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TORONTO, March 19 /PRNewswire-FirstCall/ - Mortgagebrokers.com (the "Company") announced that its strategic alliance partner Remax Ontario/Atlantic Canada has launched a new website (www.remaxrsp.com) fully dedicated to its unique and exclusive program with MortgageBrokers.com. Under this partnership any of the 9,000+ RE/Max realtors are encouraged to use the services of MortgageBrokers.com and its rapidly growing national sales team.
By participating in this program, the portion of RE/Max sales professional's referral fees will be deposited into a Retirement Savings Account managed by Canada's largest insurance company Manulife Financial (http://www.manulife.com/remax ). Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.
In June of 2006, Remax Ontario Inc. and Mortgagebrokers.com consummated their 10 year strategic alliance, which included several RE/Max executives and franchise brokers participating in an equity offering by Mortgagebrokers.com. On June 9th of that year, the Company completed an offering in which it issued a total of 2,112,470 shares of its common stock and a purchase warrant at a price per share of $1.00.
Mortgagebrokers.com CEO Alex Haditaghi firmly believes that the Company is on track for sustainable growth and profitability in 2008, "Our business model is unique in that we are operating in a robust Canadian economy and a mortgage/housing industry that has avoided the sub-prime woes of the US market. Because we act only as funding "middle-men" between buyer and seller for residential and commercial mortgage transactions, we have eliminated any type of credit, underwriting or inventory risk on the loans we originate and close. The risk analysis and thus the burden, if any, are borne by the lending institutions. In addition, the Canadian mortgage industry, in general, has had very little interest in risky, sub-prime loans."
Haditaghi believes that Mortgagebrokers.com has the right model at the right time: "Our consolidation business plan is very attractive in environments such as we are in today because we can provide small and medium shop broker's access to strategic growth partners such as RE/Max Manulife, Wells Fargo Financial as well making available a larger lender base. This allows the broker to offer more competitive products, increase their brand power and utilize an infrastructure which will allow them to reduce their expenses by providing centralized back office services such as payroll, compliance and marketing".
With a current market cap of approximately $3.7 million, Mortgagebrokers.com feels that there exists tremendous potential for investors to participate alongside the Company in the ongoing expansion of its business model. In Haditaghi's opinion, the market value of Mortgagebrokers.com has been affected as a result of the overall weakness in the U.S. mortgage industry. Mortgagebrokers.com common stock is trading at all time low in spite of the fact that the Company has had seven consecutive quarters of revenue growth. Even with the current challenges in the residential and commercial real state market, Mortgagebrokers.com continues to grow and will continue to strive towards its goal of being North America's largest and fastest growing mortgage brokerage firm.
This share price does create a great opportunity for current shareholders and future shareholders to be part of a great company that is rapidly growing and has its goals set on being one of North America's largest mortgage brokers.
