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MortgageQuote Canada Corp. (www.mortgagequote.ca)

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Quality Management-in-Finance.

Tuesday, 11 October 2016

The Benefits of ISO 9001:2015 (Quality Management-in-Finance) or; Non-Compliance versus Statutory and Regulatory Compliance versus Certified Statutory, Regulatory and Process Compliance (aka Quality Management): in Pictures for EVERYONE TO UNDERSTAND

Operating in a Non-Regulated Environment:
This is the original state of the Canadian banking and financial system, in Year 1, hundreds of years ago. In the beginning, the finance sector operated without (or with little) regulatory or statutory compliance requirements; like the teeth you find in a shark tank or dragon's den. "It's painful but due to the sharp edges, it is fast, so the pain does not last long." People lost money due to predation and nonconformity caused by the absence statutory, regulatory and process requirements.

Unverified Operations within a Regulated Environment:
This is the current state of the Canadian banking and financial system, with the exception of few companies, like MortgageQuote Canada Corp. After the introduction of statutory and regulatory compliance, people still lost money. Predation still exists, although it is often up to the consumer to figure out that they have been "had". Banks and finance company's say, "hey, we are regulatory and statutory compliant because we have our licenses to operate." Why? Due to the absence of verification.

Just because the Department of Motor Vehicles issued you a license to drive a car, does not mean that you drive responsibly on an ongoing basis. Obtaining a license to operate does not mean you are operating effectively, safely or within the statutory and regulatory requirements.

Market realities prove that getting a license is simply not "good enough". The ability to obtain a license to operate in a regulated industry is the minimum standard for entry; diluted for the market, as a whole. The fact that an organization is licensed does not tell the customers that the licensed entity is actually working in accordance with the licensing requirements.

Regulators will admit: "after we issue a license to operate, the only time we find out bad things are happening is, if someone lodges a complaint or something worse happens". Indeed, ask any regulated entity: bank, mortgage broker, syndicated lender, investment advisor: if you get audited tomorrow by your regulator -where they will go over all of your business operations, including your client and transaction records, pursuant to your requirements of licensing; will you be able to sleep well at night, tonight?" Most respondents will say "no".

Look at the billions of dollars in contingent liabilities that Canada's top 5 banks must account for, EACH YEAR in their ANNUAL REPORTS. This does not include the hundreds of millions of dollars paid by mortgage brokers, investment advisors, insurance brokers and other finance industry sector professionals who fail to operate in a statutory and regulatory manner.

This systemic weakness is evidenced by the sheer dollar volume of paid and pending contingent liabilities; into the billions on a per annum basis. Nor does it mean that all non-statutory and non-regulatory processes are effective enough to ensure that statutory and regulatory non-compliance events are prevented.

Additionally, merely demonstrating that an organization has employees who fulfill the role of compliance officer does not mean that the organization has implemented an integrated, risk-based process approach to ensure certifiable levels of compliance to all statutory, regulatory and procedural requirements. Nor does it mean that the organization has a system of preventive measures to ensure statutory, regulatory and process nonconformity (employee fraud, consumer predation, systems breakdown) do not occur.


Verified Operations within a Regulated Environment aka Certified Quality Management:
This is MortgageQuote Canada Corp. Canada's only finance sector company, whose integrated Quality Management System is certified to ISO 9001:2015 for the scope of Mortgage Banking ("lending" in Canada) and Mortgage Brokerage Service. Customers and stakeholders can trust the company to function in an environment that is statutory, regulatory and process compliant.

What does this result?
  • Cut costs, through improved systems and processes
  • Increase customer satisfaction, through improved safety, quality and processes
  • Near zero (0%) levels of statutory and regulatory non-conformity
  • Consumer Confidence
MortgageQuote Canada Corp. undergoes a 2 part process. Through implementation and certification of the internationally recognized, tried and tested quality management system namely, ISO 9001:2015.  Developed by the International Organization for Standardization (ISO), based in Geneva, Switzerland. ISO is an independent, non-governmental international organization with a membership of 163 national standards bodies. As Canadians, we are founding members.

