgage. What they don’t tell you in the letter is that Accredited in the states filed for chapter 11 bankruptcy May of 09. What they also don’t tell you is after three months past the maturity date if you can’t continue to make payments your’e screwed. They certainly don’t give you much lead time and as you mentioned what if you are not in position to find alternative financing? I was luckey that I was able to do so. I hope you were able to do the same.The issue with Accredted that really burns me is that they did not waive the pre-payment penalty even though they were payed the funds owed before Sept. Sure I could have waited till the maturity date but what guarentee would I have that I would be in a position to re-finance at that time. I wish you good luck Karen please let me know how you make out.
    All the best Mike B

  39. I had my mortgage with Accredited I received the letter stating they want the FULL payment, with that said…i had to sell my house! They did not give me much time to try and find another bank that would mortgage us. My house was sold for June 1st 2010.

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