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

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.

Angels in the lending world: when the bankers no longer help

Angels in the lending world: when the bankers no longer help

Where do you turn to if a traditional mortgage lender such as bank, trust company or mortgage

investment company says “no” to your borrowing needs?

Try a private lender.

Private lending is truly one of the world’s oldest businesses. For as long as organized humans

have owned or possessed anything of value, they have either borrowed money or loaned money

against the item of value. Transactions in the ancient world were normally done by and between

individual persons and not companies.

In the past 100 years, the main source of money lending became banks, corporations and

sometimes governments. However the draw back of these types of lenders is that they have strict

rules when it applies to income, credit history or type of collateral.

With the advent of email and the internet, technology has made it possible for the reappearance

of “person to person” lending, which is an exciting time for people who find it difficult to qualify

within today’s corporate controlled lending environment.

Why is a private lender easier than a bank?

Private lenders are people too. They make their lending decisions on a combination of business

sense, common sense and instinct. They have hopes, dreams and emotions just as the

borrowers do. So long as your story makes sense and so long as you have something of value,

odds are is that you may be able to borrow money.

Who are Private Lenders?

Any one who has saved money and is willing to lend it out. They could be people you already

know such as a member of your family, or someone you know at work, or perhaps someone in

business or simply a stranger off the street.

Many private lenders are hardworking people themselves, who have struggled to save money

through business or work. Many are retired persons who have accumulated wealth over their

lifetime and now choose to help others. No matter who the private lender is or how they made

their money, these individuals have made a conscious decision to help others, through the

business of lending money.

What do Private lenders use as security?

Depending on the lender, any item of value. Normally it is real estate such as buildings and land

however some lenders have lent on precious objects (ie: gold, diamonds), art, automobiles, or if

you own a company, your can even pledge your accounts receivables.

What type of lending do Private Lenders do?

You can often borrower first mortgages, second mortgages, third mortgages or even short-term/

bridge loans.

What are the rates private lenders charge?

Private lenders can charge any rate they want, however the legal limit is 60%. Normally lenders

will range from as low as 8% to as much as 18% interest. On average, you can expect to pay

between 12% and 14%. Sometimes private lenders will charge fees. Private lender rates are not

as low as bank rates but in many cases, these rates are far less than credit cards and overdraft

rates, which can be as much as 24%. And they are far cheaper than pay day loan companies

who are known to charge beyond the legal limit of 60%, sometimes as much as 400%.

The key point to understand about private lenders is that they are a potential option, when you

don’t have one.

How do I find a Private Lender?

Ask your banker

Ask your lawyer

Ask your accountant

Ask your mortgage broker

Look up in the internet under keywords “private lending”

Borrower and Lender Beware.

Although this article talks about the good things when dealing with private lenders and private

borrowers, remember that whenever you are borrowing or lending money privately, you should

always have legal representation. There are plenty of examples of problems faced by both

borrowers and lenders. For example, a borrower signs up to a private loan that has very strict

repayment terms. Or, a lender loans money and never has it paid back.

If you are a borrower, make sure you use lawyer whom you trust, to represent you, no matter how

small the transaction. If the lender says “use our lawyer”, respectfully decline and find your own

lawyer. This is your safest way to go.

If you have extra money and are interested in becoming a lender, get professional help from

either a lawyer or mortgage broker who is well versed in private lending. Make sure you get

references from your mortgage broker before you deal with them.

There is more to this subject than what you see here, so if you are interested in either lending

or borrowing, do your research first. If you have questions regarding private lending from

either a borrowing or lending perspective, call MortgageQuote Today at 403-590-6610, or visit

www.privatelender.org, home of Canada’s Private Lending Network.

What type of lending do Private Lenders do?

You can often borrower first mortgages, second mortgages, third mortgages or even short-term/

bridge loans.

What are the rates private lenders charge?

Private lenders can charge any rate they want, however the legal limit is 60%. Normally lenders

will range from as low as 8% to as much as 18% interest. On average, you can expect to pay

between 12% and 14%. Sometimes private lenders will charge fees. Private lender rates are not

as low as bank rates but in many cases, these rates are far less than credit cards and overdraft

rates, which can be as much as 24%. And they are far cheaper than pay day loan companies

who are known to charge beyond the legal limit of 60%, sometimes as much as 400%.

The key point to understand about private lenders is that they are a potential option, when you

don’t have one.

How do I find a Private Lender?

Ask your banker

Ask your lawyer

Ask your accountant

Ask your mortgage broker

Look up in the internet under keywords “private lending”

Borrower and Lender Beware.

Although this article talks about the good things when dealing with private lenders and private

borrowers, remember that whenever you are borrowing or lending money privately, you should

always have legal representation. There are plenty of examples of problems faced by both

borrowers and lenders. For example, a borrower signs up to a private loan that has very strict

repayment terms. Or, a lender loans money and never has it paid back.

If you are a borrower, make sure you use lawyer whom you trust, to represent you, no matter how

small the transaction. If the lender says “use our lawyer”, respectfully decline and find your own

lawyer. This is your safest way to go.

If you have extra money and are interested in becoming a lender, get professional help from

either a lawyer or mortgage broker who is well versed in private lending. Make sure you get

references from your mortgage broker before you deal with them.

There is more to this subject than what you see here, so if you are interested in either lending

or borrowing, do your research first. If you have questions regarding private lending from

either a borrowing or lending perspective, Contact MortgageQuote.ca 1-866-948-7283 for details. Or Apply Now for your mortgage.

MQCC™ History

In 2006, the MQCC™ developed what is today, the world's first internationally recognized, energy-efficient, resource-efficient, quantum computing-ready, bespoke, unified, defense standard, military/law enforcement-grade, turn-key, plug 'n play (PnP), end-to-end (E2E), interoperable, "secure, risk-based meta-operating system".  A functional system built in accordance to the MQCC Artificial Algorithmic Intelligent (AAI™) brand of self-learning artificial intelligence (AI) systems-standards and pioneering MQCC "blockchain" principles,  designed to increase profits, increase cost savings and reduce expenditure through real-time assurance of statutory, regulatory and process conformity of both regulatory (regulator) and regulated (regulatee) organizations, within any industry sector.

Patent-pending and proprietary, continually improving, world-class MQCC systems and technology creates measurable levels of efficiency, quality, trust & confidence for the three critical risk management functions of a regulated and non-regulated financial sector company:  "Macro" functions: Business (Operations), Enterprise (Conformity) and Governance (Audit); and "Micro" functions: processes. All within a transparent, "blockchain" principles-based, proof-of-work" organization conformity meta-operating system consisting of integrated internal controls for risk management, governance, legal and operational processes.

In good company. The MQCC™ is the only organization in Canada's finance sector, whose risk based, unified Quality Management System technology is built on Standards that are both: recognized by 163 countries, including the Canadian Federal Government and all finance sector regulators; and registered thereto, by an Accredited Certification Body: "to safeguard consumers and users of [financial] products and services ..."