Celebrating the successful integration of Scotia Express Service and Maple Trust Company, Bank of Nova Scotia announced the launch of Scotia Mortgage Authority on Sunday.

“Scotia Mortgage Authority was created by bringing together the best of two great organizations. As the No. 2 acquirer of broker-originated mortgages, we’re well positioned to continue recording strong results in the mortgage broker channel, by providing best-in-class service, products and relationship management,” said Robin Hibberd, executive vp, personal lending and insurance, Scotiabank.

Scotiabank acquired the mortgage business of Maple Financial Group, which included Maple Trust Company, on Feb. 14, 2006. With this purchase, Scotiabank’s mortgage originations through the mortgage broker channel were doubled. At the time, Maple Trust’s had $7.5 billion in mortgages under administration and more than 42,000 mortgages outstanding.

The launch of Scotia Mortgage Authority will result in Scotia’s mortgage broker partners having access to a broader range of products for sale to their clients. These include conventional mortgages, multiple adjustable rate mortgage terms, lines of credit, and the popular Scotia Total Equity Plan (STEP).

“We are strategically focused on increasing new sources of sustainable revenues. Acquiring new customers is an important part of this strategy,” said John Webster, the former Maple Trust head who will lead Scotia Mortgage Authority. “By growing our third-party mortgage origination channel, we will develop many new partnerships with mortgage brokers. This will lead to new homeowners being introduced to Scotiabank, and create opportunities for great new relationships.”

Webster unveiled Scotia Mortgage Authority in an address at the Canadian Association of Accredited Mortgage Professionals (CAAMP) conference in Vancouver.

As the No. 3 provider of retail mortgages in Canada, Scotiabank generates approximately 40% of new mortgage volumes through the mortgage broker channel, the bank said.

“With a very strong foundation, Scotia Mortgage Authority is well positioned to continue being a leader in third party mortgage originations,” added Webster.

Webster said Scotia Mortgage Authority will focus on delivering better service, offering a broad range of innovative, highly competitive products, and effectively managing broker relationships.

A cornerstone of Scotia Mortgage Authority’s offering to brokers is an exclusive, business-to-business Web site that will enhance the efficiency of the brokerage process, while garnering higher levels of interactivity and security.

Canadians hold about $880 billion in residential mortgage credit, according to CAAMP’s 2008 mortgage market report. Mortgage credit increased an average of $82 billion per year, or 11.5% in the last three years, and an average of 7.2% over the past 15 years. Banks account for 55% of residential mortgage credit in Canada.

An estimated 72% of mortgage holders consulted a bank for their current mortgage, while 40% consulted a mortgage broker, according to the CAAMP report.

According to the Canada Mortgage and Housing Corp. 2007 Mortgage Consumer Survey, independent broker origination of mortgages is on the rise, as brokers managed 33% of home purchases last year, up 6% over 2006. The survey said more than 90% of Canadians who used independent brokers valued their service.

IE