TORONTO, July 16, 2014 /CNW/ - First National Financial Corporation (TSX: FN, TSX: FN.PR.A) today announced that First National Financial LP has entered into an
agreement with The Toronto-Dominion Bank ("TD") to provide underwriting
and fulfillment processing services for mortgages originated by TD
through the residential mortgage broker channel.
Under the strategic agreement, First National will employ a customized
software solution based on its industry leading MERLIN technology to
accept mortgage applications from the TD mortgage broker channel and
underwrite these mortgages in accordance with TD's credit policies,
compliance standards and controls. TD will fund all the mortgages
underwritten under the agreement and retain full responsibility for
underwriting guidelines, mortgage servicing and the client
relationship. The underwriting and fulfillment services provided by
First National will enable TD to further enhance its already strong
presence in the mortgage broker channel.
"This is an important agreement that leverages the distinct capabilities
and strengths of both parties," said Stephen Smith, Chairman and Chief
Executive Officer of First National. "For First National, it provides a
new source of income that we hope will grow over time."
First National will create a separate division to provide these services
from its offices across Canada. "The mortgage broker distribution
channel accounts for about $70 billion of new mortgage originations
each year," said Scott McKenzie, Senior Vice President, Residential
Mortgages. "This agreement further validates the channel's relevance
where First National will continue to be a lender in its own right."
"We are very pleased to be chosen for this mandate," said Stephen Smith
"It's a clear endorsement of our industry leading technology and
expertise in the independent mortgage broker channel by one of Canada's
premier financial institutions."
To ensure a successful transition, First National will assume
responsibility for underwriting and fulfillment processing services on
an incremental, regional basis beginning in early 2015. By mid 2015,
the agreement will encompass all of Canada.
About First National Financial Corporation
First National Financial Corporation (TSX: FN, TSX:FN.PR.A) is the parent company of First National Financial LP, a Canadian-based
originator, underwriter and servicer of predominantly prime residential
(single-family and multi-unit) and commercial mortgages. With over $77
billion in mortgages under administration, First National is Canada's
largest non-bank originator and underwriter of mortgages and is among
the top three in market share in the mortgage broker distribution
channel. For more information, please visit www.firstnational.ca.
SOURCE: First National Financial Corporation
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First National Financial Corporation
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