Press release from CNW Group
First National to provide mortgage underwriting processing services to Toronto-Dominion Bank
Wednesday, July 16, 2014
First National to provide mortgage underwriting processing services to Toronto-Dominion Bank08:30 EDT Wednesday, July 16, 2014
TORONTO, July 16, 2014 /CNW/ -First National Financial Corporation (TSX: FN, TSX: FN.PR.A) today announced that First National Financial LP has entered into an agreement with The Toronto-Dominion Bank ("TD") to provide underwriting and fulfillment processing services for mortgages originated by TD through the residential mortgage broker channel.
Under the strategic agreement, First National will employ a customized software solution based on its industry leading MERLIN technology to accept mortgage applications from the TD mortgage broker channel and underwrite these mortgages in accordance with TD's credit policies, compliance standards and controls. TD will fund all the mortgages underwritten under the agreement and retain full responsibility for underwriting guidelines, mortgage servicing and the client relationship. The underwriting and fulfillment services provided by First National will enable TD to further enhance its already strong presence in the mortgage broker channel.
"This is an important agreement that leverages the distinct capabilities and strengths of both parties," said Stephen Smith, Chairman and Chief Executive Officer of First National. "For First National, it provides a new source of income that we hope will grow over time."
First National will create a separate division to provide these services from its offices across Canada. "The mortgage broker distribution channel accounts for about $70 billion of new mortgage originations each year," said Scott McKenzie, Senior Vice President, Residential Mortgages. "This agreement further validates the channel's relevance where First National will continue to be a lender in its own right."
"We are very pleased to be chosen for this mandate," said Stephen Smith "It's a clear endorsement of our industry leading technology and expertise in the independent mortgage broker channel by one of Canada's premier financial institutions."
To ensure a successful transition, First National will assume responsibility for underwriting and fulfillment processing services on an incremental, regional basis beginning in early 2015. By mid 2015, the agreement will encompass all of Canada.
About First National Financial Corporation
First National Financial Corporation (TSX: FN, TSX:FN.PR.A) is the parent company of First National Financial LP, a Canadian-based originator, underwriter and servicer of predominantly prime residential (single-family and multi-unit) and commercial mortgages. With over $77 billion in mortgages under administration, First National is Canada's largest non-bank originator and underwriter of mortgages and is among the top three in market share in the mortgage broker distribution channel. For more information, please visit www.firstnational.ca.
SOURCE First National Financial Corporation
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