Frequently Asked Questions
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Q. Does CMI offer mortgages directly to borrowers?
No. CMI lends exclusively through mortgage brokers. New borrower inquiries are referred to a mortgage broker, and existing borrowers are redirected back to the originating broker.
Q. Does CMI complete its own property appraisals?
CMI works with a network of carefully selected external property evaluation professionals who conduct thorough property valuations. For each deal, a customized list of approved appraisers is selected based on the unique parameters of the deal and included with the mortgage commitment.
Mortgage Servicing and Monitoring
Q: Does CMI charge investors an administration fee?
No, there is no charge to investors for our mortgage services. Administration fees are charged to the borrower(s)
Q: Is the borrower’s administration fee paid to the investor?
No. CMI Mortgage Services collects and retains the administration fees charged to the borrower, as per the Servicing Agreement. This ensures there is no cost to investors for our mortgage services.
Q: Does CMI conduct quality control reviews during the term of the mortgage?
CMI’s fulfillment and compliance teams provide ongoing quality control reviews throughout the entire term of the mortgage, ensuring all regulatory documentation is in order and any additional compliance documentation is validated.
Q: Does CMI work with a third-party payment processor?
CMI acts as a direct payment processor (PAD). Its team of in-house mortgage administration experts manage all post-closing administration matters including payment processing as well as arrears and default payment management.
Q: How often are interest payments paid out to investors?
Interest payments are usually paid out monthly; however, CMI also has many pre-paid mortgages where interest for the full term is paid up front to the investor. When investing in CMI MIC funds, an optional DRIP (Dividend Reinvestment Plan) allows investors to re-invest monthly interest payments. This enables compounded growth on future yields.
Learn more about CMI’s suite of MIC funds and how they can elevate your investment portfolio.
Q: When can investors expect to receive their monthly payment? What if a payment is late?
Investors typically receive funds within 2 business days. For accounts with a previous non-sufficient funds (NSF) payment, the processing timeline is 5 – 7 business days as additional time is required to ensure payment clearance. In the event a payment is not received within the expected timeline, investors should inquire with their bank directly.
Q: What process is followed for missed or non-sufficient funds (NSF) payments?
If the first attempt at payment collection is returned NSF, CMI will automatically attempt to collect the payment again mid-month. If the second attempt at payment collection is returned NSF, CMI’s administration department contacts the borrower(s) by telephone and email to resolve the payment by direct deposit or e-transfer.
CMI manages all follow up with the borrower, including phone calls, text messages email, and registered letters. Investors are kept up to date throughout the resolution process, which can take anywhere from 48 hours to 20 business days. If the borrower fails to bring the mortgage up to date, legal enforcement may be warranted.
Q: When can investors expect to receive a resolved NSF payment?
Once CMI receives funds to resolve an NSF payment, investors receive the funds within 1 business day. If the mortgage is currently being discharged, the payment will be included with the final payout statement.
Q: Will an investor’s Trustee fees be covered in the event of an NSF payment?
Yes. Trustee fees will be sent along with the interest arrears to the investor’s Trustee.
Q: Besides NSF payments, what events must mortgage investors provide CMI immediate notice of?
Whole mortgage investors must provide CMI immediate notice of:
- Non-sufficient funds (NSF) payments
- Insurance occurrence or default
- First mortgage arrears
- Condo lien
- Property tax lien
Notice should be provided to CMI’s administration department at firstname.lastname@example.org, along with a copy of any legal or other related documentation.
Once notice is received, CMI’s administration team records all documentation received as well as any charges incurred. The team contacts the borrower(s) within 24 hours to resolve the payment and manage all follow up, including phone calls, text messages email, and registered letters. CMI keeps investor(s) informed throughout the resolution process, which can take anywhere from 48 hours to 20 business days.
Q: What happens if a mortgage goes into default?
In the unfortunate event that the borrower defaults on their mortgage, CMI’s dedicated enforcement team will make every effort to achieve a satisfactory resolution or initiate legal action if necessary. In most cases, there is enough equity in the property that the investor will get back their principal as well as any accrued interest. If a loss results from insufficient equity, CMI will work with any bankruptcy trustees or pursue a deficiency judgement, where appropriate, to attempt to recoup the outstanding balance on the investor’s behalf.
Q: What happens if the underlying property burns down or is otherwise significantly damaged?
A prerequisite for every CMI mortgage is that there is adequate home insurance to cover most potential losses.
Mortgage Renewal and Discharge
Q: What is CMI’s renewal process? How is a whole mortgage investor made aware of a renewal request?
CMI manages all mortgage renewals in-house. A renewal reminder is sent 60-90 days prior to the maturity date to both the broker and their client. CMI contacts the borrower 60 days prior to maturity to determine their future intentions and discuss potential renewal options.
Once we confirm a borrower’s intention to renew, our renewal team assesses both current market conditions and repayment history to determine any renewal offers and the associated rate and fees. If the assessment supports a renewal recommendation, we contact the investor(s) to present an updated security package and secure investor consent.
