Another non-prime product line bites the dust. First National has discontinued its Excalibur “Alt-A” mortgage products as of last Friday.
The company said the move resulted from “increased competition from the mortgage insurers in the Alt-A segment and the volatility in the credit markets that first arose last summer.”
95% of Excalibur’s business was with self-employed borrowers who weren’t able or willing to prove income in the traditional way. The company will replace the Excalibur line with an insured product.
First National is the biggest non-bank residential mortgage lender in Canada. It originated $109 million of Alt-A mortgages last quarter and $721 million in 2007.
Yes, we were informed of this a month ago. After paying our mortgage for 3 years – always on time, and paying a high interest rate – they have cancelled our mortgage as of May 23rd. 2009. And they will not renew us. What will happen? will they take our house? We tried to get another mortgage – and we can’t get one now – a sign of the times…
Does anyone have suggestions?
I have the exact same problem now. First National gave us 2 months to deal with it. We could not secure a mortgage and don’t know what to do.
First National refuses to renew. Today is November 15th, 2010 and we have until December 01st to arrange for financing. They did not take their mortgage payment as of November 01st. Since your case was more than a year ago, I’m wondering if you could please let us know what finally happened to you with regard to this case? My wife and I greatly appreciate your advice in advance. Thanks.
We have the same problem now. What happened with you guys?
You may consider talking to a mortgage broker right away, so you can review your mortgage options.
In the meantime, you could buy yourself more time by renewing into an open mortgage or a 6 month option, if your maturity is too soon to look at options.
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