poised to go public, it could become an even larger and more influential player in the mortgage industry.
“While residential mortgage brokers really just know MCAP as a monoline residential lender there is a commercial mortgage operation as well. There is a limited partnership aspect to the current company and quite often limited partnerships find reasons to eventually go public,” Ron Butler
, industry veteran and broker with Butler Mortgage, told MortgageBrokerNews.ca via email.
“The executives are all smart people, this is likely a repositioning to allow limited partners to have a more liquid means to manage their equity positions in the company and it may also be a better method to increase capital which is always a good thing for a non-bank lender.”
MCAP filed to go public, MortgageBrokerNews.ca reported Thursday.
It is the second largest mortgage finance company in Canada in terms of 2015 origination volume and mortgages under administration.
MCAP had $55 billion in mortgages under administration as of April 30, 2016.
In 2015, MCAP had $14.3 billion worth of mortgage originations and $4 billion renewals.