In contrast to the US housing finance market turbulence, the Canadian
mortgage market remains relatively untouched by these events and
Mortgagebrokers.com continues to grow, posting its 6th consecutive record
quarter highlighted by its first reported profits in the history of the
NEW YORK and TORONTO, Aug. 16 /CNW/ - MortgageBrokers.com Holdings Inc.
(OTCBB: MBKR - News), one of North America's fastest-growing mortgage
brokerage firms, announced today significant revenue increases for the second
quarter ended June 30th, 2007.
Revenues for the second quarter of 2007 were $2.34 million as compared to
$0.75 million during the second quarter of 2006. For the first time in
Company's history, Mortgagebrokers.com posted profits for Q2, 2007 of $30,219,
as compared to a loss of $749,100 in Q1, 2007. For the six months ended
June 30th, 2007 the Company generated $3.6 million in revenues as compared to
$1.1 million revenues for the same period in 2006 - an increase of over 233% -
and the company reduced net losses from $1.12 million to $0.72 million for the
Additional accomplishments during the reporting period that should be
- Canadian national sales force of mortgage brokers / loan officers
increased during the quarter to the record high number of 275 across
- National footprint of retail offices across Canada increased to 15
- The Company has extended its strategic alliance relationship with
RE/MAX Ontario-Atlantic Canada Inc. ("RE/MAX") to have launched its
mortgage solution with in-house mortgage agents across Ontario and
Atlantic Canada representing in excess of 35% of the RE/MAX franchise
network sales force in Canada. RE/MAX represents greater than a
30 billion dollar a year referral pipeline opportunity to the
According to Alex Haditaghi, CEO & Founder, "the company continues to
show strong momentum heading into the second half of 2007 and we project that
the Company will have a $3.6 billion dollar mortgage volume book of business
in 2007 generating in excess of $36 million in gross revenue for the company
in 2008." He continued by saying, "it's encouraging to all our staff and
network of mortgage brokers that their commitment and hard work are reflected
in our results. With the addition of so many new mortgage brokers in the first
half of this year, we expect this trend of record growth to continue."
Mr. Haditaghi believes that the Company's common stock is currently
undervalued based on the Company's strong revenue growth, its progress towards
sustainable profitability and its non-exposure to the current US sub-prime
mortgage meltdown. Mortgagebrokers.com sees the existing environment as a
tremendous opportunity to enter and expand its business model in the US
market. Mortgagebrokers.com is not affected by mortgage defaults since the
company acts only as a broker and not as a lender.
The State of the Canadian Mortgage Market
Further highlights that contrast the strong Canadian mortgage market place
as compared to the turmoil currently in the US market include (source: Survey
Report, Canadian Association of Accredited Mortgage Professionals, Spring
- If interest rates increased by as much as one-half point, 80 per cent
of Canadians could tolerate the increase to their mortgage payments.
- Canada is economically strong and Canadians are financially fit and
the mortgage market reflects this," stated the Canadian Association
of Accredited Mortgage Professionals. "Our recent survey shows that
mortgage holders continue to be satisfied with their current rates
and could absorb a further 0.5 per cent increase, without it having a
"significant impact" on their standard of living.
- Canadians have every intention of keeping up the feverish pace of
mortgage borrowing, adding an expected $78 billion by the end of 2007
to produce a total mortgage credit valued at $808 billion.
According to Mr. Haditaghi, the strength of the Canadian mortgage market
and the achievements that MortgageBrokers.com is experiencing by leveraging
its unique business model in the Canadian market place should ensure record
growth for the foreseeable future.
The Mortgagebrokers.com second quarter report can be found within the
Investor section at www.mortgagebrokers.com or at the Securities Exchange
Commission site, www.sec.gov.
Safe Harbor and 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' and 'projects'
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: can be found at www.mortgagebrokers.com