HSBC Finance Canada‘s mortgage subsidiary is now the latest casualty of the North American subprime/liquidity crisis.
HSBC Finance Mortgages Inc., which handled HSBC’s alternative (non-prime) mortgages in Canada, has “ceased operations” as of yesterday.
The news follows a September 21 announcement that HSBC was shuttering its U.S. subprime operations.
This move will not affect HSBC’s prime mortgage business in Canada, which remains in full operation.
We wish all HSBC Finance employees the very best. They are a class team of professionals.
Visited 2 times, 1 visit(s) today
Last modified: October 3, 2007
Can anyone provide a link/source to further information regarding HSBC’s announcement?
AC, The mass media hasn’t picked up the story yet and HSBC hasn’t issued a press release that I know of. We confirmed from industry sources.
Rob, Co-Ed. CMT
I can confirm that as HSBC Financial Corporation Limited positions itself for continued long-term success, some adjustments have been made to its business. HSBC Financial has made a decision to close its non-prime broker originated mortgage business to more closely align its business with the strategy that has been set for HSBC Finance in North America. This is not a core business for HSBC Financial and it has decided to focus on direct relationships with its clients. HSBC Finance is committed to continuing to serve the needs of its existing customers and will continue to offer mortgages directly to customers. However, as of October 2 HSBC Mortgage Services has stopped accepting new loan applications from mortgage brokers.
I hope this clarification is useful.
Hi Sharon,
Many thanks for the additional information. I know many CMT readers appreciated it.
Rob, Co-Ed. CMT
How come it was never in the news that HSBC Finance in Canada closed off more branches and laid off more people?
Hi Ex,
Are you asking why the above news about HSBC Finance was never picked up in more the press? Or are you talking about developments that have transpired following the above news?
If you’re talking about a recent development, and we missed it, please do let us know!
Thanks,
Rob
HSBC Finance Inc. has just advised us that they would be sending letters out in the next few weeks letting customers know that they must find other financial assistance. They may offer a one year extenstion with a 2% increase in interest to steller customers. All others will be given a time frame to pay off existing date of face foreclosure.