TORONTO, Oct. 06, 2016 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI) commented today on the impact to its business from the Federal Government’s housing reforms announced on October 3, 2016.
Mr. Rob Goodall, CEO of Atrium noted, “The reforms announced by the Federal Government relate to insured residential mortgages and will have no direct impact on Atrium. We don’t lend on insured mortgages; our primary focus has always been providing financing to real estate investors and developers. Therefore, our clients and borrowers will not be directly affected by the reforms.”
The Federal Government announced three reforms that relate to insured loans: (1) applying a more strenuous stress test effective October 17, 2016 for purchasers of residential property applying for insured mortgages; (2) from November 30, 2016 restricting residential mortgages that are eligible for government-backed insurance; and (3) consulting about lenders assuming some risk on government-insured mortgages. None of these will have a direct impact on Atrium or its clients.
About Atrium
Canada’s Premier Non-Bank Lender™
Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium’s objectives are to provide its shareholders with stable and secure dividends and preserve shareholders’ equity by lending within conservative risk parameters.
Atrium is a Mortgage Investment Corporation (MIC) as defined in the Canada Income Tax Act, so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder.
For further information about Atrium, please refer to regulatory filings available at www.sedar.com or investor information on Atrium’s website at www.atriummic.com.
Forward-Looking Statements
This news release contains forward-looking statements. This information can be identified by words such as “will,” or similar expressions suggesting future outcomes or events. Atrium believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to the uncertainty associated with accessing capital markets and the risks related to Atrium’s business, including those identified in Atrium’s annual information form for the year ended December 31, 2015 under the heading “Risk Factors” (a copy of which may be obtained at www.sedar.com). Forward-looking statements contained in this news release are made as of the date hereof and are subject to change. All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by law, Atrium undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: For further information, please contact Robert G. Goodall President and Chief Executive Officer Jeffrey D. Sherman Chief Financial Officer (416) 867-1053 [email protected] www.atriummic.com
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