Implementation Aspect:

The ISO 9001:2015 Quality Management System standard specifies requirements for a quality management system when an organization:

a) needs to demonstrate its ability to consistently provide products and services that meet customer and applicable statutory and regulatory requirements, and

b) aims to enhance customer satisfaction through the effective application of the system, including processes for improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.

Certification Aspect:

ISO states: "Certification [is] the provision by an independent body [3rd party] of written assurance (a certificate) that the product, service or system in question meets specific requirements. [Namely, statutory, regulatory or process compliance]. Certification can be a useful tool to add credibility, by demonstrating that your product or service meets the expectations of your customers. For some industries, certification is a legal or contractual requirement."

Since 2008, MortgageQuote Canada Corp. is audited twice per year, by two different third-party auditing firms: an internal auditor and an external auditor. The external auditor is a Standards Council of Canada-Accredited Management Systems Certification Body.

The Standards Council of Canada (SCC) is a federal Crown corporation. Its mandate is to promote efficient and effective standardization in Canada. The organization reports to Parliament through the Minister of Innovation, Science and Economic Development Canada and oversees Canada's national standardization network. According to the SCC: "Standards help to ensure better, safer and more efficient methods and products."

Proven History:

Over 25 years of global history is not wrong. This international Quality Management Technology is what keeps you safe in a hospital; keeps you safe while flying and makes sure your light switch operates each time you need to turn it on.

Maybe it's about time you tell your bankers, lenders, mortgage brokers and investment advisors to give you the same degree of quality, don't you think?

Welcome to the Future of Finance

Financial Regulatory Compliance & Operations Technology & Financial Products-Services

MortgageQuote Canada Corp. is the world leader in providing real-time accountable, OSFI- (Canada), OCC- (USA) and Other Regulatory Body (RECA/FICOM/FSCO/MSC - Canada), certifiably compliant, origination, operational processing, audit & reporting technology to the finance sector.

In 2006, we developed what is today, the world's first bespoke ISO 9001:2015 certified, litigation tested, integrated Quality Management System designed to enable continual statutory and regulatory compliance and to prevent statutory and regulatory nonconformity events; for the following scope: "provision of mortgage banking (lending in Canada) and mortgage brokerage services".
Our continually improving system creates measurable levels of efficiency, quality, trust & confidence for the three critical risk management functions of a regulated financial sector company: Business (Operations), Enterprise (Compliance) and Governance (Audit).

"Making Banks Better"

If you have any questions, contact us at info@mortgagequote.ca. Ask for Anoop Bungay or one of his team members.

Copyright 2016 MortgageQuote Canada Corp. All Rights Reserved.

Wednesday, 5 October 2016

If your Bank, Mortgage Broker or Investment Advisor is not certified for Quality, then your Bank, Mortgage Broker or Investment Advisor is not Quality Certified.

If quality is important to you and your money is important to you, then you must insist that your bank, mortgage broker or financial advisor operates a quality business. What is Quality? A very simple definition from google is "the standard of something as measured against other things of a similar kind; the degree of excellence of something".

What is "Quality in a Financial Context"? This is also very simple; how excellent is your bank, mortgage broker or investment advisor, to you? As in all things of a service or product nature, "you get what you pay for". Given all the bank interest charges, account fees, mortgage broker charges, investment advisor fees, mutual fund fees and other expenses, do you feel you are getting what you pay for? Do you feel that your bank, mortgage broker or investment advisor is operating their business in a manner that delivers you a "high quality solution"? Is your bank difficult to deal with? Is your mortgage approval taking too long, or has "last minute conditions that your mortgage broker did not properly explain to you"; is your investment advisor or mutual fund company charging you more in fees than you are actually earning in your investments?

