Okay. We admit we’re “slightly” behind the curve on reporting this one. However, for those who haven’t heard…
In October, Invis bought Mortgage Intelligence from GMAC Residential Funding Canada, a subsidiary of embattled GMAC ResCap. The deal closed on October 1.
The merger was not publicized in the least –which is largely why we didn’t hear about it until recently. There was no press release, no media coverage, no Internet banter, nothing. In fact, the only clue we found on Google was this job ad.
Word is, this low-profile approach was intentional. Is that because GMAC didn’t want people to know what they sold Mortgage Intelligence for? We have no idea.
On the topic of price, none was disclosed. For what it’s worth, we’ve been hearing the sale price was in the neighbourhood of $7 million.
The two companies are now hard at work on melding their somewhat different cultures. Reconciling each of their compensation schemes may be one of the bigger issues they have to deal with.
As for volumes, both were (and are) big players in the business. Mortgage Intelligence funded in excess of $8 billion in mortgages during fiscal year 2007, a number roughly unchanged since 2005. Invis funded $6.9 billion in 2007. Combined, they are now easily the biggest mortgage brokerage in the country by volume.
Both Invis and Mortgage Intelligence launched in 2000.
Last modified: April 26, 2017
The real question will be whether Invis can keep most of the MI agents.
I have a question about open variable rate mortgages. Is it true that you can get one of these at a rate near/at/below prime (ie. 4%)? I have never seen an advertised lender ever state an “open” mortgage rate of anything close to prime. I realize now that “below prime” is rare in general but in the past (say 1 year or 2 ago) — Could I have gotten an “Open variable rate mortgage” at below prime?
Thanks!
R.
GMAC has been trying to sell MI for years, ever since Bob Ord left MI//Gmac for your company Rob-Mortgage Architects. Lenders have disappeared and been lost, hopefully this will allow bad agents to leave the industry also, nothing wrong with downsizing.
Thanks Rob.
I wonder what will happen to ResMor Trust?
I’m not sure if this is true but I heard a lot of MI agents are waiting for their retention bonuses on Jan 15, 2009. After they get them several agents may fly the coup for greener pastures. Hopefully Invis didn’t pay $7 million for nothing!
The price definitely wasn’t 7 million closer to half that amount and with some kickbacks depending on what percentage left within the first 90 days. Your right some of us did wait and received our LTI bonus. They made too many mistakes trying to merge Invis and M.I. There is not much left of MI in the West.