Magenta Voted One of CMP’s Top Employers

It’s with great pride that we announce Magenta has been selected as one of CMP’s Best Mortgage Employers of 2021!

Every year, CMP spotlights the best places to work in Canada’s mortgage industry, as chosen by employees. The level of commitment that this year’s employers had for their staff throughout the difficulties of the pandemic was admirable. The importance of mental health and well-being came into greater focus in 2020 due to enforced social isolation and the grim daily pandemic related news, and addressing those challenges was a high priority for this year’s award winners. Regular zoom calls and virtual interactions featured prominently among the list of initiatives submitted by interviewed employees.

The reality of working from home meant finding new and innovative ways of doing the same old jobs. Magenta acted to ensure that our staff had access to the technology they needed to work remotely both safely and effectively.

CMP recognized Magenta alongside other industry leaders including Home Trust, First National and Manulife.

Thank you to Magenta’s employees for honouring us with this prestigious award. We owe all our success over the past year to this dedicated team.

Read more about this award and view the full list of winners in the May edition of CMP Magazine.

About Magenta Capital Corporation

Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, visit www.magentacapital.ca.

CEO Gavin Marshall Inducted Into Hall of Fame

Magenta is proud to announce our CEO Gavin Marshall, has been inducted into Canadian Mortgage Professional’s Hall of Fame.

This award honours twenty who have dedicated their expertise and time to moving the Canadian mortgage industry forward. The recipients “have set new courses for the mortgage world, have educated and mentored generations of current and future industry professionals, and have tirelessly sought new ways to serve their employees, peers and clients”.

In naming Gavin Marshall to the Hall of Fame, CMP said the accomplishment was due to his “skill as a CEO at adapting to the always evolving mortgage industry”.  Gavin’s “dedication to building a robust team and cultivating talent by mentoring up-and-coming mortgage industry leaders” was also cited.

Gavin holds a Bachelor of Science in Economics from Trent University and a Master of Business Administration from Queen’s University. After graduation, Gavin held progressively more senior positions with a number of Canadian financial institutions.

Click here to read the full profile.

CMP also included Gavin Marshall in their inaugural Mortgage Global 100 List.

About Magenta Capital Corporation

Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, visit www.magentacapital.ca.

CEO Gavin Marshall Makes Mortgage Global 100 List

We’re proud to announce that our CEO and founder, Gavin Marshall, has been included in the inaugural Mortgage Global 100 List. Canadian Mortgage Professional, Mortgage Professional America, Mortgage Professional Australia and the New Zealand Adviser compiled this list after combing through hundreds of the biggest names in the industry.

The Mortgage Global 100 List recognizes mortgage industry leaders who are shaping today’s market by making incredible advancements at their own companies, taking associations to new heights, providing education to drive the industry forward and championing key issues that will carry our industry into the new decade. It shines a spotlight on outstanding professionals who are making a positive difference and helping drive change across the industry.

Gavin Marshall founded Magenta in 1994 and is the company’s chief executive officer. In 2019, CMP Magazine awarded Magenta Top Alternative Lender of the Year. Marshall holds a Bachelor of Science degree in Economics from Trent University. He holds an MBA degree, with a specialization in finance, from Queen’s University. After graduation, Marshall held progressively more senior positions in the areas of credit and mortgage underwriting. He had successfully invested in mortgages for his own account for many years, prior to the establishment of Magenta. Marshall is the Chairman of Trent University’s Philanthropic Advisory Council.

View the full list here.

About Magenta Capital Corporation

Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, visit www.magentacapital.ca.

Magenta Answers Broker Questions About B20

The new B20 guidelines are set to come into effect on January 1, 2018.  It is essential for Mortgage Brokers to understand lenders and their niches, and what impact these changes will have.  Accordingly, we have compiled Brokers’ most commonly-asked questions to help you understand Magenta’s lending posture.

Will borrowers have to re-qualify at renewal?
Magenta has always been a short-term lender and will continue to offer short-term loans.  We have always re-qualified mortgages based on payment history and current lending posture, with the goal to move borrowers back to the federally regulated space.

