Chapter 16: Choosing a Lender

Question 1

List three examples of an MIE.

Answer 1

MICs: Atrium, CMI, MCAN, AP Capital, Timbercreek Financial, etc.
Private lenders: individual investors and syndicated mortgages

Question 2

List three examples of an MFC.

Answer 2

First National, MCAP, Paradigm Quest, Merix, etc.

Question 3

What is the broker channel?

Answer 3

The broker channel refers to lenders that use mortgage brokerages to source business, either exclusively or in addition to sourcing business directly from consumers. Chartered banks, credit unions and MICs that have a broker channel will do both, while MFCs and private lenders will rely on mortgage brokerages exclusively.

Question 4

What is a monoline lender?

Answer 4

A monoline lender is a non-bank lender that does not take deposits, have store fronts, or provide other non-lending products. Its sole business is lending. Mono is a prefix that means one, so you can think of this as a one type of product, or line, lender. Monoline lenders are an example of an MFC.

Question 5

What information is typically found in a lender’s rate sheet?

Answer 5

The rates for each mortgage product as well as the necessary credit score and loan to value

Question 6

What should a mortgage agent do if he or she is unsure if a lender will approve his or her client’s application?

Answer 6

Contact the Lender’s BDM for clarification.

Question 7

Which factors are the least important for a Mortgage Agent when choosing a Lender?

(2)

Answer 7

Finder’s Fees: if everything else is equal and two or more Lenders are appropriate for the client, which of those Lenders, if any, pays the highest commission?

Loyalty Program: if everything else is equal and two or more Lenders are appropriate for the client, which of those Lenders, if any, offers a loyalty or points program?