FAQs

Funds are scheduled to be pulled from the account on the first business/banking day of each month. This means that if the first day of the month falls on a weekend or a public holiday, the funds will be pulled on the next business day. This timing ensures that transactions are processed efficiently and in line with standard banking procedures. It’s important to ensure that your account has sufficient funds by the end of the previous month to avoid any potential issues with the transfer.

If the initial attempt to pull funds is unsuccessful, repull attempts will be made. These repull attempts occur 7 to 10 business days after the initial pull attempt. This interval allows sufficient time to address any issues that might have caused the failure, such as insufficient funds or a technical problem. It’s important to resolve any such issues promptly to ensure that the repull attempt is successful. If you anticipate any problems or have experienced a failed transaction, we recommend contacting your bank or our customer service team to assist in resolving the issue before the repull attempt.

In the event of a missed or NSF payment, CMI’s administration department contacts the borrower(s) within 24 hours to resolve the payment and manages all follow up. Mortgage investors are kept up to date throughout the resolution process.

CSI will disburse the mortgage funds, but in case there is a prior encumbrance, the investor is required to inform of:

• Non-sufficient funds (NSF) payments 
• Insurance occurrence or default
• First mortgage arrears 
• Condo lien 
• Property tax lien 

Once notice is received, Administration:

• records all documentation received and records any charges incurred
• contacts the borrower(s) within 24 hours to resolve the payment and manages all follow up, including phone calls, text messages email, and registered letters
• keeps investor(s) informed throughout the resolution process, which can take anywhere from 48 hours to 20 business days

If Administration is unable to reach the borrower, or if the payment default is not resolved in a timely fashion, the file is escalated for review and adjudication and may be placed on enforcement watch. 

In certain circumstances, to protect your interest in the property, investors may be asked to provide funds to:

• pay insurance premiums to prevent the borrower’s policy from lapsing
• pay first mortgage arrears to bring the account into good standing, and to maintain control over the property and any legal proceedings

If the borrower fails to bring the mortgage up to date, legal enforcement may be warranted.

Interest payments are usually paid out monthly; however, CMI also has pre-paid mortgages where interest for the pre-payment period – which can be for the full term or just a portion – is paid up front to the investor.

If a mortgage has a pre-payment agreement, prepaid funds will be withheld on closing and applied to the mortgage as agreed. Regular monthly payments will commence the month following the end of the prepayment period (i.e. when the pre-paid balance equals zero). If the mortgage pays out before the end of the prepayment period, the amount NOT accrued as interest owing will be credited back to the borrower.

CSI Managed Files: The majority of files closed by CMI are managed by CSI. In this arrangement, CSI (CMI/CSI) takes an active role in managing the collection of monthly interest payments from borrowers. This process involves the fund pulls discussed earlier, where funds are pulled from borrowers’ accounts and then remitted to the lenders. CSI is responsible for providing detailed remittances to the lenders and handling any necessary repulls. Additionally, CSI actively manages the collection of arrears, employing methods like E-transfers and direct deposits, to ensure that lenders receive their payments promptly.

Trustee Managed Files: In contrast, trustee managed files, such as those with OTC (Olympia Trust), Contemporary, or CWT, are initially managed by the lender. For these files, CSI’s involvement is generally reactive and comes into play primarily when there are arrears on the file. For example, with OTC as a trustee, OTC handles all initial pulls for monthly interest payments. CSI does not get involved unless there is a Non-Sufficient Funds (NSF) issue or other payment arrears. In such cases, the lender, like OTC, informs our administration department of the arrears, following which CSI steps in to collect the payment from the borrower. The collected amount is then sent to our trust account, from where we remit it to the lender, such as OTC.

Enforcement may be necessary under specific circumstances, including:

• Mortgage arrears:
  • More than three NSF occurrences. 
  • 2 or more outstanding NSF payments.
  • NSF payment unresolved within 30 days, with no communication from the borrower.
  • Payment arrangement not followed through and more then 30 days past due.
• First mortgage arrears/condo or tax lien not promptly resolved by the borrower.
• More than 3 combined insurance (claim) notifications and/or default occurrences.
• Mortgage 15 days past maturity without borrower response (in the form of a signed renewal or payout documentation). 

If there is no satisfactory resolution to payment arrears, the mortgage moves to a dedicated enforcement team where it follows a rigorous collections process, including:

• Immediate adjudication of loan, including an assessment of the triggering event, payment history, communication history, property value, current market conditions and environmental conditions;
• Immediate outreach to borrower to encourage communication and immediate resolution;
• Development of a customized go-forward plan to address default based on each loan’s – and borrower’s – unique circumstances.