Q: What is the process to return an investor’s capital if they choose not to renew a mortgage?
If a borrower requests to renew and our assessment of current market conditions and repayment history supports it, CMI will recommend renewal. If an investor declines the renewal request, CMI will update the borrower(s) and their broker to advise that they must make arrangements for the mortgage to be paid in full (and discharged) on the maturity date.
Q: Under what circumstances can an investor expect the mortgage principal amount to be less at maturity than at origination?
Under the terms of an Amortized Mortgage, a borrower makes a blended payment which consists of principal repayment and interest (P&I). As a result, the mortgage principal amount will decline over the term of the loan. These details, including the P&I breakdown of the mortgage payments, can be found in the Amortization Schedule within the original Mortgage Commitment.
Q: Can the interest rate be increased at the time of mortgage renewal?
Depending on market conditions and interest rate movements, it is possible that a mortgage could be repriced as part of the renewal process if the existing rate is substantially below market rates. Sometimes this is handled with increased fees instead of an interest rate adjustment.
Q: When a borrower renews a pre-paid mortgage and moves to monthly payments, how is payment information provided to the whole mortgage investor?
When a mortgage moves from prepaid to monthly payments, CMI will switch to direct payment processor (PAD). CMI will collect the borrower’s account information and have them sign a PAD form to set up the withdrawal of monthly payments. This is communicated to the investor(s) when CMI seeks their approval to renew the mortgage.
Q: Can an investor request an updated appraisal and/or credit check at the time of mortgage renewal?
Each mortgage renewal is reviewed with management on a case-by-case basis. If CMI determines an updated appraisal or credit check is required, it will collect these on behalf of the investor(s) as their mortgage administrator.
Q: What happens if a borrower does not renew and fails to pay out the mortgage at maturity?
Each mortgage is reviewed by management 15 days following the maturity date. If the borrower’s intention to pay out the mortgage cannot be confirmed at that time, it will be monitored by CMI’s enforcement team for next steps.
Q: Under what circumstances might a mortgage discharge to be delayed?
There are several circumstances that have the potential to result in a delayed mortgage discharge. These include, but are not limited to:
- Discharge instructions not received from the new lender in a timely fashion;
- Mortgage payout request ordered too soon;
- Request for additional funds (mortgage increase) made to the new lender;
- High volume of requests and/or the need to prioritize new purchases at the lawyers’ office.
Q: Are investors compensated in the event of a late discharge?
CMI will include any and all fees payable to an investor in accordance with the governing legislation of the jurisdiction where the mortgaged property is located.
Q: Is it necessary for release documents to be notarized at the time of discharge?
All provinces but Ontario require signed and notarized release documents in order for the Land Registry/Titles Office of the respective province to register the discharge.
Q: Do investors receive a copy of the mortgage discharge document?
Yes. Once the mortgage discharge document is prepared and reviewed by legal counsel, CMI shares it with the investor(s) for their records.
Q: Will an investor’s Trustee fees be covered at the time of discharge?
No. The discharge fee is a presumed cost of doing business with a Trustee.
Q: Can an investor use their own lawyer to discharge a mortgage?
No. CMI is partnered with lawyers across the country to provide expert legal services and advice. Our streamlined processes ensure smooth and timely discharges. Engaging a lawyer outside of this partner network increases the possibility of delays and unnecessary additional work on these files, with associated time and cost impacts. . For this reason, CMI manages all discharges in-house.
Q: If an investor has questions about a mortgage maturity or renewal, who should they contact?
Investors can bring their questions to their dedicated Investment Manager. Alternatively, investors can contact CMI at 1 (888) 465 1432, option 2, or via email at email@example.com.
Q: What is the difference between mortgage delinquency and mortgage default?
A mortgage is considered delinquent if it is less than 90 days in arrears (past due on a missing payment). A mortgage is in default if it is more than 90 days in arrears or experienced a “triggering event” (see below). In the unfortunate event that the borrower defaults on their mortgage, CMI’s enforcement team will make every effort to achieve a satisfactory resolution, including a monitored repayment program, or initiate legal action if necessary.
Q: What process is followed if a mortgage is in arrears and the borrower fails to bring the mortgage up to date during the resolution process?
If a borrower fails to bring the mortgage up to date during the resolution process, the file is escalated for review and adjudication and may be placed on enforcement watch. If legal enforcement is required, the file is promptly referred to CMI’s enforcement team to protect the investor’s investment.
Once a file is received, the enforcement team:
- Immediately sends a notification to the investor(s), including the reason for the referral
- Co-ordinates third parties, such as realtors, appraisers, property management, insurance providers and accounting services
- Provides timely updates and supporting documentation to the investor(s) at each stage of legal action
In most cases, there is enough equity in the property that the investor will get back their principal as well as any accrued interest. If a loss results from insufficient equity, CMI will work with any bankruptcy trustees or pursue a deficiency judgement, where appropriate, to attempt to recoup the outstanding balance on the investor’s behalf.
