Consolidation in mortgage market presents significant opportunities as
both mortgage lenders and brokers search for ways to stay viable, seeking
alternative sources of revenue and increased reduction of overhead
NEW YORK, TORONTO, Aug. 10 /CNW/ - MortgageBrokers.com Holdings Inc.
(OTCBB: MBKR - News), one of North America's fastest-growing mortgage
brokerage firms, stated today that it believes its business model of
consolidating small and medium sized enterprise (SME) mortgage brokerages will
prosper even within a turbulent mortgage and housing market. "Recent reports
of a slow-down in the mortgage and housing market due to over-inflated home
prices, rising interest rates and sub-prime weaknesses present considerable
opportunities for escalating the pace of growth for our company,' says Alex
Haditaghi CEO of MortgageBrokers.com.
"With a declining mortgage origination pipeline and tighter margins, the
over 40,000 SME mortgage brokerages will seek cost and technology advantages
so they can survive the slowdown and re-evaluations in the lending and housing
markets," states Mr. Haditaghi. Haditaghi continued by stating that "our
consolidation model addresses long standing mortgage industry issues and
provides both short and long-term opportunities for its members."
The Mortgagebrokers.com paradigm allows for its mortgage brokers to
prosper even during a down cycle of the housing and mortgage market in the
- Mortgage Brokerages will reduce their overhead and fixed cost by
joining MortgageBrokers.com; by leveraging its shared services
environment for accounting, payroll, compliance, human resources,
technology, marketing, and loan processing.
- Branding under the MortgageBrokers.com banner will turn these
companies into one stronger, leaner, and highly efficient operating
entity that can better compete with nationwide originators in the
industry under one recognizable brand.
- Consolidation of the books of business from mortgage originators will
enable MortgageBrokers.com to better leverage with lenders for
revenue and rate discretion, through the pooling of origination
volumes and control over channeling of mortgage volume.
- MortgageBrokers.com lead generation system, national brand and
technology platform will allow SME brokers to acquire new customers,
better serve their current customers by focusing on sales, and
scalability through the reduction of back office responsibilities.
- By concentrating on sales and marketing on their business and equity
ownership participation, these SME brokerages will be able to hire,
train and retain more loan officers and expand their business.
Mr. Haditaghi commented: "We believe that the challenges facing the
industry should ultimately benefit MortgageBrokers.com as the mortgage
brokering and lending industry continues to consolidate. While we are
certainly excited with the current and future growth and execution of our
business plan, our executive team remains very much focused towards our goal
of becoming one of North America's largest and most respected mortgage
MortgageBrokers.com is mortgage brand and technology firm. The Company is
dedicated to re-branding the over 40,000 small and medium mortgage broker
(SME) firms in North America while providing these entities scalability
through a centralized shared services platform. MortgageBrokers.com is
designed to facilitate continued ownership for these SME brokers while they
work under the umbrella of one globally recognized brand. The Company provides
centralized services in the areas of payroll and accounting, compliance,
marketing, technology, HR and lead generation to afford its brokers improved
access to potential customers through strategic alliances and partnerships.
MortgageBrokers.com also provides its national team the opportunity to
leverage origination with lending institutions, establish higher referral fees
from lenders, and give its team members the ability to earn ownership in a
publicly-traded entity with the goal of an eventual career exit strategy.
Cautionary Note Regarding Forward-Looking Statements
Statements included in this press release, which are not historical in
nature, are intended to be, and are hereby identified as 'Forward-Looking
Statements' for purposes of safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-Looking Statements may be
identified by words including 'anticipate,' 'await,' envision,' 'foresee,'
'aim at,' 'plans,' 'believe,' 'intends,' 'estimates' 'expects' including
without limitation, those relating to the company's future business prospects,
and are subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the Forward-Looking
Statements. Readers are directed to the company's filings with the U.S.
Securities and Exchange Commission for additional information and a
presentation of the risks and uncertainties that may affect the company's
business and results of operations. www.sec.gov.
For further information:
For further information: Mr. Jody Janson, (585) 232-5440