Canadians and the broker channel are getting a new mortgage lender.° It’s called MonCana Bank of Canada.
Headquartered in Calgary, MonCana “is focused on the origination, sale and servicing of single family mortgages across Canada. The Bank is dedicated to the brokerage industry, originating both mortgages and deposits through brokers.” (Source)
MonCana is run by James Clayton and Gerry Wagner, who built and sold ResMor Trust to GMAC for an amount rumoured to be in the high $20 million range. Before that, Clayton and Wagner were involved with the development of Bridgewater Bank.
Clayton confirmed with us that brokers will be the only source of mortgage origination for MonCana. That’s a solid endorsement for our channel, which has seen a few lender departures as of late.
Pending OSFI’s final okay, it’s possible that MonCana could launch by the CAAMP Expo in late November. We’ll follow up with details on its products then.
MonCana received its bank licence back in March. It started the OSFI approval process a few years ago (as suggested by this Canada Gazette public notice).
Much of its key staff comes from ResMor Trust (which has been waiting for its own OSFI approval to become Ally Bank Canada).
° Pending OSFI’s official “Order to Commence and Carry on Business.” More on the bank formation process…
Rob McLister, CMT
Last modified: April 26, 2017
As long as they have something tangible to offer, it’s a welcomed addition. But speaking of Ally, why is it taking so long? I’m starting to wonder if all the bad reputation Ally has in the States with robo signers and their role in the securitization fiasco is delaying the issuance of a bank license over here. Just curious…
The rumour is that Resmor may have to merge with someone. Maybe its capital, management or business plan isn’t passing muster with OSFI?
The Resmor Mortgage portfolio is being sold to MCAP. They are the purchaser. This deal will be announced in next 2 weeks!
It is a portfolio sale so all their staff willl be let go, operation will shut down and we will lose another lender in Broker channel.
This is not good for our channel.
What does Resmor have that you can’t get somewhere else? An insured 5 year fixed? Whooo hoo. Where is this bank and these new products they have talked about for two years?
If this is true then Resmor leaving is no loss in my opinion.
Hi Jennifer,
We have super elite status with ResMor and have built a great relationship with the underwriters.
Their fixed rates are highly competitive and pay the most in the industry.
How reliable is the source the MCAP is purchasing ResMor?
I would also like to know how reliable the info is that MCAP is to purchase ResMor and that all ResMors awesome staff will be let go.
Mr Rose says.
Several people have asked Jennifer to provide the source of the rumour regarding the MCAP portfolio purchase.
A deafening silence appears to be the response as there would undoubtedly be some verifiable information out there.