Mortgage Origination
Our investment manager(s) acquire Commercial loans for the Multi-Strategy Income Fund.
Each Commercial loan application will be considered on its merits and made in accordance with our lending guidelines. We have defined processes and a specialist team for the selection of commercial loans for the Multi-Strategy Income Fund.
The general lending guidelines* are:
- The Multi-Strategy Income Fund will hold first registered mortgages and appropriate other security for commercial loans (as required by us) over real property;
- Borrowers must be able to demonstrate repayment;
- No single commercial loan will exceed 5% of the gross value of the Multi-Strategy Income Fund’s assets, subject to the Fund’s growth in assets.
- Independent valuations are undertaken for valuation of all commercial loan(s).
- Ongoing monthly repayments are to be made by a borrower(s).
*For full guidelines on our lending criteria please contact us directly.
Commercial Loans Assessment Process:
Our process, and that of our investment manager(s), involves the review of Commercial loans based upon the segregation between the evaluation phase, credit assessment, approval and monitoring phase.
We set out the stages of the process:
| Evaluation Phase: | Review candidate and loan requirements. |
| Due Diligence Phase: | Borrower, security requirements, repayment and exit strategies. |
| Submission Phase: | Detail full brief. |
| Credit Assessment Phase: | Evaluates, recommends, submits or rejects. |
| Credit Committee: | Approves or rejects submission. |
| Credit Team: | Manages, monitors and assesses ongoing asset management and repayments to completion. |
Business Referral Network
About 80% of our loans provided to borrowers are sourced from external origination (finance brokers and business referrers). Funding proposals are also sourced from self-original (client direct), referrals from existing and past clients and the internal network of MCML.