If there is no satisfactory resolution, legal action is initiated, and the first legal demand letter is issued. Based on the jurisdiction of the default, application for court ordered notice of sale is initiated. After the court-mandated timelines expire, repossession of the mortgaged property is initiated.

If legal enforcement is required, the file is promptly referred to CMI’s Enforcement team to protect your investment. 

Once a file is received, Enforcement:

• immediately sends a notification to the investor(s), including the reason for the referral
• coordinates third parties, such as realtors, appraisers, property management, insurance providers and accounting services
• provides timely updates and supporting documentation to the investor(s) at each stage of legal action

A legal retainer will be required for any action taken outside the province of Ontario. Investors will be contacted to discuss the anticipated costs and the legal process specific to the province in which the property is located. Files enforced in the province of Ontario are referred to our dedicated enforcement solicitors and will not require a retainer.

When a mortgage is up for renewal, CMI will contact both the mortgage broker and the borrower, as well as the investor(s) a minimum of 60 days prior to maturity to discuss potential renewal options.

Once we confirm a borrower’s intention to renew, our renewal team assesses both current market conditions and repayment history to determine any renewal offers and the associated rate and fees. Evaluations may also include conducting property assessments, ensuring property taxes are fully paid and confirming insurance is in place before a final decision is made.  

If the assessment supports a renewal recommendation, we contact the investor(s) to present an updated security package and secure investor consent to proceed. Investors can provide an automated response by clicking on the links provided in our email.

If an investor declines the renewal request, CMI will update the borrower(s) and their broker to advise that they must make arrangements for the mortgage to be paid in full (and discharged) on the maturity date.

CMI facilitates the entire renewal process, including discharging the mortgage when it is paid off.

If a borrower requests to renew and our assessment of current market conditions and repayment history supports it, CMI will recommend renewal.  If an investor declines the renewal request, CMI will update the borrower(s) and their mortgage broker to advise that they must make arrangements for the mortgage to be paid in full (and discharged) on the maturity date.

CMI is partnered with lawyers across the country to provide expert legal services and advice. With support from this legal network, we manage all mortgage discharges in-house. Our streamlined processes ensure smooth and timely discharges. Once the mortgage discharge document is prepared and reviewed by legal counsel, CMI will share it with you for your records.

For individual private mortgages, it is the investor’s responsibility to report interest earnings to the Canada Revenue Agency (CRA). 

If a borrower fails to bring the mortgage up to date during the resolution process, the file is escalated for review and adjudication and may be placed on enforcement watch. If legal enforcement is required, the file is promptly referred to CMI’s enforcement team to protect the investor’s investment. 

Once a file is received, the enforcement team:

• Immediately sends a notification to the investor(s), including the reason for the referral;
• Coordinates third parties, such as realtors, appraisers, property management, insurance providers and accounting services;
• Provides timely updates and supporting documentation to the investor(s) at each stage of legal action.

In most cases, there is enough equity in the property that the investor will get back their principal as well as any accrued interest. If a loss results from insufficient equity, CMI will work with any bankruptcy trustees or pursue a deficiency judgement, where appropriate, to attempt to recoup the outstanding balance on the investor’s behalf.

In the context of our financial transactions, “failed” refers to a payment that was not successfully collected for some reason. The most common cause of this is Non-Sufficient Funds (NSF) in the borrower’s account. However, there can be other reasons too, such as incorrect banking details (“bad banking”). When a payment fails, it indicates that the intended transaction did not go through, necessitating follow-up actions to rectify the situation and ensure the payment is eventually collected.

Advanced payment is a significant concept in our process. It refers to when CSI, in anticipation of a borrower’s payment, fronts the monthly interest payment to the lender. This is done so the lender receives their payment promptly, on the 2nd business day of each month. This arrangement ensures that the lender does not have to wait for the borrower’s fund pull to clear, which can take 3-7 business days.

Here’s how it works in practice: CSI always fronts one monthly interest payment to the lender, provided there are no outstanding fronted payments yet to be received. For example, if a file just closes and the first pull date is set for January 1st, the pull will take place on that date. Subsequently, the lender will be fronted the January monthly interest on January 2nd, before the borrower’s pull has cleared. This means that if the borrower’s pull later results in an NSF, the outstanding amount is owed to CSI, not to the lender.

However, there is a condition to this process. If the January 1st pull returns as NSF and is not rectified by February 1st, CSI will not front the payment for February to the lender. In such cases, the February payment to the lender will only occur once the February pull clears successfully or is otherwise received.

