Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 15 Nov 2016, 08:15 AM Agree 0
Despite this, the developers are still confident in the project
  • Ron Butler | 15 Nov 2016, 10:21 AM Agree 0
    Stopping interest payments on a mortgage is a worrisome thing for any investor. What is also quite concerning is that the borrower seems to be in a position to say to the investors "Hey, nothing to see here, just be patient and all will be well". In most mortgage situations, if the borrowers stop paying the mortgage, the investor / lenders can take legal action to take over the property and attempt to recover their capital. That does not seem to be a viable option here. Looks like another example of the massive concerns arising from mortgage brokers recommending investments in a program that does not resemble the way most mortgages are managed.
  • David Landing | 15 Nov 2016, 10:30 AM Agree 0
    Article about delayed interest payments.

    How about an article on delayed principle payouts with intrest hopefully accruing?
    There are many and the list is getting longer.
  • John Benstead | 15 Nov 2016, 03:19 PM Agree 0
    They appear to be avoiding any mention of the percentage sold of the 6th and Tenth tower. If the Orchard is somehow dependant on that for continuation, I would be horribly concerned for the investors.
  • Paul Redley | 15 Nov 2016, 04:43 PM Agree 0
    These syndicated mortgage interest delays and law suites are beginning to sound like Groundhog Day. It appears that the funds raised to date in the Calgary's Orchard project "have been utilized" however as John Benstead said, the other purposely built towers are not mentioned. The construction loan would be contingent on the substantial completion of ALL of the project before any syndicated investor gets $1 back of their capital. Also, any existing investor that is not being paid interest should realize that the investment is not liquid and can't be sold even at a substantial discount.
  • DeJong | 15 Nov 2016, 11:32 PM Agree 0
    “Brokers are actively raising money for the project to bring the development budget up to date, and top up the IR for current and future payments.”

    Let that statement sink in.
  • Michele Hall | 21 Nov 2016, 11:56 AM Agree 0
    You have to question if the project is 60% sold and deposits taken , and funds have been raised for soft cost ... clearly there are accounting issues here .... there should be funds to make payments to investors and keep the project going ... there seems to be creative accounting going on and where is the audit of financial statements... investors should be staying clear !!!
  • Mortgage Mike | 21 Nov 2016, 03:10 PM Agree 0
    I'm fully with DeJong on this; that very statement unabashedly screams "Ponzi Scheme".
  • NotBuzzed | 21 Nov 2016, 04:21 PM Agree 0
    I think they pay brokers 8% or 15% for new money, very generous.
  • Jesse D | 22 Nov 2016, 08:40 AM Agree 0
    How many developments don't have delays? No one mentions developments that have delays aside from the ones attached to syndicated mortgages. All investors know this can happen. Perhap the brokers investing in private mortgages should be more concerned about their clients who are consistently getting burned by private investors and mics.
  • Michele Hall | 22 Nov 2016, 11:39 AM Agree 0
    does anyone know how many of these projects have successfully paid out to investors ? What has been the return on investment ? Is this just a Fortress issue or is this typical of all syndicated mortgages ?
  • Michele Hall | 22 Nov 2016, 11:41 AM Agree 0
    If this is a Fortress issue why are they continuing to sell ?Why are they not being criminally charged and brokers selling this being dealt with accordingly ?
  • Zak | 30 Nov 2016, 07:01 PM Agree 0
    Ponzi, all right.
Post a reply