TORONTO, ON - InterBay Funding Corp., a national wholesale lender specializing in small commercial real estate financing, announced today it will no longer originate commercial mortgages in Canada. 

Dean West, Vice President Canadian Division, says the move to cease commercial lending is a result of the continuing weakness in the Capital Markets.

"The typical process of originating loans and selling the loan in a security instrument has changed dramatically since the fall of 2007.

Despite high demand for small commercial mortgage financing and a combination of favourable conditions (strong real estate values, low interest rates, strong employment stats, and performing mortgages) the investment markets remain sensitive to the sub-prime problems that have touched markets worldwide." West said.

"With that disconnect, and the prospect of a lengthy recovery, it was decided that originations should cease."

"I am extremely proud of our Canadian Interbay team and the sequent loss of these talented people is a very sad occasion."

Ancillary department, Interbay Loan Servicing Corporation will continue servicing operations from the Toronto office.