Scotiabank has decided to temporarily stop taking new loan applications until they can improve their internal business model and improve service. There is no timeframe on when Scotiabank will start taking new loan applications again, but they are aware of the negative reputation they have received and want to make the improvements necessary to improve their reputation. All loans we currently have approved and submitted prior to April 15 will be closed. We will continue to diligently work on these to close as quickly as possible. Currently there is no timeframe on when Scotia will again start taking applications. I anticipate it will be several months before they can get new procedures in place, but this is just a guess on my part. These things take time, and I commend Scotiabank for realizing there are problems with their service and that they are willing to take this drastic action to stop all new applications until they fix their current business model. This will be better for everyone in the long run. Scotia has also had problems with new brokers not knowing what they are doing and blaming Scotiabank, which is unfair to Scotia. Scotiabank will be requiring a more stringent approval process for the brokers who do business with them. Mortgages In Mexico is one of the long-time approved brokers with Scotiabank that remains in good standing, and once Scotiabank begins lending again, we’ll be there to offer our excellent service to you and your buyers.

I have a new source of money that I have begun to use as of last week. This is with a private investor, so the source of funds may be limited. It is a maximum of 50% of the value of the encumbered property, and we may be able to use property both in Mexico and the US/Canada. By increasing the total security for the loan, we can increase the loan amount for the purchase of the Mexico property. These loans can be closed in 4 weeks, depending on how busy the investor becomes. We only need to review 2 years of tax returns, 2 months of banks statements and a credit report – much less documentation than we are currently required to get. The interest rate for these loans is 10% and front end points will be 6% of the loan amount, with no other lender fees for the appraisal, wiring fees, etc. We will still charge our $200 application fee which we use to order credit and collect these documents for approval. We are the only company in Mexico who is working with this investor.

Remember also that we can do loans throughout Canada and in all 50 US States, so if your buyers have equity in their home country, we can assist them with getting a loan to pull out cash from their existing equity. If there is enough equity, they may not even need a loan in Mexico. I believe we are the only lender in Mexico who can lend in Canada, the US and Mexico to help put loan transactions together.

This is a difficult mortgage environment for all lenders everywhere. The new Dodd-Frank requirements are starting to kick-in in the US and we will likely see a fallout of mortgage lenders in the US. Only the strong, and agile lenders who can adapt to the new changes will continue to stay in business in the US. The same is true in Mexico as well. As you know, Mortgages In Mexico has been doing loans in Mexico since 2004 (longer than anyone) and we plan to continue to ride out the storm and be ready to originate a lot of loans once Scotiabank returns to the market. For now, we still have financing options that will be viable for some buyers who are looking for mortgage financing to purchase in Mexico.

Stay strong and continue doing the things necessary to be successful, and give me a call or send me an email when you have buyers looking for mortgage financing. We will all look back on these difficult times as something we’re glad is behind us!

We have heard talk of hard times and recession. We have chosen not to participate and our business is booming.
"The Mexico Mortgage Man"
Doug Jones, President (NMLS Lic# 139824)

918-398-9588 (Canada/US)
555-350-6331 (Mexico)
044-322-135-5822 (PV cell)
01 212 706 332 (UK)
617-600-9675 (FAX)
The Trusted Name in Mexico Home Loans since 2004
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