A mortgage is considered delinquent if it is less than 90 days in arrears (past due on a missing payment). A mortgage is in default if it is more than 90 days in arrears or experienced a triggering event. In the unfortunate event that the borrower defaults on their mortgage, CMI’s enforcement team will make every effort to achieve a satisfactory resolution, including a monitored repayment program, or initiate legal action if necessary.

No, there is no charge to investors for our mortgage services. Administration fees are charged to the borrower(s).

No. CMI Mortgage Services collects and retains the administration fees charged to the borrower, as per the Servicing Agreement. This ensures there is no cost to investors for our mortgage services.

CMI acts as a direct payment processor (PAD). Our team of in-house mortgage administration experts manage all post-closing administration matters including payment processing as well as arrears and default payment management. 

Investors typically receive funds within 2 business days of the payment date. For accounts with a previous non-sufficient funds (NSF) payment, the processing timeline is 5 – 7 business days as additional time is required to ensure payment clearance.  In the event a payment is not received within the expected timeline, investors should inquire with their bank directly. 

Once CMI receives funds to resolve an NSF payment, investors receive the funds within 1 business day. If the mortgage is currently being discharged, the payment will be included with the final payout statement.

No. The discharge fee is a presumed cost of doing business with a Trustee.

Yes. Trustee fees will be sent along with the interest arrears to the investor’s Trustee.

In the unfortunate event that the borrower defaults on their mortgage, CMI’s dedicated enforcement team will make every effort to achieve a satisfactory resolution or initiate legal action if necessary. In most cases, there is enough equity in the property that the investor will get back their principal as well as any accrued interest. If a loss results from insufficient equity, CMI will work with any bankruptcy trustees or pursue a deficiency judgement, where appropriate, to attempt to recoup the outstanding balance on the investor’s behalf. 

For more information on CMI’s mortgage enforcement process, please refer to the Explanation of Practices section.

A prerequisite for every CMI mortgage is that there is adequate home insurance to cover most potential losses.

CSI will disburse the mortgage funds, but in case there is a prior encumbrance, the investor is required to inform of:

• Non-sufficient funds (NSF) payments 
• Insurance occurrence or default
• First mortgage arrears 
• Condo lien 
• Property tax lien 

Notice should be provided to CMI’s administration department at administration@cmiloans.ca, along with a copy of any legal or other related documentation.

Once notice is received, CMI’s administration team records all documentation received as well as any charges incurred. The team contacts the borrower(s) within 24 hours to resolve the payment and manage all follow up, including phone calls, text messages email, and registered letters. CMI keeps investor(s) informed throughout the resolution process, which can take anywhere from 48 hours to 20 business days.

CMI’s fulfillment, compliance and administration teams provide ongoing quality control reviews throughout the entire term of the mortgage, ensuring all regulatory documentation is in order and any additional compliance documentation is validated.

In the case of arrears, CSI adopts a proactive approach. We will front one month’s interest to the lender as long as there are no outstanding arrears from previous periods. If there are existing arrears, we will remit all interest payments to the lender as soon as the borrower clears their overdue payments. This ensures that lenders receive their due payments with minimal delay, even in situations where borrowers fall behind.

CMI adheres to both Provincial and Legal regulations regarding Enforcement actions. Throughout the process, Lenders will receive clear and transparent guidance, including recommendations at every step.

If legal enforcement is required, the file is promptly referred to CMI’s Enforcement team to protect your investment.

Once a file is received, Enforcement:

• immediately sends a notification to the investor(s), including the reason for the referral
• coordinates third parties, such as realtors, appraisers, property management, insurance providers and accounting services
• provides timely updates and supporting documentation to the investor(s) at each stage of legal action

A legal retainer will be required for any action taken outside the province of Ontario. Investors will be contacted to discuss the anticipated costs and the legal process specific to the province in which the property is located. Files enforced in the province of Ontario are referred to our dedicated enforcement solicitors and will not require a retainer.

Currently, our standard practice is to remit payments to lenders on a monthly basis. This is a consistent policy applied across all lenders to maintain operational efficiency and clarity. The majority of CMI mortgages require monthly payments, typically due on the first of each month. However, there are instances where some mortgages have their payments pre-arranged from the advance at the time of origination.

As your administrator, CSI prioritizes transparency by providing direct updates on repayment history to Lenders. However, if you prefer not to receive these payment update emails, you may opt out or adjust your communication preferences accordingly.

In such cases, borrower pulls are scheduled for the first business day of the month. Accordingly, lender payments are processed on the second business day of the month. This ensures that transactions are aligned with banking operations and avoid delays due to non-business days.

