CEO Makes Mortgage Global 100 List

Magenta is proud to announce our CEO and founder, Gavin Marshall, has been included in the inaugural Mortgage Global 100 List. This list includes some of the biggest names in the sector and was compiled by mortgage industry publications from around the world, including Canadian Mortgage Professional, Mortgage Professional America, Mortgage Professional Australia and the New Zealand Adviser.

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.

View the full list here.

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
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a long track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.

For more information, please visit 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
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a long track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.

For more information, call us at 888-267-1744 or  visit Magentacapital.ca.

Magenta Voted Top Alternative Lender of the Year

Magenta is proud to be named winner of the Alternative Lender of the Year award by Canadian Mortgage Professional magazine, the leading Canadian trade publication for the mortgage industry.

The award is detailed in CMP’s September edition, available online. Magenta won in every category, taking gold in nine areas and silver in one.

• Turnaround time
• Underwriter support
• Overall service levels
• Interest rates
• BDM support
• Product range
• Satisfaction with credit policy
• Broker support
• IT/Tech
• Transparency of commission structure

 

In naming Magenta alternative lender of the year, CMP said, “For [CEO Gavin] Marshall, there’s nothing more gratifying than when a longstanding client says they couldn’t have lived the life they did without Magenta.”

This award has extra meaning for everyone here at Magenta, as it comes as we mark our 25th anniversary. Since our founding in 1994, we have strived to put service excellence and our relationship with our partners at the heart of everything we do. This award recognizes that putting our brokers and their clients first is the best way to do business.

Magenta thanks our broker partners for trusting us with their business and to CMP for recognizing our efforts with this prestigious award.

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Magenta Turns 25

This year Magenta celebrates its 25th anniversary, and we want to say thank you to all the investors, brokers and borrowers we have had the pleasure of working with since opening our doors in 1994.

Before we became one of Canada’s largest mortgage investment corporations, Magenta had its humble origins in the home basement of our CEO and founder Gavin Marshall in Perth, Ontario. Our first official company purchase was a used office chair, and our first employee was hired eight years later.

From the start, Magenta has focused on one thing above all else: providing excellent service for our investor, broker and borrower partners. Putting these relationships at the heart of Magenta has been key to our success: We’ve grown from $4 million in assets under management at the time our first employee was hired in 2002, to over $300 million AUM and 35 employees today.

“At the end of the day, it’s the service we’re providing that matters most – we don’t hold any patents or have an ore body in our backyard – so it’s important that we do what we say we’re going to do, to uphold our commitments in order to build trust in the relationships we have with our investor, broker and borrower partners,” said Marshall. “We look forward to growing and strengthening these relationships for years to come.”

About Magenta

Established in 1994, Magenta is one of Canada’s oldest and largest Mortgage Investment Corporations with current assets under administration exceeding $300 million. Magenta sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession-resistant real estate markets in the country. Magenta has a 25-year track record of generating superior returns for the shareholders.