What types of mortgages does RiverRock MIC invest in and where?
We offer 1st and 2nd mortgages up to a loan to value of 80%. We lend on residential property located in urban and suburban areas in Ontario, with a focus on properties that are highly marketable.
How does RiverRock MIC find mortgage borrowers?
We deal strictly through licensed mortgage brokers and licensed agents in Ontario. There are reportedly over 10,000 mortgage brokers and agents in Ontario. These represent our external sales force; identifying and referring mortgages. RiverRock Management Inc. (The Manager) is retained to manage the mortgage portfolio. The Manager strictly manages the RiverRock MIC and does not broker mortgages for a fee.
How is the mortgage market regulated?
In the province of Ontario the Financial Services Commission of Ontario (FSCO) licenses and regulates all mortgage brokers, agents, and administrators. The Manager is a licensed administrator in Ontario. Additional information on FSCO licensing can be found here.
Who do you lend to?
RiverRock MIC focuses on residential properties in urban and suburban areas in Ontario that are highly marketable. RiverRock MIC’s clients are self-employed, new immigrants, and borrowers with soft, poor, or no credit. We mitigate the risk with our proprietary underwriting model.
What is the size of the market?
The residential mortgage market surpassed $1.3 trillion dollars in 2016. It has been growing at an annual growth rate of 7% compounded every year for the last 10 years. The Banks and Trust Companies focus on 80% of the market. Due to tighter restrictions by the regulators, the Banks and Trust Companies have restricted their lending practices. This has created a larger opportunity for RiverRock.