Collects
Borrower payments, by pre-authorized debit, on the schedule set out in the commitment.
Who holds the money,
and under whose licence.
A mortgage administrator is licensed to receive payments from borrowers and remit them to the lenders and investors entitled to them. It is a separate licence from a mortgage brokerage, with its own capital, insurance, trust-accounting and audit obligations. Lendmax Inc. holds one: FSRA Licence 13002.
Segregates
Funds received on behalf of investors are trust funds. They are held in a trust account, kept separate from the administrator's own money, and reconciled monthly.
Remits and reports
Payments flow to the party entitled to them, with statements and notifications about the performance of the mortgage.
What the licence obliges
- Minimum unimpaired working capital, maintained at all times
- Errors and omissions insurance including extended coverage for fraudulent acts
- A designated principal representative accountable to the regulator
- Trust accounts, prescribed records and monthly reconciliation
- Annual audited financial statements, an internal controls report and a trust account report filed with FSRA
- Written policies and procedures, and a complaints process
What the licence forbids
- Guaranteeing a lender or investor anything in respect of a mortgage — directly or indirectly
- False, misleading or deceptive statements in any public-facing material, this website included
- Mixing trust funds with the administrator's own funds
- Failing to report a trust shortfall
This is why you will not find a promise of a guaranteed return anywhere on this site. It is not modesty — it is the law that governs the licence.