Cervus Financial Group Inc. Signs $20 Billion In Mortgage Volume Commitments With 12 Leading Mortgage Brokerage Firms Across Canada.TORONTO -- Cervus Financial Group Inc. (TSX-V:CFG CFG Configuration (File Name Extension) CFG Control Flow Graph CFG Context-Free Grammar CFG Club for Growth CFG Cienfuegos, Cuba (city/airport code) CFG Critical Friends Groups ) ("Cervus"), a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company dedicated to providing mortgages through mortgage brokers, announced today that it has signed a total of $20 billion in residential mortgage volume commitments with twelve of Canada's leading national and regional mortgage brokerage firms. The $20 billion in residential mortgage volume commitments will be delivered over the next five to seven years in exchange for 3,937,500 common shares of Cervus. This innovative approach creates ownership for the mortgage brokers and enables them to participate in the building of Cervus. "We are very pleased to have partnered with the leading mortgage brokerage firms across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. ." stated Gary Bartholomew, Chairman and Chief Executive Officer of Cervus, "With our "Customer for Life(TM)" model fully operational, we have begun our national roll out and the preliminary results are impressive. Our "Customer for Life(TM)" model introduces to Canada the first comprehensive origination, renewal and trailer fee Trailer Fee A fee that a mutual fund manager pays to a salesperson who sells the fund to investors. Notes: The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services. compensation model and supports long-term relationships between mortgage brokers and their customers. The interests of borrowers, mortgage brokers and our institutional mortgage investors have all been aligned for the long term as we build towards being the largest mortgage broker lender in Canada". A total of $20 billion in residential mortgage volume commitments have been executed with leading firms with operations in Ontario, Quebec, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography and Alberta. It is expected that this volume will be delivered over a five to seven year timeframe as Cervus phases in its mortgage broker partners over the next 18 months. The mortgage volume commitment agreements are between Cervus' mortgage broker partners and a partnership among these mortgage broker partners (the "Partnership"). The Partnership has in turn committed the mortgage origination volume to Cervus in exchange for common shares of Cervus. Cervus issued a total of 3,690,000 shares to the Partnership prior to its amalgamation with NetDriven Solutions Inc. for the benefit of eight-mortgage broker firms, in return for $17.5 billion in deal flow commitments. Cervus intends to issue a further 247,500 shares, by way of private placement that has been conditionally approved by the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. and approved at a meeting of the Board of Directors of Cervus held on September 22, 2004. These shares will be issued to the Partnership at a price of $0.80 per share for aggregate consideration of $198,000, for the benefit of four-mortgage brokerage firms for $2.5 billion in additional deal flow commitments. Cervus' residential mortgage broker partners included in the prior share issuances were: - Discount Mortgage Canada Inc. (Ontario) - 1546664 Ontario Ltd. doing business as MortgageEdge (Ontario) - 1490845 Ontario Ltd. doing business as Assured Mortgage Services (Ontario) - Pro Link Mortgage Inc. (Alberta) - RBD RBD Rebelde (Mexican Novela) RBD REM (Rapid Eye Movement) Behavior Disorder RBD RNA-Binding Domain RBD Rebuild RBD Required Beginning Date (qualified retirement plans) Financial Inc. doing business as Mortgage Connection (British Columbia) - Re-Max Macklem Mortgage Limited (British Columbia) - The Mortgage Alliance Company of Canada/Multi-Prets Hypotheques Inc. (National) - TMG TMG - TransMoGrifier. An early language for writing recursive descent compilers. It was macroed from the IBM 1604 to the IBM 709 to the IBM 7094 to the GE-635, where it was used by McIlroy and Morris to write the EPL compiler for Multics. The Mortgage Group Canada Inc. (British Columbia) Firms to benefit from the shares to be issued are: - Homeguard Funding Ltd. (Ontario) - 1238327 Ontario Ltd. doing business as R/E R/E Revolutionary / Evolutionary Active Mortgages (Ontario) - 1632200 Ontario Ltd. doing business as Your Mortgage Connection (Ontario) - Oriana Financial Group of Canada Ltd. (Ontario) "The Cervus value proposition to the mortgage brokerage firms is so powerful; it has allowed us to attract individual mortgage professionals that view this opportunity as a long-term, profitable career", commented Michael Beckette, Executive Vice President, The Mortgage Alliance Company of Canada. "Equity participation in Cervus and the Cervus compensation model allows the mortgage professional to create value in their business and retire with a long-term, continual cash flow stream. The value proposition to the mortgage professional will help The Mortgage Alliance Company of Canada grow and attract the best in the industry. We are very excited to be part of this initiative that will truly change the face of the industry". Cervus will provide one, three and five-year fixed rate mortgages and a five-year adjustable rate mortgages This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. to mortgage broker partners and their customers at "Best Rate" today and at renewal. "The response from the mortgage broker community has been tremendous" stated Richard Bell Richard Bell may refer to:
"The Cervus "Customer for Life(TM)" business model is changing the way the residential mortgage industry in Canada is going to evolve." said Grant Thomas Grant Thomas may refer to:
Cervus has commenced the roll out of its services in Ontario and is currently receiving residential mortgage applications. Cervus intends to begin roll out in British Columbia and Alberta in the fall of 2004, while Quebec is planned for roll out in early 2005. About "Customer for Life" The Cervus "Customer for Life(TM)" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one-time origination fee A charge imposed by a lending institution or a bank for the service of processing a loan. For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan. and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life(TM)" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus. About Cervus Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. to become a high-yield mortgage producer and the largest mortgage broker lender of AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $30B in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers. Cervus works on the basis of a "Customer for Life(TM)" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial service and related businesses. Cervus is focused on funding and servicing conventional and high ratio residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario's mortgage broker legislation and is seeking similar regulatory approvals in British Columbia, Alberta and Quebec. Cervus' head office and Ontario operations centre is located in Toronto, with additional planned offices in Vancouver (2005) serving Western Canada
Western Canada, commonly referred to as the West and in Montreal serving Quebec (2005). Cervus Financial Group Inc., will carry on all lending operations through its wholly-owned subsidiary, Cervus Financial Corp. Forward-looking (safe harbour) statement Statements made in this news release that relate to future plans, events or performances are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Additional information about Cervus is available on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review (www.sedar.com). The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Cervus Financial Group Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CFG) |
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