Toronto-based mortgage lender Street Capital Financial Corp. says it intends to apply to Canada’s Minister of Finance for approval to operate as a federally regulated Schedule I bank.
The proposed bank would primarily focus on residential mortgage lending as well as other consumer lending and related services.
Street Capital’s application requires approvals from the Office of the Superintendent of Financial Institutions (OSFI) and the Minister of Finance.
The company anticipates the application process will take an extended period of time, likely at least two years. If approved, the bank would carry on business in Canada under the name of Street Capital Bank of Canada in English and Street Capital Banque du Canada in French and its head office would be located in Toronto.
While Street Capital will continue with its current business of sourcing and funding insured and uninsured mortgages, a bank licence would allow the firm to broaden its product line into other forms of consumer lending and related services, increasing the company’s value proposition to brokers and retail customers.
Street Capital says it remains committed to the mortgage broker channel and intends to continue to operate through this channel should its application be approved.
From commencement of operations in 2008 to June 30, 2012, Street Capital says it originated and funded approximately $11.3 billion in mortgages. The company had $9.5 billion in mortgages under administration at June 30, placing it among the top mortgage underwriters operating through the mortgage broker channel in Canada.
Toronto-based Counsel Corp. (TSX:CSX) acquired Street Capital in 2011.