This document provides information on how to prepare a mortgage application for a MIC (Mortgage Investment Corporation) lender and how to present a MIC commitment to clients. It discusses the differences between MICs and private lenders, how to identify deals suitable for MICs, the underwriting process, what is included in a MIC commitment, how brokers get paid, and how to present the commitment as a solution to clients.

2. How to Prepare a MIC Mortgage
Application for your Lender
How to Sell a MIC commitment to your Clients

3. Presented by:
Will Granleese: M.B.A. Christine Perkins: BA AMP
Business Development Manager Business Development Manager
Antrim Investments Cove Mortgage

4. Why you’re all here…
• Sold out Event !!
• Today’s Market
• Mortgage Rule Changes push more deals to MIC Lenders
• Partner with a Professional Organization
• Set you up for Success

5. Agenda
• Difference between MIC’s and Private Lenders
• Identifying a MIC deal
• The Underwriting Process
• What you see on a MIC commitment
• How you get paid
• Presenting a solution to your client
• What happens when the file is instructed?

6. MIC value proposition
• Short term solution for your clients who are experiencing difficulties
receiving approval at traditional lenders
• Our fiduciary Duty… ( Provide clients with the best possible
solution)
• Focus on solutions not rates…
• Short term (typically 1 Year)
• Goal to have clients migrate back to institutional lenders within 1 or
2 years

7. The Difference between MIC’s and Private Lenders
• Professional organizations as opposed to
individuals
• Knowledgeable Underwriters vs. Limited Knowledge
• Fast turnarounds
• Committed to the deal as presented…will not back out
• Detailed lending guidelines
• Registered with FICOM
• Clear renewal policies

8. Identifying a MIC deal
Duty to client is to try institutional lenders first.
• Some clients fall through the cracks
• Self-employed
• Mortgage Rule Changes
• Unique Properties (Co-op, leasehold)
• Damaged Credit
• Pre-paid Mortgage
• 2nd and 3rd Mortgages

9. Identifying a MIC deal
• Inter-alia
• Land Deals
• Unique Locations
• Quick Close
• Debt Consolidation
• Foreclosure Relief
• Vendor Take-Back Mortgage

10. Identifying a MIC deal
The “Story” makes the deal.
• Yes they are self-employed… BUT… this is why it’s a deal…
• Lots of equity
• Back to work after injury
• Many other reasons

11. How to Increase your chance of an Approval
• Know your client
• Focus on the solution not the rate
• Be upfront with the real reason the client needs the mortgage
• Know your Lender
• Each MIC has a unique product offering
• Review the file with a MIC underwriter before submitting
• Application should be complete

12. The Underwriting Process
• The more equity the less stringent the
underwriting
• Max 75 – 80% LTV in most cases
• On higher LTV Deals MIC’s are more concerned with credit
• Capacity
• Collateral
• Character
• Capital

13. The Underwriting Process
Underwriter looking for the following
• Application – e-mail or Filogix
• Bureau
• Appraisal – Check approved appraiser list for each MIC
• Story – What makes this a deal
• Exit Plan (some MIC’s) – How will the client migrate back to
prime rates in the future?
• Geographic Location

14. What’s on the Commitment
• Higher Rates than Traditional Lenders
• Lender Fee / Broker Fee
• Less Red Tape
• Less Docs and conditions
• Faster Closings
• Good Faith Deposit
• Appraisal
• ILA may be required

15. How you get paid
• Earn More than ‘Bank’ deals
• 1 – 3% Lender Fee
• 1 – 3% Broker Fee
* Fees are negotiable depending on the size and challenges of
the file
• Majority of Brokers charge a min. $1000 fee
• Paid on funding directly from lawyers

16. How to Present the Commitment
Before you Submit the deal…
• Set expectations in the beginning…Do your clients know the rate
and fee will be higher?
• Make sure you have not promised bank rates.
• Have you reviewed the reasons why traditional financing is not
available at this time?
• Present the commitment as a solution

17. Presenting a solution to your client
This Mortgage is a Solution…
• They can move forward
• Make a positive change
• Clean up credit to reduce monthly payments
• Make a purchase now
• Not lose a down payment

18. Presenting a solution to your client
• Don’t focus on rate…focus on solution
• MIC’s are open to some level of negotiation… might be some
wiggle room depending on the file
• Limited pool of capital… decisions must be made quickly. Cannot
hold rate and funds for extended period.

19. What happens when the file is instructed?
• May require Certificate of Independent Advice
• Client responsible for Legal Costs
• Title Insurance
• Funding
• Very quickly…
• Title – leased land, prior charge confirmation…
• Lawyers - month end
• Conditions – appraisal, Form B…
• Sometimes within 24 hours

20. Other considerations…
• Respect a lender turndown
• Avoid sending the deal to multiple MIC’s at the same time
• Know your lender and know the file to increase closing ratios
• Avoid contacting the lenders lawyers to instruct changes

21. Conclusion
• More-than-ever your clients need options
• MIC’s are a great solution

22. Contact info:
Will Granleese: M.B.A. Christine Perkins: BA AMP
Business Development Manager Business Development Manager
Antrim Investments Cove Mortgage Ltd.
Will@antriminvestments.com christine@covemortgage.com
604.530.2301 778-988-8940