Xceed Bank

Xceed Xceed Mortgage plans to become one of Canada’s newest banks.  The company believes that doing so will lower its mortgage funding costs and help it get back into non-prime lending. 

(Xceed used to be a big subprime lender before the ABCP crisis hit in August 2007.)

Chairman/CEO, Ivan Wahl, said this in a statement today: 

  • “Xceed determined that it is advantageous for us to become a Schedule 1 bank as it will provide us with access to retail deposits as an additional source for obtaining funds that we can use for our mortgage originations activities."
  • "Retail deposits are a stable, cost-effective means to warehouse insured residential mortgages prior to our pooling them for sale to the Canada Mortgage Bond program. Retail deposits also are a reliable and permanent way to fund conventional residential mortgages to be held on Xceed’s balance sheet until maturity.”
  • “Continuation as a bank also will assist Xceed in gaining approval from the Canada Housing and Mortgage Corporation to pool and sell mortgages directly to the Canada Mortgage Bond program without the need for us to rely on an intermediary and pay the costs associated with that.”
  • "As a bank, Xceed will be able to resume selling financial products to the niche market that is not well-served by traditional lenders and we will be able to compete on a level playing field with existing small banks and trust companies."

On September 10, 2009, Xceed shareholders will be asked to approve the company’s conversion to a bank.

Xceed’s stock reacted favourably to the news, closing today at a 52-week high of $1.75 per share.

A few other lenders in the industry are also considering converting to banks…for similar reasons.


Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of insured residential mortgages that it originates in Canada. The company has approximately $2.0 billion of mortgages and other assets under administration. Xceed’s shares are traded on the Toronto Stock Exchange (TSX: XMC).

  1. This company spits through staff more than Home Trust, both companies believe in the philosophy, we have a “HR” department, but it’s just a corner office, i.e. they do what they want. Don’t believe me, just ask someone who used to work at either of the two companies previously.

  2. Hi Truethat,
    I’m not sure that that’s a fair criticism without noting the context.
    Xceed, for example, ran into completely unforseen circumstances when the ABCP floor fell out. If they did not make the difficult decision to downsize, the company might no longer be in business today.
    Regarding Home Trust, I frankly don’t know that much about its internal operations. However, I have met some of Home’s senior management and know they’re very capable and well respected. HCG’s stock price since March reflects this.

  3. Rob,
    You are confusing things.
    1) Xceed is notorious for their turnover numbers, this was well before the subprime meltdown
    2)Hometrust’s stockprice and senior management–has nothing to do with my comment above. Do you think Nick K. is going to say yeah we have bad turnover.
    As I stated speak to someone who used to work at either company what it’s really like, speak with an ex-underwriter for example, and you will see the context you desire.

  4. Truethat,
    We’ll agree to disagree and leave it to readers to judge the accuracy of your statements. I, for one, don’t feel it’s appropriate to judge a company without intimate knowledge of the circumstances.

  5. Rob,
    I for one appreciate your website. I have also read the print at the bottom of the page, and I understand that your mandate for this website is to inform people.
    I am more informed as a result of this website.
    Truethat, I have worked with companies that do not have the philosophical ideals I desire, however when it comes down to getting the product that is best for me, I will work with them if they offer the best product.
    It is like saying Nike as a company builds their wealth on manufacturing products in 3rd world companies making huge $$$ off the backs of uneducated children and adults. Dont buy their product because I dont believe in that fundamental way of doing business. (These are documented truths.)
    Poppycock. If you want to wear Nike apparel, you will.

  6. Make that two that appreciate this site. You guys do a super job.
    More to the point of the article, I think the bank license will mark a great turnaround story for Xceed. They were on the brink for a while and it’s good to hear that Canadian’s may soon have another lender doing uninsured business.

  7. I am a home owner who has a mortgage with Xceed. I ve been told that after being with them for 7years and never missing a payment that my mortgage will not be renewed and that on July 28/10 they will take my home. Yes I am one of those individuals that does not fall into the regular bank system. I find Xceed to be heartless to just drop A1 repayment clients and cause them to lose their homes and the money they have invested in them. The only positive thing to come out of this is that the media where I live say that this is a great story to run.

  8. Hi Steve,
    Thanks for the note. I feel for you as I know you’re in an incredibly tough spot.
    Xceed, like many subprime lenders, lost their access to subprime capital after the credit crisis in late 2007-2008. There was little that they (and many other alternative lenders) could do to get reasonably-priced funds to lend out.
    That said, this doesn’t help you today. So let me ask you, how much equity do you have in your home? Where is it located? What is your credit score, job situation, and ratio of monthly debts to income? If you’d like to email me (or any other broker) this info then perhaps another solution might be found.
    All the best,

  9. Agree with Rob’s comments 100%. Reach out to a mortgage planner and look at your options for alternative financing. Unfortunately your situation is not unique as here are sadly thousands in the same situation across Canada as you who have mortgages with these lenders not able to access capital to lend -in some cases the lenders themselves are no longer in business. By law the lender at the end of the term does not have to renew you and in Xceeds case they no longer have the same ability to access financing that is not able to be insured by an insurer like CMHC. Did the broker who originally arrange your mortgage with Xceed suggest at any time a plan for you to qualify after the initial term with a “prime” lender like a bank?

  10. I feel that Exceed is a horrible company to deal with. I`m actually in the process of moving my mortgage and they are still creating stress and BS in my life. They are not organized, they don`t seem to keep track of the things they say, and when you ask a question its answered with a question. I`m very happy to be moving my mortgage and I feel for anyone that is unable to. You can give whatever story you want about the reasoning. But when they only did cmhc mortgages now but could look for other financing for me I figured fine it would be easier for me that way even though I may have a higher rate. This turned into a nightmare. It was don`t worry about it there’s time and then when they said they found an option for me I couldn`t get any of the normal details like rates, interest terms etc. Plus they wanted me to pay for an appraisal bla bla bla. I got to the point that if i was going to need to pay fee`s and for appraisal I should check with the bank as they hold my other mortgages. As soon as the appraisal came back all of a sudden they had papers out to me oh now they didn`t need the 50 million other things. When they couldn`t tell me what would happen at renewal because this wasn`t even available a few months ago. I said I would set a date with my lawyer for the renewal and they said I didn`t need that. YOu should see what they sent me. A kid would know better than to sign it. Everything was wrong dates etc.
    So I know this a long story, but he`re`s the kicker. Today I get a call from one of my tenants because they have been given a notice because I haven`t been able to be contacted. Which is not true!!! aand thinks the they are going to come home and locks will be changed. I`m so dam angry don`t know what to do with myself. So they are making it look like i`m not paying my bills and I have never ever missed a payment on my Mortgage. It is being moved and I`m checking to see what type of legal action I can take. I feel they should have to send my tenants letters appoliging and explaining I was never behind!

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