MortgageBrokers.com CEO acquires Mortgage Architects
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30/03/2010 9:00:00 AM
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Pacific NA, a financial services company founded and run by MortgageBrokers.com CEO Alex Haditaghi, has acquired Mortgage Architects and its lending arm, myNext Mortgage Company.
The move, announced yesterday in a press release, is part of a larger plan for Haditaghi to transform myNext Mortgage into an online bank. However, Mortgage Architects' VP of marketing, Kelly Neuber, said the company will stay under the leadership of CEO and founder Bob Ord.
"You're not seeing any changes at Mortgage Architects - our vision and goals and selective recruitment are still all the same," she said, adding Ord will remain "completely in charge."
Haditaghi did not mention any changes in his role at MortgageBrokers.com, which he started in 2006.
"Mortgage Architects is the jewel of the mortgage industry in Canada," he said. "We plan to deliver unique products and build the technology infrastructure for the company's mortgage planning mandate, which is to provide niche products and exceptional advice to customers as they move through their life stages."
Ord praised the acquisition - for which specifics were not announced - saying Pacific NA will help Mortgage Architects reach "that next level." Ord launched the brokerage in September 2006 and it has grown to include 64 lead planners and 300 associate planners. It reportedly processed more than $5 billion in mortgage applications last year.
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mortgagewoman on
17 May 2010 08:53 PM
I'm sure this is just the start of more good news to come from this company and Mr.Haditaghi.
Ontario Superior Court of Justice Finds Dirty Hands Against Mortgagebrokers.com Inc.
Mortgage Brokers City Inc. found to be entitled to use MortgageBrokersOttawa.com
OTTAWA, ONTARIO--(Marketwire - May 17, 2010) - In the Ontario Superior Court of Justice, Mortgagebrokers.com Inc. et al. sought an interlocutory injunction against Mortgage Brokers City Inc. et al. from using the domain name www.mortgagebrokersottawa.com. On March 31, 2010, Mr. Justice Beaudoin dismissed the injunction.
Mr. Justice Beaudoin reasoned that the claim for injunctive relief would have failed without the consideration of dirty hands but noted that "the plaintiffs do not come to court with clean hands". The plaintiffs continue to withhold commissions from mortgage agents and as such "appear to be in breach of their agreement that they themselves rely on".
Comments from Mr. Justice Beaudoin:
"On October 11, 2005 a licensing agreement was entered into between Elite Mortgage Team operating as 6356591 Canada Inc. as "Mortgage Consultant" and MortgageBrokers.com Financial Group of Companies Inc. as the "Company". Shortly thereafter, individual agents signed agent licensing agreements incorporating the same terms…Under these agreements, lenders advanced money to the plaintiffs who would then receive the commissions and split them with the defendants and the agents".
"In cross-examination, Mr. Haditaghi [Mortgagebrokers.com Inc.] admitted that the commission statements were compliant, that the lenders had advanced the monies and that no agent other than the principals of Mortgage Brokers City had been sued. He refused to indicate his understanding of clause 3.7 and 8.11 of the agent agreement. Paragraph 3.1 [3.7] deals with expenses whereas paragraph 8.11 permits holdbacks in the event of liability to third parties. No such liabilities are claimed. According to the defendants any insurance and other expenses for each agent would have been no more than $300 per agent. According to him, the plaintiffs would be entitled to hold back $12,000 at most".
"The defendants emphasize that the agreement allowed the parties to walk away from their arrangement on 30 days notice. In that event, the plaintiffs' estimated loss of $500 million in revenue [volume] would have still taken place. Mr. Hapke's [Mortgage Brokers City Inc.] evidence is that the only reason why the defendants moved business away within that 30 day period is because Mr. Haditaghi refused to release the held back commissions. While Mr. Haditaghi claimed that $20 million dollars of mortgages had been cancelled with a resulting loss of $200,000 to the plaintiffs, he admitted in cross-examination that the loss would only be $20,000".
"In his pleadings and in his affidavit, Mr. Haditaghi alleges that Mr. Hapke had secretly registered the confusing domain name ottawamortagebrokers.com [mortgagebrokersottawa.com] with a view of setting up a competing business. In fact, the defendants have been openly using the domain name mortgagebrokersottawa.com as well as the e-mail service associated with that name since 2006. The domain name mortgagebrokersottawa.com was owned and registered by the defendant Hapke before the licensing agreement was entered into between the parties".
"The plaintiffs had previously attempted to register a trade mark in the domain name MortgageBrokers.com. This application was rejected pursuant to the provisions of section 12 (1)(b) of the Trade-marks Act since these words are generic and are descriptive of the work that is being carried out".
