CMI Financial Group is wrapping up a very active first quarter, highlighted by a steady flow of new investors to our MIC Family of Funds and our whole loan program. A rebounding economy, strong housing-market conditions and a growing desire to diversify fixed-income portfolios have made private mortgages a highly attractive investment vehicle.
Assets under management grew considerably across CMI Mortgage Investments for the quarter ending in March. Our lending footprint continued to expand across Canada with a strong focus on higher-yielding second mortgage securities. Total assets under management increased by $119 million in the first quarter. We currently have $397 million in assets under administration, with total all-time funding reaching $695 million.
For our whole loan lending division, the composition of our portfolio is as follows:
- First Mortgages: 58.10%
- Second Mortgages: 32.76%
- Blanket and Third Mortgages: 9.14%
The average yield on first mortgages was 7.6%. On second mortgages, the average yield was 9.8%.
Assets under management growth continued to accelate for our MIC Family of funds with annual yield targets continuing to be met consistently throughout the quarter.
|FUND||NET ANNUAL YIELD (MARCH 2021)|
|CMI MIC Prime Mortgage Fund||6.34%|
|CMI MIC Balanced Portfolio Fund||8.42%|
|CMI MIC High Yield Opportunity Fund||10.41%*|
“Q1 was an exceptionally strong quarter for CMI as we reported growth across all our major divisions,” said Kevin Fettig, President of CMI Financial Group. “Our strong focus on second mortgages has allowed us to expand our service offerings and deliver strong portfolio returns despite the pandemic.”
With close to $700 million in successful mortgage placements, CMI Financial Group has emerged as one of Canada’s fastest-growing non-bank financial services providers. To affirm our renewed corporate vision, CMI Financial Group underwent a strategic rebranding in January to better reflect our unique value proposition as a leading provider of turnkey mortgage lending and investment solutions.
|Previous Brand Name||New Brand Name|
|Canadian Mortgages Inc. (CMI)||CMI Canadian Mortgages Inc.|
|CMI Mortgage Investment Corporation (CMI MIC)||CMI MIC Funds|
|Canadian Lending Inc. (CLI)||CMI Mortgage Investments|
|Canadian Servicing Inc. (CSI)||CMI Mortgage Services|
CMI in the News
CMI garnered media attention in February, as our very own Bryan Jaskolka sat down with Wealth Professional to discuss the growing importance of Mortgage Investment Corporations. During the interview, Bryan talked about the best ways for investors to seek exposure to the housing market at a time of soaring prices and record-low interest rates. He also explained how CMI MIC funds could bolster fixed-income portfolios at a time when government bond yields are near historic lows.
As evidence of the growing interest in mortgage investments, Warren Aarons, VP of Investor Relations at CMI, also spoke with Wealth Professional. Aarons provided insight on the benefits of MICs as a tool for advisors to provide their clients with exposure to the housing market within their investment portfolios.
Awards and Recognition
CMI was honored to be a 2020 finalist for the Private Lender of the Year Award at the Mortgage Awards of Excellence in February. This event celebrates leadership, achievement, and the pursuit of distinction in Canada’s mortgage industry.
The 2021 Canadian Mortgage Awards will be announced on April 29. We are extremely proud to share that our Executive Vice President Elizabeth Wood has been selected as a finalist for Woman of Distinction for her trailblazing contributions to the industry. Our Director of Underwriting Josie Milanetti was also honoured as a finalist for Lender Underwriter of the Year.
We are also proud to announce our nomination for Fastest Growing Company at the Canadian SME National Business Awards. This award recognizes not only exceptional business growth, but also strategic management of the resulting challenges and opportunities through smart business planning and innovation. We are also nominated for Small Business of the Year (up to 100 employees), an award that recognizes and applauds the contribution of small business to Canada’s economy through innovation, leadership and business planning excellence.
Q1 Report Highlights
CMI routinely produces original research and content to help our investors navigate the complex financial markets. Our Q1 report highlights include:
Interested in a topic we haven’t covered or want to know more? Let us know! We are always happy to hear from you.
The second quarter usually marks the beginning of the spring selling season as more homeowners look to put their properties up for sale. For homebuyers with families, the spring is a popular time to purchase property as it fits nicely with the school calendar. However, spring 2021 could present challenges for prospective homebuyers as the available supply of homes is near record lows. The silver lining is that, in large cities such as Toronto, higher home prices are attracting more sellers to market.
Overall, we expect market conditions to remain highly accommodative in the second quarter as the Bank of Canada (BOC) continues to provide post-pandemic relief in the form of record-low interest rates and weekly bond purchases. However, economists at Canada’s major banks expect the BOC to begin tapering its bond purchases beginning in April as the economy recovers. Canada’s post-pandemic recovery is also expected to continue in the second quarter as most regions gradually emerge from lockdowns.
CMI Financial Group remains well-positioned to expand its mortgage portfolio in the second quarter. Our mission is to continue shaping the private mortgage market through innovative products and services.
Do you have friends and family who may be interested in investing with one of Canada’s fastest-growing mortgage companies? We would be happy to speak with them about our different programs. Refer them to CMI today.
*An earlier version of this blog contained incorrect yield information for the CMI MIC High Yield Opportunity Fund. We regret the error and apologize for any confusion this may have caused.