Xceed Mortgage Corporation (TSX: XMC) has asked the Office of the Superintendent of Financial Institutions to place its application to become a federally regulated institution on hold pending the completion of several initiatives, the company said Thursday.

The initiatives include completing Xceed’s transition from operating as a non-conforming lender to a prime lender and the significant reduction of the remaining mortgage balances in the various trusts to which Xceed sold the mortgages in the first place.

It is Xceed’s expectation that these initiatives will be completed over the next several quarters. This will also convert Xceed’s interests in these mortgages to cash resulting in the majority of our $68 million of equity becoming available for new business opportunities.

Toronto-based Xceed is a provider of insured mortgages.

IE