UM Financial was one of the first companies in Canada to offer so-called Islamic financing to Muslims who believe that sharia, or Islamic law, prohibitions against usury include interest on things such as mortgages.
UM would buy a property then lease it to a client so they were paying rent instead of interest. Some homeowners complained that the firm would also charge extra fees.
The company had $50 million in financial backing from Central 1 Credit Union of which almost $29 million is outstanding.
Qayum Mian knew he was paying a premium on his Markham house for the seven years he used UM Financial — he estimated up to 2 percentage points more than if he’d gone through a bank — but was happy to pay the price “because my conscience was satisfied.”
Wednesday, October 19, 2011
Okay, here's my belly laugh of the day:"Sharia-compliant mortgage lender in receivership":