Ask your bank, mortgage broker or investment advisor if they are running a Quality Certified business. Only a Quality Certified business is able to provide you with financial products and services that are: safe, reliable and of good quality.

When it comes to YOUR money, should you not expect that to be your minimum standard for deciding to work with a bank, mortgage broker or investment advisor?

MortgageQuote Canada Corp. is the world leader in providing real-time accountable, OSFI- (Canada), OCC- (USA) and Other Regulatory Body (RECA/FICOM/FSCO/MSC - Canada), certifiably compliant, origination, operational processing, audit & reporting technology to the finance sector.

In 2006, we developed what is today, the world's first bespoke ISO 9001:2015 certified, litigation tested, integrated Quality Management System designed to enable continual statutory and regulatory compliance and to prevent statutory and regulatory nonconformity events; for the following scope: "provision of mortgage banking (lending in Canada) and mortgage brokerage services".

Our continually improving system creates measurable levels of efficiency, quality, trust & confidence for the three critical risk management functions of a regulated financial sector company: Business (Operations), Enterprise (Compliance) and Governance (Audit).

If you are looking for Quality Certified financial products and services, namely those that are safe, reliable and good quality for you, then contact us. We have been waiting for you. Visit www.mortgagequote.ca to learn more.

Wednesday, 14 September 2016

MortgageQuote Canada Corp.: ISO 9001:2015 or the Wells Fargo Online Financial Services Group & Home Capital Group: Balanced Scorecard Approach? What does over 10 Years of History Tell Us?

Conclusion: There is no contest. One is not the same as the other. And ISO 9001:2015 wins.
The shareholders of Wells Fargo and it's Board should consider licensing MortgageQuote's certifiable, regulatory compliant, integrated Quality Management System technology, immediately. It will be long term money well spent.

Some Canadian Mortgage Companies or Financial Services rely on the Balanced Scorecard at the Governance level; for example: Home Capital Group, which in 2015, had an anonymous "whistleblower" tip lead to the exposure of a massive 45 Licensed mortgage broker fraud related to $960M of mortgage originations.

 If it happens in two places, it happens in three places.

The Balanced Scorecard concept is a ostensibly about "measurement". If the Balanced Scorecard can not even allow for the measurement of fraud, regulatory noncompliance or nonconformity in finance - it is proven to be useless for at least some finance companies

For the finance sector, the Balance Scorecard appears to function as merely an academic construct born out of a thesis, supported by a 12 month study (Kaplan et. al. 1992). Deemed by some individual or consultant as appropriate for use in the very serious business of finance. Any modifications to the original model clearly did not work for Wells Fargo or Home Capital Group.

How do you not see 2M fake accounts? Or 45 fraudulent LICENSED mortgage brokers. What good is the measurement system...why would you need to wait for the selfless, charitable generosity of a whistleblower.....and for that matter...what good is licensing?

Company 1 - ISO 9000 Approach:

MortgageQuote Canada Corp.: ISO 9000 Family of Quality Management Standards

Abstract:

The MortgageQuote Canada Corp. (MortgageQuote) ISO 9001:2015 certified, integrated Quality Management System is designed to prevent statutory and regulatory nonconformity events.

2016 Outcome

After 10 years of compliance and 8 years of certification to an ISO 9001 Quality Management System, MortgageQuote is operating at 6 six sigma. Less than 1 defects (nonconformity) occurring out of a million opportunities.


