Cervus Financial Group Inc.

Cervus Financial Group Inc.

September 12, 2005 08:40 ET

Cervus Adds Over 125 New Mortgage Broker Companies Over The Last 90 Days Under Its Multi-Tiered Partners Program

TORONTO, ONTARIO--(CCNMatthews - Sept. 12, 2005) - Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), is a financial services company dedicated to providing mortgages to selected mortgage brokers. The company is pleased to announce the success of its multi-tiered partners program.

Cervus launched the multi-tiered partners program May 17, 2005 and since that time has added 125 new companies with 727 mortgage broker agents. In addition, these new companies now comprise 50.8% of the total approved application volume contributed by all mortgage brokers, including the 17 direct partners. Cervus has 219 Mortgage Broker companies and 3,483 broker agents signed to date.

"We are adding approximately 8 new Mortgage Broker companies per week" states Gary Bartholomew, CEO. "We have found the adoption rate among these new partners to be extremely quick, producing mortgage volumes within an average of 33 days of signing onto the Customer for Life Program."

Our Multi-Tiered Partners Program is comprised of Direct Partners, Associate partners and Affiliate partners. Direct Partners are national or regional in scope with annual origination volumes of $100 million or greater, Associate partners are mid sized regional firms that produce between $50 million and $100 million per year in annual origination volume, and Affiliate partners are those firms that produce between $25 million and $50 million in annual origination volume. Cervus has launched the multi-tiered partners program in Ontario, Alberta and British Columbia.

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 $30B 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' 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.
    Tracey McLaughlin
    Investor Relations
    (416) 861-1315 ext 262
    Cervus Financial Group Inc.
    Gary Bartholomew
    (416) 861-1315 ext 226