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

To all: MortgageQuote Existing and Future Private Equity Mortgage (PEM^TM) 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

Why is my mortgage broker sending me to MortgageQuote.ca?

I can answer your question on behalf of  [mortage broker]  My name is Anoop Bungay and I am President of MortgageQuote Canada Corp. (www.mortgagequote.ca). 

Our firm description (found on our website main page):

MortgageQuote.ca is a Canadian mortgage broker and national agent for privatemortgagees.com, the organization of Accredited Class^® private mortgage investors and non-bank lenders. We address the realities of the "new normal" in the Canadian mortgage marketplace, now that traditional (mainstream) lender's are not as helpful as they once were and traditional mortgage brokers are limited to an increasingly reduced lender pool, with little to differentiate one another. Our solution is to bypass the Canadian banking system and provide institutional and private (non-bank) mortgage and nonmortgage^© solutions for quality-minded borrowers, licensed brokers and Accredited Class^® investors. Service in Alberta (AB) , British Columbia (BC), Ontario (ON) and select jurisdictions nationally and internationally.  

In your case, (questioner's name), your mortgage situation is absolutely different from what traditional lenders are willing to consider due to issues including location, nature of property, current condition of property, nature of transaction (renovation/construction). Moreover, with the new bank rules imposed by the federal government (called B-20 look it up internet), traditional lenders are required to be more cautious in all lending situations, partly in order to ensure that Canada does not re-live the events of the great credit crisis of the 2000's.

As you know, [your mortgage broker] works with [Mortgage brokerage company which has a national network and works with over 85 lenders nationally.

The problem [your mortgage broker] is facing is that your mortgage situation is so unique that even she is unable to find a lender within her 85+ system of lenders and that's where we come in.

Either myself or one of my team members will t-up with you by phone in order to say "hi" and answer any initial questions that you might have. From there, we can sketch out a solution.

This is an absolutely custom service that no bank or traditional lender could ever do and it is our pleasure to help find a solution that works for you.

2012 - Borrower-Driven Global Economic Stimulus

2012 brings in new and innovative mortgage solutions for homeowners and investors alike. There is also an understanding by lenders of their role in both the local and global marketplace, and the lender's role in helping to stimulate the economy both in a local and global sense. Mortgage financing transactions help effect economic activity since real estate purchases are very large in dollar volume and real estate projects have the potential to create far more jobs and economic spinoff's than other business projects. Take advantage of the capital opportunities that are available from your lender, today.

Many Canadian lenders are sitting on surplus cash because of the strong Canadian economic climate and the recent reduced corporate business tax. If you have equity in your current real estate or have at least 25% cash to put down towards a real estate purchase transaction  and your lender is not lending you money - for whatever reason - then go find another lender. If you have hired the services of a mortgage brokerage firm and they cannot help you, then go find a new mortgage broker.

For active borrowers, both retail and investor, 2012 will be a great year to borrow money from lenders. Do it for your yourself, do it for your family, do it for your local economy, do it for your country and in some way, you will have done it for the global economy.

One more thing, for Canadians, 2012 is the Year of the Accredited Private Lender (APL); "the highest standard of "quality-in-lending" for the equity mortgage borrowing community". Learn more about the APL and why they are important to you at www.privatelender.org.

Email us at info@mortgagequote.ca if you have any questions or comments.