Company 2 - Balanced Scorecard Approach

Wells Fargo and Balanced Scorecard

Abstract:

Source: Harvard (Case Study: Wells Fargo Online Financial Services (A) PUBLICATION DATE: June 12, 1998 PRODUCT #: 198146-PDF-ENG)

Wells Fargo, the industry leader in electronic banking, has implemented a Balanced Scorecard in its online financial services group (OFS) to track and measure performance. The OFS group develops and supports services that allow existing and future banking customers to perform transactions via the Internet. The new division faces rapid change and must invest heavily in new technology and in the development of innovative products and services. OFS was finding it difficult to balance the need for a clearly articulated strategy and measurable objectives with the flexibility required in its dynamic environment. Wells Fargo had a culture that embraced financial metrics. Yet OFS management believed that its business could not be measured and evaluated on the basis of financial metrics alone. For example, the group was not yet profitable, yet it provided a critical component to the bank's long-term strategy. The OFS group believed that the Balanced Scorecard would allow them to develop a set of integrated, multidimensional measures to assess performance against its goals and to communicate and update its strategy in a rapidly changing environment.

2016 Outcome

Wells Fargo Fined $185 Million for Fraudulently Opening Accounts. 

They created fake email accounts to sign up customers for online banking services. (The OFS - Online Financial Services Group). Source

BoingBoing.net states: 5,300 Wells Fargo employees created 2 million phony bank accounts and racked up huge fees, raking in commissions from their employer for being such great salespeople for the bank's services; meanwhile, the fees associated with the 2 million fake accounts created the appearance of much greater earnings for the bank, which it trumpeted to its investors.

Wells Fargo says that it has been rooting out employees who ran this con for the past two years, having caught 5,300 of them so far (the bank employs 265,000 people). The fake accounts -- savings, checking, credit/debit cards -- were opened in the names of existing Wells Fargo customers, who had their accounts raided to create balances in the new accounts, and were then hit with fees that cleaned them out.

[Wells Fargo] bank is paying a $185M fine and reimbursing known victims to the tune of $5M.



Friday, 9 September 2016

Investors: Invest in Financial Sector Companies that have CERTIFIABLE Quality Management Systems that Prevent Home Capital Group and Wells Fargo Bank Situations




Team;

Do not invest in financial sector companies unless their Quality Management Systems are certifiable to function in accordance with Statutory and Regulatory requirements

Tell the finance sector company that you invest into (bank, lender, brokerage firm, wealth management advisor, discretionary funds manager), to license MortgageQuote Canada Corp.'s regulatory compliant, internationally accepted, ISO 9001:2015 certifiable Operations and Quality Management Systems technology for finance sector institutions and corporations.

Do not suffer the same fate as investor's who invested million's of dollars in Home Capital Group Inc. (whose shares have not recovered from a high of C$39.60 down to approximately C$28.00 - ove the course of the last 18 months) or Wells Fargo Bank (Whose have not recovered from a high of  USD$57.94 down to USD$48.72 over the course of the last 18 months).

Don't rely on "trumped up statements in annual reports to make you feel happy and then find out the company just got fined $160,000,000.00 USD for poor governance".

Welcome to the Future of Finance™


MortgageQuote Canada Corp.

Financial Regulatory Compliance & Operations Technology - Mortgages & Investments



MortgageQuote Canada Corp. (MQCC) is the world leader in providing real-time accountable, OSFI- (Canada), OCC- (USA) and Other Regulatory certifiably compliant, origination, operational processing, audit & reporting technology to the finance sector. In 2006, we developed what is today, the world's first bespoke ISO 9001:2015 certified, litigation tested, integrated Quality Management System designed to prevent regulatory non-conformance events for the scope of: "provision of mortgage banking (lending in Canada) and mortgage brokerage services". Our system creates certifiable levels of efficiency, quality, trust & confidence for the three critical risk management functions of a regulated financial sector company: Business (Operations) Level, Enterprise (Compliance) Level and Governance (Audit) Level. 


THIS is what we use to lend money, invest money and manage money. What does your bank or financial company use? 

