Broker lender could be poised to experience significant growth

Broker lender could be poised to experience significant growth

Broker lender could be poised to experience significant growth With MCAP 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 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, 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.
  • Victor Simone 2016-05-30 10:59:32 AM
    I think more brokers and agents in the business 5 years from now will start looking to lenders with renewal commissions. Also, the other type of lenders that I can see starting to get more share is the broker/monoline lenders like MCAP, First National, Home Trust, Equitable, Xceed, RMG, CMLS, Merix/Lendwise, Street et al. The only bank I see growing from the broker share is B2B.

    Just a hunch, but with banks keeping 85% to 95% of renewals. Using banks is like planting a fruit tree in your neighbour's yard and then expecting to pick the fruit in 5 years.....well, your neighbour might now allow you to pick the fruit, as well as banks not paying you a renewal fee on the business you helped originate.
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