Marlborough Stirling Canada, in partnership with CommunityLend, launched Canada's first online, peer-to-peer private lending service this week.
Over the past two years, CommunityLend has gone through an intensive regulatory process and the company has said their system has become comparable to the mainstream banks. They verify their customers' identities, comply with anti-money laundering and privacy regulation, pull credit history, and register their loans with the Ontario Securities Commission. CommunityLend services the loan during its duration including managing any collection activity on the lender's behalf.
Using MorWEB, brokers can refer clients to CommunityLend to arrange loans from private investors. Phase two, which will further integrate MorWEB and CommunityLend, is scheduled for release later this year.
"We haven't put a timeframe around the specifics because we want to test out the appetite for this application in phase one. Phase one is, in essence, an embedded launch process inside of MorWEB so brokers can come and get the general information about CommunityLend. If we get overwhelming demand, we'll accelerate our walk towards phase two," said CommunityLend CEO Michael Garrity.
Tim Brown, general manager for MorWEB, said he is confident the service will benefit mortgage brokers.
"By providing the integration of MorWEB with CommunityLend, we are continuing to increase the tools available to brokers to service their clients beyond the mortgage transaction," he said.