September 11, 2009 / 10:41 AM / 8 years ago

UPDATE 1-Shareholders approve Xceed's plan to become a bank

Sept 11 (Reuters) - Insured mortgages provider Xceed Mortgage Corp XMC.TO said shareholders approved its plan to become a federally regulated Schedule 1 bank.

The shareholders also approved a change in the company’s name to Xceed Bank and Banque Xceed, the company said in a statement.

As a Schedule 1 bank, the company will get access to retail deposits that can be an additional source of funding for its mortgage originations, it said.

Xceed, which reported a third-quarter loss Thursday after four straight quarters of profit, had said it would receive regulatory approval to operate as a bank not later than the first quarter of 2010. [ID:nBNG379247]

“Continuation as a bank also will assist us in gaining approval from the Canada Housing and Mortgage Corporation to pool and sell mortgages directly to the Canada Mortgage Bond program...,” the company said.

Xceed shares, which have gained more than 56 percent in the past three months, closed at C$1.69 Thursday on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Ratul Ray Chaudhuri)

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