Ongoing Holdbacks:
The commissions are still being withheld. "As of Febraury 2010, the total amount being held back in commissions for agents and partners exceeded $300,000". On May 4, 2010, each of the individual agents and others have commenced an application in Ontario against Mortgagebrokers.com Inc., Alex Haditaghi (CEO), Daniel Putnam (Principle Broker), Dong Lee (VP Operations) and others for over $550,000 of holdbacks. The application is scheduled to be heard by the Ontario Superior Court on August 5, 2010.
Watch Dog on
18 May 2010 06:03 PM
I’m sure this will be deleted but my question is why would Mortgage Broker News not run this article? As a source of industry news we look to media outlets like Mortgage Brokers News to keep us abreast of industry news, good and bad. When a particular brokerage advertises with your company, is bad news not worthy of being passed along? A news source is only good if it operates autonomously from those that help fund it.
Watch Dog on
18 May 2010 09:33 PM
You are correct; this is a thread that Mortgageman and Mortgagewoman posted. MBN didn't post the article.
WatchDog on
26 Jul 2010 05:24 PM
Mortgage Brokers City Inc.
Jul 26, 2010 13:53 ETMortgagebrokers.com Inc. et al. Ordered to Pay Costs to Mortgage Brokers City Inc. on a Substantial Indemnity Basis
Mortgage Brokers City Inc. Entitled to Use the Domain Name MortgageBrokersOttawa.com
OTTAWA, ONTARIO--(Marketwire - July 26, 2010) - On March 31, 2010, the Ontario Superior Court of Justice, dismissed an injunction filed by Mortgagebrokers.com Inc. et al. to stop Mortgage Brokers City Inc. et al. (MB City) from using the domain name www.mortgagebrokersottawa.com. On July 19, 2010, Mr. Justice Beaudoin ordered Mortgagebrokers.com Inc. et al. to pay MB City costs on a substantial indemnity basis in the sum of $157,080.78 forthwith.
Substantial indemnity costs, formerly known as solicitor and client costs, are typically awarded where one party to a litigation has engaged in improper conduct, acted for a wrongful purpose, and/or unnecessarily ran up the costs of the litigation.
Mr. Justice Beaudoin reasons' for ordering substantial indemnity costs against Mortgagebrokers.com Inc. included the following:
(1) MB City was successful in defeating the injunction;
(2) MB City made a comprehensive offer to settle that would have resolved all issues between the parties but that the offer was not responded to; and
(3) Mortgagebrokers.com Inc disclosed an entirely new theory of their case on the eve of the hearing of the motion.
Mr. Justice Beaudoin also noted:
"The plaintiffs [mortgagebrokers.com Inc.] sought equitable relief from the Court yet did not approach the Court with clean hands. Mr. Haditaghi resorted to self-help by withholding commissions and by denying access to the software that would have allowed the defendants to process mortgage transactions. I found that this conduct alone would have been sufficient to deny the plaintiffs the relief they sought. The last minute shift in strategy and the plaintiffs' lack of "clean hands", are the type of reprehensible conduct that requires a sanction in the form of substantial indemnity costs".
ABOUT MORTGAGE BROKERS CITY INC.
What are you going to do with the time and money you save?
Mortgage Brokers City Inc. is one of Canada's fastest growing teams and generates online leads across Canada. The Mortgage Brokers City Team has access to an elite mortgage team of Accredited Mortgage professionals across Canada to serve you. With this specially trained group of mortgage professionals, your goals are sure to be met.
For more information, please contact
Mortgage Brokers City Inc.
Michael Hapke
Managing Partner
613-274-0055 X250
mikeh@mortgagebrokersottawa.com
or
Mortgage Brokers City Inc.
Frank Napolitano
Managing Partner
613-798-1973 X234
frankn@mortgagebrokersottawa.com
or
Mortgage Brokers City Inc.
York Polk
Managing Partner
613-798-1973
yorkp@mortgagebrokersottawa.com
or
Mortgage Brokers City Inc.
Jeff Cody
Managing Partner
613-798-1973
jeffc@mortgagebrokersottawa.com
Brokers Beware on
28 Jul 2010 07:39 PM
How on earth does a brokerage get away with this? I have heard rumours about Alex Haditaghi but can’t believe he is still in the industry? Why do agents stick with a company that does this to agents that leave?
j on
03 Aug 2010 02:32 PM
"I’m sure this will be deleted but my question is why would Mortgage Broker News not run this article? As a source of industry news we look to media outlets like Mortgage Brokers News to keep us abreast of industry news, good and bad. When a particular brokerage advertises with your company, is bad news not worthy of being passed along? A news source is only good if it operates autonomously from those that help fund it.
" my thoughts exactly.
John on
12 Aug 2010 01:55 PM
Why do agents stick with a company that does this to agents that leave?
Perhaps no one else wants them? You are what you associate with.