Cervus Financial Group Inc.

Cervus Financial Group Inc.

May 26, 2006 09:48 ET

Cervus Reclaims Top 10 Broker Lender Status in Canada

TORONTO, ONTARIO--(CCNMatthews - May 26, 2006) -

"Cervus Ranks 10th out of 47 Broker Lenders in Canada"

Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), is a financial services company dedicated to providing mortgages through select mortgage brokers. The company is pleased to announce that as at March 31, 2006 it has reclaimed its Top 10 broker lender status and again improved its market share. The company moved up from 12th out of 47 broker lenders, as it reported March 21st, 2006.

"It is with great pleasure that Cervus shares these results as it proves the "Customer for Life" Model continues to be widely accepted and supported by our broker partners and the Canadian broker community at large," states Grant MacKenzie, COO of Cervus.

He continues to say, "We are pleased to see the broker community embrace the concept of trailer fees tied to a model that routinely provides automatic approvals often resulting in commitments on the broker's computer in under 3 minutes. This supports the paperless mortgage process that we have built over the last 18 months."

The Filogix Canadian Mortgage Broker Market Report™ reports all mortgage originations processed through the Filogix technology platform utilized by the majority of Canadian mortgage brokers.

Cervus's unique model compensates the broker with a one time origination fee, a trailer fee for each year the mortgage remains with Cervus and a renewal fee upon renewal of the mortgage for another term. The model allows mortgage brokers to build their own book of business and provides the tools and products they need to retain the Customer for Life.
Cervus has continued to see increasing adoption rates for the "Customer for Life" business model.

About "Customer for Life"

The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus.

About Cervus

Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks to become a high-yield residential mortgage producer and the largest mortgage broker lender of conventional insured and insurable mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $22.5 billion in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers.

Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial services and related businesses. Cervus is focused on funding and servicing insurable conventional and high ratio insured residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario, Quebec, British Columbia and Alberta mortgage broker/lender legislation and is seeking similar regulatory approvals in other Canadian Provinces as required. Cervus's head office and Ontario operations centre is located in Toronto, with additional sales offices in Vancouver, Calgary and in Montreal. Cervus Financial Group Inc. conducts all lending operations through its wholly-owned subsidiary, Cervus Financial Corp.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Additional information about Cervus is available on SEDAR (www.sedar.com).

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cervus Financial Group Inc.
    Grant MacKenzie
    Chief Operating Officer
    (416) 861-1315 x 224
    Cervus Financial Group Inc.
    Peter Williams
    Chief Executive Officer
    (416) 861-1315 x 275