TORONTO -- Cervus Financial Group Inc. ("Cervus"), (TSX:CFG) is a financial services company dedicated to providing mortgages through selected mortgage brokers. The Company announced today that it has launched Pre-Approved Mortgages and its next generation of mortgage processing technology.
With the launch of Pre-Approved Mortgages, the professional mortgage broker will be able to attract the customer much earlier in the purchase cycle and provide the purchaser with the comfort of knowing they have an approved mortgage before they commit to the purchase of a new home. This product helps the professional Mortgage Broker grow their business, support their referral sources and puts Cervus in front of the borrower sooner. Cervus is providing a rate guarantee for 90 days.
Pre-Approvals were launched on the next generation technology platform which went into production on April 30, 2005. This next generation technology platform also provides for real time processing of Mortgage Commitments with the "Cervus Preferred" rate mortgage pricing in minutes. Mortgage Commitments in minutes is accomplished with business rules and workflow processing technology that processes rapidly through Cervus's lending rules and interfaces directly with the underwriting systems of CMHC and Genworth. Once the Mortgage Insurer automatically provides the insurance approval, Cervus will run the application against a second level of credit rules and if successful, automatically generate the mortgage approval and transmit this to the Borrower's Mortgage Professional with "Preferred Rate" mortgage pricing. This all takes place without human intervention for qualifying borrowers and properties.
"Upon going live with the new automation, we received and approved four Pre-Approved mortgages with a turn around time of less then 3 minutes from time of submission" states Gary Bartholomew, CEO of Cervus Financial. "These are incredible results and clearly raise the bar in the mortgage industry again, providing the professional Mortgage Broker with the tools and products they need to retain the Customer for Life and build their own book of business".
About "Customer for Life"
The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus.
Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks to become a high-yield residential mortgage producer and the largest mortgage broker lender of conventional insured and insurable mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $30B in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers.
Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial services and related businesses. Cervus is focused on funding and servicing insurable conventional and high ratio insured residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario, Quebec, British Columbia and Alberta mortgage broker/lender legislation and is seeking similar regulatory approvals in other Canadian Provinces as required. Cervus' head office and Ontario operations centre is located in Toronto, with additional sales offices in Vancouver, Calgary and in Montreal. Cervus Financial Group Inc. conducts all lending operations through its wholly-owned subsidiary, Cervus Financial Corp.
Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
Cervus Financial Group Inc. (TSX:CFG)
Source: COPYRIGHT 2005 Business Wire
COPYRIGHT 2005 Gale Group, Business Wire. 01 Apr. 2008., "Cervus Financial Launches Pre-Approved Mortgages And Next Generation Processing Technology". Business Wire. . FindArticles.com. 02 Apr. 2008. http://findarticles.com/p/articles/mi_m0EIN/is_2005_May_3/ai_n13667239