What Problem does MortgageQuote Solve? See below for this latest edition of PROBLEMS IN FINANCIAL SERVICES REGULATORY COMPLIANCE:


Wells Fargo - Major Investor: Warren Buffet

  • 5,300 Wells Fargo employees created 2 million phony bank accounts and racked up huge fees, raking in commissions from their employer for being such great salespeople for the bank's services; meanwhile, the fees associated with the 2 million fake accounts created the appearance of much greater earnings for the bank, which it trumpeted to its investors.  "BoingBoing.net".
Whatever financial quality management and operating systems that Wells Fargo had running, they were clearly poor and a waste of Warren Buffet's and his fellow shareholder's momey. The Wells Fargo Directors must also be wondering.

The same type of problem (this time with mortgages, in terms of fraud and document verification and origination) happened to HomeEquity Bank

Home Capital Group Inc. - Long Time Investor: Mawer Management


Home Capital Group Inc. began suspending mortgage brokers after its board of directors received a letter from an anonymous whistle-blower last fall pointing it to problems with some of its mortgages, company officials confirmed Thursday.


The company, which operates as one of Canada’s largest alternative mortgage lenders through its subsidiary, Home Trust, revealed it hired an external investigator and launched a probe into its mortgages, finding evidence that some borrowers had submitted fake employment letters. In many cases, the borrowers actually worked at the companies listed in their mortgage applications, but claimed they made more money than they actually did, which allowed them to qualify for larger mortgages at better interest rates.
Home Capital said it ultimately cut ties with 45 brokers, the majority of whom worked for just two brokerages. In total, the brokers contributed more than $960-million to the company’s mortgage originations last year, with the bulk of the business in the company’s portfolio of insured mortgages.
Jeff Mo, portfolio manager at Mawer Investment Management Ltd., a long-time Home Capital investor. “Is management’s credibility damaged because of this? I would say slightly.... "
Source: The Globe and Mail
The price of Home Capital Group Inc. has gone down significantly over the past year.
Whatever financial quality management and operating systems that Home Capital Group had running, they were clearly insufficient for their investors and shareholder's money.  
If you invest in a financial company, learn from us. Visit www.mortgagequote.ca to learn more.

Indeed, we, at MortgageQuote wonder: "who is the next Canadian version of Wells Fargo"?

Summary of Article: 

Ask these three questions before you invest in a Financial Sector Company:

1) Is your end-to-end, total business operations certified to ISO 9001:2015 standards? If not, why not?
2) Are you able to provide real-time accountability of every transaction, at every stage, from origination to funding to servicing?
3) Is a 3rd party auditor permitted to audit your business processes, annually to ensure that you are working in accordance with statutory, regulatory and process requirements?

If the answer is NO to any one of three, then DO NOT INVEST unless you ask them more questions about how they operate and they answer same, to your satisfaction. Contact MortgageQuote.ca to learn more.
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Sunday, 3 April 2016

Don't Believe the BS: The "Business" of Risk Management for Investors in Financial Products

To all: MortgageQuote Existing and Future Private Equity Mortgage (PEMTM) investor-lenders

Recently seen on a publicly posted website that belongs to a government and securities commission regulated mortgage investment company; in an answer to a potential investor's question regarding guaranteeing of principal and risk:

IS MY PRINCIPAL GUARANTEED?
No. Your investment is secured by the mortgages held by the fund, and there is always risk associated with this type of investment. It is our business to manage risk on behalf of our investors and we have a strong record of successful risk management.

Well, at MortgageQuote, we have always preached about the risks of investing your money in any mortgage investment that is not directly registered on the underlying real estate - AVOID IT. Investing in the shares of a mortgage investment company is no less risky than investing in the shares of a company listed on a financial exchange. You are really placing your trust in the people who RUN THE COMPANY; you do not get the benefit of the safety of the underlying mortgage investment and there are many companies who have good mortgage investments but go into CCAA or CHAPTER 11 because not of the risk of the underlying investments but the RISK OF POOR BUSINESS MANAGEMENT. (Contact us if you have questions about this paragraph).

