There’s no shortage of myths about Mortgage Investment Corporations (MICs), but not all of them are accurate. As part of our MIC Buster series, we’re taking the most common myths about MICs and breaking them down with practical, experience-driven facts so you can approach every deal with greater clarity and confidence. Take a look at how we bust the top 5 common MIC myths.
Myth #1: MICs Don’t CAPITALIZE Fees
False. At Magenta, we capitalize fees as part of our standard approach— you don’t even have to ask. This means your clients don’t have to pay upfront out of pocket for fees. Instead, they are deferred in smaller increments over the loan term.
Myth #2: Context Doesn’t Matter on Applications
False. Context always matters. Every additional piece of information you can provide about your client’s credit history, income, and purpose for seeking a loan helps Magenta expedite the approval process and provide better support.
Myth #3: Exit Strategies Don’t Matter on Applications
False. Providing details about your client’s exit strategy at maturity supports Magenta’s ability to move through the approval process and help make the deal make sense. Your client’s application can make a great entrance with a good exit plan.
Myth #4: MICs Don’t Lend Behind Other MICs
False. At Magenta, we will go in second position behind another private lender—opening up more paths to get your deals approved and funded.
Myth #5: MICs Won’t Refinance Other MICs
False. Magenta has paid out other MICs in the past and is open to doing so in the future. It doesn’t matter if they’re another MIC— their tomorrow matters too.
Challenging Common Misconceptions as a MIC
Since 1994, Magenta has been transforming borrower roadblocks into fast, flexible, and practical mortgage solutions. As a MIC, we challenge common misconceptions by focusing on what’s actually possible—bringing clarity to complex scenarios.
Through MIC Busters, we separate fact from fiction, so when traditional options don’t fit, you have real alternatives that keep deals alive. That’s the Magenta Difference.
Disclaimer
This article serves purely informational purposes, and the writers have made efforts to verify the accuracy of the information and analysis. Readers should consult with a certified expert before making any financial decisions.