Risk Factors Are Outlined In Item 8 Of The Offering Memorandum.
Risk Factors Continue To Exist Notwithstanding The Risk Mitigation Steps Outlined Below

Underwriting and Approval Expertise

The Permanent Investment Corporation is the Manager of The Permanent Mortgage Investment Corporation. The Permanent Investment Corporation Management Team, consisting of Steve Bainbridge and Rick Moran, has in excess of 60 years experience in the Residential Mortgage Industry in Canada.

Approval Committee

A tiered level of approval limits assures the investor that no one person has the authority to lend large blocks of funds. Level 1 – Mortgages up to $75,000.00 (Mr. Bainbridge). Level 2 – Mortgages over $75,000.00 and up to $100,000.00 (Mr. Bainbridge and Mr. Moran jointly). Level 3 - Mortgages exceeding $100,000.00 require Credit Committee approval. The Credit Committee is a group of five (5) industry experts which will include Mr. Bainbridge and Mr. Moran  and three others. Any three of whom may approve the mortgage provided either Mr. Bainbridge or Mr. Moran is one of the authorizing persons.

Ongoing Servicing

The ongoing servicing will be conducted by a company such as MCAP Mortgage Servicing, a Standard & Poors “AA” rated company. The MCAP role will include payment processing, arrears control, annual realty tax confirmation, fire insurance confirmation/control, litigation and monthly status reporting.

Appraisals

All appraisals will be ordered from our “Approved Appraiser List” only through one of two electronic appraisal ordering systems. This helps prevent any collusion between the person ordering the appraisal and the appraisal. Each appraisal will subsequently be reviewed for accuracy by a Certified Residential Appraiser (CRA).  Each appraisal must also adhere to our strict appraisal requirements such as a minimum of 5 colour pictures of the property including interior photos.

Diversity of Properties/Security

The risk to the investor is further mitigated by investing in a large group of mortgages as opposed to a single property.

Adherence To Approval Guidelines

An extensive underwriting Policies and Procedures manual has been developed which outlines the underwriting, approval and collection policies which will be adhered to. A copy of this document is available to the investor if requested.

Advisory Council

We have organized an Advisory Council consisting of highly experienced individuals from within the Canadian Mortgage, Legal and Investment communities who will review the direction and practices of the company on a quarterly basis and offer their guidance.

Independent Forensic File Audit

We have engaged the services of an independent forensic financial auditor who will review a random selection of files on a quarterly basis to ensure adherence to corporate policies and procedures. A report of the audit findings will be available to our investors. 

For more detailed information in respect to The Permanent Mortgage Investment Corporation please refer to our offering memorandum, including the Risk Factors therein, a copy of which may be obtained from the Manager.