Yes, the lender will be notified via email about the outcome of both the first and second debit attempts. This includes confirmation of successful payments as well as notifications of Non-Sufficient Funds (NSF). These notices are automatically sent to the lender’s email.

Yes, in cases where a trustee is involved, we remit the payments directly to the trustee. The trustee then processes these payments accordingly. This is a standard procedure ensuring a seamless and transparent transaction flow.

Under the terms of an Amortized Mortgage, a borrower makes a blended payment which consists of principal repayment and interest (P&I). As a result, the mortgage principal amount will decline over the term of the loan.  These details, including the P&I breakdown of the mortgage payments, can be found in the Amortization Schedule within the original Mortgage Commitment.

Depending on market conditions and interest rate movements, it is possible that a mortgage could be repriced as part of the renewal process. Sometimes this is handled with increased fees instead of an interest rate adjustment.  

When a mortgage moves from prepaid to monthly payments, CMI will switch to direct payment processor (PAD). CMI will collect the borrower’s account information and have them sign a PAD form to set up the withdrawal of monthly payments. This is communicated to the investor(s) when CMI seeks their approval to renew the mortgage.

Each mortgage renewal is reviewed with management on a case-by-case basis. If CMI determines an updated appraisal or credit check is required, it will collect these on behalf of the investor(s) as their mortgage administrator.

Each mortgage is reviewed by management 15 days following the maturity date. If the borrower’s intention to pay out the mortgage cannot be confirmed at that time, it will be monitored by CMI’s enforcement team for next steps.

There are several circumstances that have the potential to result in a delayed mortgage discharge. These include, but are not limited to: 

• Discharge instructions not received from the new lender in a timely fashion; 
• Mortgage payout request ordered too soon; 
• Request for additional funds (mortgage increase) made to the new lender;
• High volume of requests and/or the need to prioritize new purchases at the lawyer’s office.

CMI will include any and all fees payable to an investor in accordance with the governing legislation of the jurisdiction where the mortgaged property is located.

All provinces but Ontario require signed and notarized release documents for the Land Registry/Titles Office of the respective province to register the discharge. 

Yes. Once the mortgage discharge document is prepared and reviewed by legal counsel, CMI shares it with the investor(s) for their records.

A lawyer will review the mortgage before it’s presented to an investor. They will be looking to identify any claims, liens or encumbrances on the property in question. For example, a lawyer can ensure that any outstanding property taxes, legal writs, or other liens against the property are paid off first from the mortgage proceeds, if they exist, effectively protecting the investor’s interests. In other cases, the borrower may be refinancing an existing mortgage, in which case the lawyer will ensure that the existing mortgage is paid out and removed from the title, with the remaining balance going to the borrower. The lawyer will also ensure the investor’s name is added to the mortgage on closing.

No. CMI is partnered with lawyers across the country to provide expert legal services and advice. Our streamlined processes ensure smooth and timely discharges. Engaging a lawyer outside of this partner network increases the possibility of delays and unnecessary additional work on these files, with associated time and cost impacts. For this reason, CMI manages all discharges in-house.

No, there is no charge for mortgage services. CMI Mortgage Services manages and safeguards every mortgage investment in-house from beginning to end, at no additional cost to the investor(s). CMI maintains rigorous quality standards and due diligence, offering investors a passive, worry-free investment experience.

No. All CMI mortgage investment products are fully serviced by CMI Mortgage Services, our in-house administration team. This enables CMI to protect investors’ investments through its daily monitoring and management processes. This also allows investors to grow their capital without the hassle of administering their own mortgage. Servicing mortgages in-house streamlines CMI’s approach to better protect investors’ needs and interests.

CMI works with Olympia Trust Company and others to collect interest payments for investors investing through a registered account. The funds are deposited directly via pre-authorized withdrawals from the borrower’s account.

Enforcement costs are the responsibility of the investor(s) and will be reimbursed from either the proceeds of the mortgage payout or the sale of the property, provided there is sufficient equity. In certain circumstances, costs such as legal fees, property management fees, appraisal fees and property taxes may be paid by CMI Mortgage Servicing (part of CMI Financial Group), and either added to the mortgage payout or invoiced to the investor.

In most cases, there is sufficient equity in the property to recoup investor principal as well as any accrued interest. If a loss results from insufficient equity, CMI will work with any bankruptcy trustees or pursue a deficiency judgement, where appropriate, to attempt to recoup the outstanding balance on the investor’s behalf.

A dedicated support team is available to investors with files under enforcement action at enforcement@thecmigroup.ca.