Abode Mortgage Is Finished

Abode-Mortgage The deal Abode announced Friday is not going to close, so the company is shuttering its mortgage business.

The company issued this press release at 10:24 ET:

Abode Mortgage Holdings Corp. Announces the Closure of the Company's Mortgage Origination Business

Abode said:

“…The interim funding and mortgage loan purchase arrangements referred to in the release have terminated. Without an established funding and whole loan purchase arrangement, AMC cannot properly carry on its business and the Directors of the Company have decided to cease operations.”

CEO, Mike Linehan, added:

“Management and the staff of AMC are devastated by the decision to cease operations. However, without a committed mortgage funding and whole loan sale partner, the business of AMC is not viable. We wish to thank our loyal industry partners and deeply regret our inability to carry on in business.”

There is no word yet on whether Abode will honour current approvals in its pipeline. The fact they left that point out of the press release leads us to believe they might not, or are still negotiating with their funding sources on this matter.

Headquartered in Vancouver, Abode Mortgage Corporation was less than three years old.  It started lending in February 2007.

  1. Well it seems another lender has screwed brokers yet once again!!!
    I have heard that many brokers & their agents have yet to be paid commissions on funded deals.
    All those high ranking officials from Abode should now have their names tarnishes wherever they go.

  2. ‘We wish to thank our loyal industry partners and deeply regret our inability to carry on in business.”
    -They want to thank the loyal industry partners by screwing over agents. That’s pathetic!
    [Reader Note: As per CMT policy, we wish to inform you that this message was sent under a different name from the same location as a previous message sent by “wethen.”]

  3. Our company has 4 agents waiting to be paid on Abode deals that are now in “limbo”.
    We are not sure if these agents are going to be paid now.
    And Upper-Management @ Abode doesn’t seem to care.
    These managers and should ALL be held accountable!!!!

  4. I understand your frustration but I would not tarnish all of their names. Abode employed a lot of decent people and I feel bad for them because they are now out of work.
    The problem you are facing is out of the control of most people there. The company is basically out of money from what I’ve heard.

  5. That’s the problem right there. People are all to willing just to say AND accept the excuse “It’s out of our control – Its not our fault”.
    That’s the exact same excuse the CEO’s, VP’s & Presidents used down in the good ol “US of A”.
    Someone must be held accountable. If not where does it end!!???
    Our company and others I’m sure now have agents who have put in good, hard work placing deals into Abode where they now stand the chance of not being paid!! – That’s complete BS. (pardon my language).
    It’s about time that the public NO longer accepts the “passing the buck” excuses of managers, CEO’s, etc..etc…
    If these corporate types want to keep passing the buck then how about passing the buck to those agents & companies that need to be paid!!!!!

  6. Too bad, so sad.
    Abode was so agressive in its practices, that as a lawyer acting for a long time client I sent the work away rather than accept terms of closing which sought a vast amount of personal information from my firm and refused to allow funding based on the tradititional survey and zoning, insisting, instead of due dilligence, on title insurance from a specified insurer. Ergo – bundling.
    The broker, who originally was approached as a representative of RBC, was smugly indifferent to my concerns and was cryptic as to if, and if so, what, relationship Abode had to RBC. Messages were left by voice mail at Abode’s office # in B.C., it being impossible to roust a actual human being, and a return call was made on Abode’s behalf from an equally cryptic fellow in Alberta using a cell phone from his car. He assured me he was Abode’s representative living in Alberta but that Abode had no office there.
    Regarding Abode’s failure, as I say, too bad, so sad. Thank goodness they didn’t get it right enough to stay in business, but I worry about the next one.
    p.s. Of course, the mortgage committment to the client I referred away was not kept, and the transaction is in turmoil.

  7. How about the people they left hanging out to dry and left trying to find another lender with NO NOTICE!! and alot of BS. I phoned on my RENEWAL date in MAY!!!! asking what was going on It was only THEN I was informed that they were not going to be renewing us.THANKS FOR THE NOTICE!! I think you people need to be finding the new lenders for the people you have screwed over, we are now frantic and freaking out…we honored our agreement.Can YOU say the same

  8. LOL. You didn’t shop for a mortgage before your renewal date and you’re blaming others? Hahahaha.

  9. I did NOT KNOW!! they were going under, I was not informed by them .Cant your READ?! I had NO PLANS to “shop for a mortgage” I was planning to renew with
    ABODE. Try to keep up Wayne.

  10. Help! My husband and I bought our house and took our mortgage with Abode on Nov. 8th, 2009. 22 days later, they announce they’re shutting down their mortgage division, but will be “servicing” their existing mortgages until the end of their terms. We asked if they would allow us to find a new lender without penalty, but of course they won’t. Wishful thinking, I know, but it was worth a try. Now we have about $60,000 we want to put on our mortgage as a lump sum privilege payment and we are very scared and hesitant about whether or not we should do this. We can’t get a straight answer from Abode about their financial situation, whether or not they’ve sold our mortage to someone else, or if someone has bought their company. They don’t even want to acknowledge there are problems. And we found out by accident at that – they haven’t been upfront with their customers at all. Please – any advice?!?

  11. Hi Denise,
    I’d have to defer comments about Abode’s situation to them, but I can tell you this: Normally, not much changes when a lender sells a mortgage. The terms you agreed to should not change and you should be able to make your available pre-payments without any concern. After making your pre-payment, simply ask customer service for an interim mortgage statement so you have a record of your new lower balance.
    If a customer service rep has given you a different impression of your ability to make pre-payments, do let us know.

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