Newspaper article The Canadian Press

Laurentian Bank Says Mortgage Issues Now Resolved

Newspaper article The Canadian Press

Laurentian Bank Says Mortgage Issues Now Resolved

Article excerpt

Laurentian Bank: mortgage issues resolved

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MONTREAL - Laurentian Bank says it has successfully resolved issues related to mortgage loans sold to an unnamed lender.

Laurentian said in December that an audit found that the mortgages in question did not meet documentation and eligibility requirements and would need to buy back as much as $304 million in mortgages.

Laurentian revised that amount a month later to $392 million and said it had repurchased $180 million in loans, with another $88 million expected by the end of the fiscal second quarter.

As part of an agreement with the lender, the bank will repurchase an additional $115 million of ineligible mortgages during the third quarter of 2018, slightly lower than the bank's initial assessment.

The bank says any future purchases by the lender will be subject to terms and conditions to be agreed upon at the time of each purchase, including a pre-funding audit of the mortgages.

Laurentian's chief executive Francois Desjardins said last December that the issues largely involved loans that were misflagged and it found no evidence of wilful wrongdoing. …

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