How will it affect your income-verification process?
Magenta has always had a rigorous income-verification process; however, our underwriters are encouraged to apply judgement to each file, and are well versed in identifying and verifying alternative sources of income.

Will Magenta be affected by the restrictions on co-lending and bundled mortgage products?
Although Magenta has previously participated in bundled products, we have always offered our standalone second mortgage product.  We anticipate our second mortgages becoming more popular in 2018.

Will the loan-to-value limits be affected?
Magenta continually evaluates and reviews its LTV posture, and we do not foresee any changes at this time.

Will Magenta still be able to cap their fees?
Yes, this is a key feature of our product offering.

Will the minimum qualification rate (stress test) affect Magenta’s rates?
Although federally regulated financial institutions will be required to qualify clients at the greater of their contract rate plus 2%, or the Bank of Canada posted 5-year rate, this is not the case for Magenta.  We will continue to lend to our clients at our contract rate.  In most cases, this will be equal to, or less than, the qualifying FRFI’s rates.  Our servicing ratios have already taken this rate into consideration.

At Magenta, our goal is to support our Broker Partners during these changes, as well as, help as many people as possible to achieve their home ownership goals.

To find out more about B20, call us at (613) 230-5014.

Register for Magenta’s back-end portal to access useful tools and forms today!

For more information, please visit Magentacapital.ca.

Top 4 Tips for Mortgage Brokers to Effectively Package Deals

You create solutions for your clients by addressing their unique circumstances. The process of packaging the deal is ultimately communicating your client’s story and the proposed solution to the lender.

By remembering these four tips, you will be able to package deals effectively:

Tip #1: Understand your client to provide strong lender notes.  

• Hear their story: ask open-ended questions and probe for explanations
• Identify the challenges of their situation
• Document the complete picture, providing strong lender notes

 

Tip #2: Know your lenders and the niches in which they operate.

• Know your lenders’ niches, lending areas, and special programs
• Match your client’s profile/circumstances with the right lender
• Be up front about what the client’s challenges are and what documents you can or cannot provide
• Contact your BDM to discuss the detail

 

Tip #3: Be clear on how the solution will help your client.

• Know the benefits of the deal and how they meet your borrower’s goals
• Focus on what’s important to the borrower e.g. payment over rate
• Communicate with the underwriter for any questions regarding the commitment
• Let your underwriter and BDM know if there are objections you can’t overcome in the event adjustments can be made

 

Tip #4: Formulate and communicate your exit strategy.

• Explain to the borrower why they didn’t qualify with an A lender and why you selected the chosen lender
• Plan for the end of the term
• Suggest actions the borrower can take to help themselves in the future
• Be specific and measurable in your action plan for the borrower: “You need to pay $X on your credit card and $X on your loan each month.  That will bring your balances to $X in 12 months and improve your credit score by the end of the term.”

 

With strong communication and planning, you can implement solutions that create better tomorrows for your clients.

Register for Magenta’s back-end portal to access useful tools and forms today!

About Magenta Capital Corporation

Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, visit www.magentacapital.ca.

3 Tips for Planning an Exit Strategy

For your clients who need a quick-fix mortgage, putting together an exit strategy is a must!

Here are three tips for planning an exit strategy that will help you transition your borrowers:

1. Begin Right Away.

Successful exit strategies depend on getting started right away. The best practice is to formulate a plan while the ink is still drying on the quick-fix mortgage. This is especially true if bruised or thin credit necessitated the short-term, higher rate mortgage, as credit takes time to build and repair.

2. Diagnose the Problem.

In order to find a solution, it’s important to know where your borrowers are struggling. The culprit is usually bruised or thin credit, but in this age of entrepreneurs, proving income may also be an issue. No matter the problem, there are almost always ways to address it and fix it.

3. Follow Up.

Set milestones for your borrowers and check in on them regularly to make sure things are progressing according to the plan you set up.

If everything is coming along nicely, you can begin building the file for their transitional refinance nice and early and have it ready to go when the quick-fix mortgage renews!

Register for Magenta’s back-end portal to access useful tools and forms today!

About Magenta Capital Corporation

Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, visit www.magentacapital.ca.