MCAP to acquire ResMor mortgage book

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MCAP has announced an agreement to acquire the residential mortgage operations and certain related assets of ResMor Trust Company. The transaction is expected to be completed in the first quarter of 2012 and is subject to regulatory approval and other customary closing conditions.

“This transaction is a perfect fit with the MCAP Group's long-term growth strategy,” said MCAP Commercial LP Chief Executive, Derek Norton. “The addition of nearly $6 billion to our servicing portfolio will help us fully leverage our existing servicing platform. Our current client base of serviced residential mortgages is estimated to grow to more than $31 billion, solidifying our market position. With the addition of ResMor’s professional mortgage staff, key brokers, investors and other business partners to our existing operation, we will be ideally situated to foster strong future growth.”

Steve Maker, MCAP Service Corporation Chief Executive, explained further; “Not only will this transaction immediately add to the MCAP Group asset base, but the incorporation of ResMor’s strong relationships with professional mortgage brokers across Canada, together with the staff who service these relationships, will enhance our ability to grow our share of the residential mortgage origination market through the broker channel.”

MCAP is not purchasing the automotive or deposit lines of business from ResMor.

  • Vancouver Island Broker on 2011-12-02 7:32:17 AM

    Oh NO!
    I hope MCAP doesn't change a thing with ResMor! As in my opinion, ResMor is a MUCH better lender than MCAP!

  • Disappointted Broker on 2011-12-02 7:42:05 AM

    MCAP feels like they are bank lender, one of the most arrogant lenders out there. Definetely bad news.

  • Ottawa Broker on 2011-12-02 7:50:08 AM

    In regards to Vancouver Island Broker's comment, I see MCAP as the better lender. (not meant as argumentative) It is amazing when you talk with other brokers how we have all have different opinions on the lenders. I wish they would stop buying each other or becoming one as they all serve their niche in the market. Resmor is better with the rural conventional deals, they seem more willing. This will also make MCAP probably the 2nd largest lender behind Firstline, even though I consider Firstline a bank, not one of the broker monoline lenders.

  • Chris on 2011-12-02 7:53:34 AM

    Love dealing with MCAP, just have to get the right underwriter and BDM.

  • Another Lender on 2011-12-02 9:22:41 AM

    This is a very bad news for the industry! MCAP has to close Resmor operations within 3 months due to a) OSFI Regulation b) CMB/MBS issuance restrictions. MCAp already has a CMB allocation and can't have the second allocation. Also since the Resmor already has an exisiting ongoing business under Resmor Trust and OSFI wouldnt want to confuse the people!

    This is a very bad news for Mortgage Broker industry. This is the 4th lender we hav elost this year! its a good deal for MCAP because they are getting closer to First National. so in next 90 days you will see Resmor sales people rebranded under MCAP!

  • AB Mortgage Broker on 2011-12-02 9:24:09 AM

    What...MCAP has BDM's? lol Maybe there are two, one in BC and the other in Ontario.

    I used to like to deal with them, but after fielding several calls from clients complaining about the 3 year sale clause, I no longer do. I have never, and will never place a client into a product like that as life happens. #badforbusiness

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