Anyhow, the point is this:

ANY COMPANY WHO SAYS THEY ARE IN THE BUSINESS TO MANAGE RISK ON BEHALF OF INVESTORS should also have the supporting third-party, objective proof to show HOW the business manages risk. One internationally recognized and certifiable approach is implementing an ISO 9001 quality management system. The ISO 9001 quality management system enables businesses to prevent and correct unwanted actions and outcomes. The system is a nothing less than a risk management system.

All savvy investors know that any company in the finance industry whose management purports to be in the BUSINESS OF MANAGING RISK, is required to let the audience know what tested, certifiable, auditable and established risk-management system they have in place to effect the risk management outcome. If not, the savvy investor knows that it's only BS: "Business Selling-a-line."

Conclusion:

FOR COMPANIES WHO ADVERTISE FINANCIAL INVESTMENTS, IT IS NOT SUFFICIENT TO REPRESENT BY MERELY STATING YOU ARE MANAGING RISK, IT IS INCUMBENT UPON THE COMPANY TO ADVERTISE PROOF OF HOW THEY MANAGE RISK - IN A MANNER THAT THE INVESTOR CAN VERIFY WITH A THIRD PARTY SOURCE BEFORE DECIDING TO INVEST.

MortgageQuote Canada Corp. is your answer.

(1) FOR MORTGAGE INVESTOR-LENDERS, IS MORTGAGEQUOTE IN THE BUSINESS OF MANAGING RISK?

YES

(2) HOW DOES MORTGAGEQUOTE MANAGE RISK?

CERTIFICATION TO ISO 9001:2008 QUALITY MANAGEMENT SYSTEM (QMS)

(3) CAN A PROSPECTIVE OR EXISTING LENDER OBTAIN THIRD-PARTY VALIDATION OF MORTGAGEQUOTE'S (QMS)

YES (HERE) - OR EMAIL US


#1 in Canada for Quality Management in the Finance Industry: serving the needs of borrowers, brokers and investor-lenders (proof).

Learn more at investor.mortgagequote.ca

Saturday, 23 January 2016

Risk Management for Mortgage Industry Professionals Trading in Private Mortgages



For a traditional licensed mortgage brokerage firm, dealing in private mortgages or dealing with private mortgage investor-lenders can be very lucrative, yet there is substantial risk associated with such transactions, if not done in a 100% compliant manner.

Need proof of the risk to a licensed mortgage brokerage? Visit the following links to see the regulatory enforcement activities; not all contain items related to private mortgages. Many private mortgage transaction complaints are "dealt" with the mortgage broker and complainants directly, before a statement of claim is filed or a regulatory complaint is submitted. 

Alberta: Case Summaries
British Columbia: Enforcement

Time and again we have cautioned experienced mortgage industry members (owner/officers/directors/shareholders of mortgage brokerage firms) to rely upon MortgageQuote to help reduce the risk of financial and reputation liability, when dealing with private mortgages (transactions or investor-lenders). We accomplish this by having the licensed mortgage agents/employees (LMAE) forward their private mortgage applications or prospective private mortgage investor-lenders, to MortgageQuote for processing. We call it: PRIVATE SAFETM.
 
PRIVATE SAFETM is a certified quality managed service, designed specifically for licensed mortgage brokerages to help them reduce the risk of liability when dealing with: private mortgage applications or private mortgage investor-lenders. The service does two things: 

1 - processes a licensed mortgage brokerages non-standard (private) mortgage applications in a 100% regulatory compliant & Errors and Omissions compliant environment. Processing includes "deal" receipt, data compilation, pre-underwriting, presentation & marketing to authenticated private equity mortgage investor-lenders.

2 - maintains and manages business relationships with "legislatively defined" private investor-lenders. 