Q: Following what triggering events would mortgage enforcement be required?
Mortgage enforcement is required when a borrower fails to comply with the agreed-upon terms in the mortgage contract. At the time of a “triggering event”, the mortgage moves into a high-touch and hands-on manual process that is carefully managed by CMI’s administration team.
Enforcement may be necessary under specific circumstances, including:
- Mortgage arrears:
- More than three NSF occurrences
- 2 or more outstanding NSF payments
- NSF payment unresolved within 30 days, with no communication from the borrower
- Payment arrangement not followed through and more then 30 days past due
- First mortgage arrears/condo or tax lien not promptly resolved by the borrower
- More than 3 combined insurance (claim) notifications and/or default occurrences
- Mortgage 15 days past maturity without borrower response (in the form of a signed renewal or payout documentation)
Q: What happens if a mortgage needs to be enforced? What is CMI’s enforcement process?
If there is no satisfactory resolution to payment arrears, the mortgage moves to a dedicated enforcement team where it follows a rigorous collections process, including:
- Immediate adjudication of loan, including an assessment of the triggering event, payment history, communication history, property value, current market conditions and environmental conditions
- Immediate outreach to borrower to encourage communication and immediate resolution
- Development of a customized go-forward plan to address default based on each loan’s – and borrower’s – unique circumstances
If there is no satisfactory resolution, legal action is initiated, and the first legal demand letter is issued. Based on the jurisdiction of the default, application for court ordered notice of sale is initiated. After the court-mandated timelines expire, repossession of the mortgaged property is initiated.
Q: Can an investor use their own lawyer for enforcement?
CMI is partnered with leading enforcement lawyers across the country to provide expert legal services and advice. Our streamlined processes ensure smooth and timely enforcement actions. Engaging a lawyer outside of this partner network increases the possibility of delays and unnecessary additional work on these files, with associated time and cost impacts. For this reason, CMI manages all enforcements in-house.
Q: If an investor has questions about mortgage enforcement, who should they contact?
A dedicated support team is available to investors with files under enforcement action at firstname.lastname@example.org.
Q: Does an investor need to sign an investment contract with CMI?
All investors must first complete a ‘Know Your Client’ or KYC form to receive investment opportunities from CMI. Once a mortgage investment is accepted, the investor(s) will need to sign a contract to allow CMI to service their mortgage assets.
Q: Why does an investor need a lawyer for CMI mortgage investments? What is the benefit?
A lawyer will review the mortgage before it’s presented to an investor. They will be looking to identify any claims, liens or encumbrances on the property in question. For example, a lawyer can ensure that any outstanding property taxes, legal writs, or other liens against the property are paid off first from the mortgage proceeds, if they exist, effectively protecting the investor’s interests. In other cases, the borrower may be refinancing an existing mortgage, in which case the lawyer will ensure that the existing mortgage is paid out and removed from the title, with the remaining balance going to the borrower. The lawyer will also ensure the investor’s name is added to the mortgage on closing.
Q: Is there an administration charge when CMI services mortgage investments?
No, there is no charge for mortgage services. CMI Mortgage Services manages and safeguards every mortgage investment in-house from beginning to end, at no additional cost to the investor(s). CMI maintains rigorous quality standards and due diligence, offering investors a passive, worry-free investment solution.
Q: Does CMI allow investors to service their own mortgages?
No. All CMI mortgage investment products are fully serviced by CMI Mortgage Services, its in-house administration team. This enables CMI to protect investors’ investments through its daily monitoring and management processes. This also allows investors to grow their capital without the hassle of administering their own mortgage. Servicing mortgages in-house streamlines CMI’s approach to better protect investors’ needs and interests.
Q: What trust company does CMI deal with for registered plans?
CMI works with Olympia Trust Company to collect interest payments for investors investing through a registered account. The funds are deposited directly via pre-authorized withdrawals from the borrower’s account.
Q: Does CMI report interest earnings to the Canada Revenue Agency (CRA)?
For individual private mortgages, it is the investor’s responsibility to report interest earnings to the Canada Revenue Agency (CRA).
Q: If an investor has a question about their CMI mortgage investment, who should they contact?
Investors can bring their questions to their dedicated Investment Manager. Alternatively, investors can contact CMI at 1 (888) 465 1432, option 2, or via email at email@example.com.
Q: How should an investor notify CMI about a non-sufficient funds (NSF) payment, insurance occurrence or default, condo lien, property tax lien and/or first mortgage arrears?
All notifications of non-sufficient funds (NSF) payment, insurance occurrence or default, condo lien, property tax lien and/or first mortgage arrears should be sent immediately to firstname.lastname@example.org, along with a copy of any related documentation.
Q: If a potential investor has questions and would like to learn more about CMI’s mortgage investment programs, who should they contact?
Interested potential investors can contact CMI at 1 (888) 465 1432, option 2, and one of CMI’s investment professionals will be happy to assist. Alternatively, an email can be sent to email@example.com.
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