PRIVATE SAFETM Components:
  • Dealing with private investor-lenders in matters relating to private mortgages
  • Marketing mortgage applications to authenticated private investor-lenders
  • Communicating with the private investor-lender
  • Preparing application data for private investor-lender underwriting
  • Preparing commitment letters
  • Transmitting and maintaining applicant non-public data in a secure environment
  • Advising the private investor-lender
  • Working in a certified, quality managed environment
  • Maintaining Errors and Omissions insurance designed specifically for private real estate finance brokerage
  • Operating processes and controls are subject to continual improvement and audited for effectiveness 2 times per year by 3rd-party internal and external auditors
PRIVATE SAFETM is activated when licensed mortgage agents/employees forward their private mortgage requests or prospective private mortgage investor-lender's to MortgageQuote Canada Corp.

Reduction of Exposure to Liability:

In cases where a mortgage investor-lender is known to a licensed mortgage agent/employee, there is no practical way for a traditional mortgage brokerage firm to fulfill it's regulatory (or legal) obligations to both a "legislatively defined" private lender and retail mortgage applicant because at the least, a private lender would need the LMAE's advice. While it is possible that a mortgage brokerage may permit its agents/employees to ask their mortgage applicants to waive their right to receive advice, this may not be well-received by the customer, given that the agent presumably has been working with the applicant for some time prior to making the decision to approach private financing sources.

For example, in Alberta legislation, a private lender is defined as "any persons NOT engaged in the business of making loans secured with mortgages". Given this definition, any mortgage brokerage who's agents/employees represent a private lender, must ensure that the agent correctly provides a higher standard of care to the private lender because the private lender is deemed "not to be in the business of making loans secured with mortgages". Given the inexperience, there is an expectation that the private lender will rely upon the LMAE to provide advice relating to the transaction. The moment the LMAE provides advice to the private lender, the LMAE cannot act for the borrower, nor take the role of an intermediary for both the private lender and the borrower. Other jurisdictions in Canada provide similar definitions.

While it may work in the real estate business, we do not advise mortgage broker firms to permit multiple agents in the same office to work on the same file, where one represents a private lender and the other represents the borrower.

For example, in Alberta, the regulations are very clear:

Obligations to a Lender Client 
73(1)Mortgage brokerages that represent lenders in a mortgage deal must enter into written service agreements with lender clients.

Similar rules exist in other jurisdictions in Canada, including BC and Ontario. The rule applies at a Brokerage level and not at an agent/employee level. While some obligations may be waived in writing by a lender client, there have been cases where lenders (or borrowers) have waived their rights and, at a later time (usually if a "deal goes bad"), have asserted that they were not aware of what they were doing when they signed the waiver. Further, the lender (or borrower) may claim that they were recommended to sign a waiver, without being offered the requisite legal counsel; or the lender (or borrower) may claim that they simply did not fully understand what the licensed mortgage broker was attempting to do. This type of misunderstanding may occur more frequently when dealing in private mortgages with persons who are "not in the business of making loans secured with mortgages", namely, private lenders.

By working with MortgageQuote on your private mortgage transactions (or private mortgage investor-lenders), the limited liability benefits of an arm's length relationship between different entities (the borrowing agent and the lending agent) more often exceeds the financial benefits gained from participating in a non-arms length manner. 

Additionally, most mortgage brokerages do not have the resources to implement effective or 3rd party-validated, "ethical walls"; ensuring isolation of communication and data between the agent for the private lender and the agent for the borrower. Moreover, given that the private lender would need professional mortgage advice, it stands to follow that private lender's agent would be paid a fee for providing advice to the private lender. The mortgage brokerage firm receives a fee when its agents complete a transaction and if the firm's agents act for both the lender and the borrower, additional perceived conflicts of interest may arise. 

MortgageQuote Private Mortgage Training Programs for Licensed Mortgage Brokerage Firms

Visit academy.mortgagequote.ca to learn about training programs designed for licensed mortgage brokerages who want to ensure their licensed agents/employees understand the generally accepted practice when dealing in private mortgages (transactions or investor-lenders).

To set up PRIVATE SAFETM for your licensed brokerage, or to setup a customized private mortgage training program, please email: underwriting[at]mortgagequote.ca.