About PEMI®
Who & Why Is The Private Equity Mortgage Institute PEMI®?
Advocacy, education, professional standards and certification body specific to the mortgage industry group within the private equity industry.
The Private Equity Mortgage Institute PEMI® (www.peminstitute.org) is the global voice of Chartered Private Equity Mortgage Professionals C-PEM®-P and the Consumer, Corporate & Professional Education Division of MQCC™ the Money Quality Conformity Control Organization, incorporated as MortgageQuote Canada Corp.; headquartered in Calgary, Alberta, Canada and trading in up to 119 countries. MQCC™ is an organization classified by the United Nations (UN), Department of Economic and Social Affairs (DESA), Statistics Division (UNSD) International Standard Industrial Classification of All Economic Activities (Revision 4) involved in the following industry classification sections or classes:
Section J (Information and communication)
Section K (Financial and insurance activities
Class 6492 > credit granting; money lending outside the banking system
Class 6619 > activities auxiliary to financial service activities; activities of mortgage advisers and brokers
Section M (Professional, scientific and technical activities) This section includes specialized professional, scientific and technical activities. These activities require a high degree of training, and make specialized knowledge and skills available to users
Section N (Administrative and support service activities)
Section P (Education)
Section S (Other service activities)
The North American Industry Classification System (NAICS) equivalent classification to the UNSD Classes is:
non-depository credit intermediary
mortgage and non-mortgage loan brokers
Similar industry equivalencies exist in all countries who participate in the United Nations.
Subject to the jurisdiction, from a governance (statutory or regulatory) perspective, MortgageQuote Canada Corp. MQCC™ business activity, namely, real-estate-secured (mortgage) intermediary activity, are deemed to be:
a regulated activity
non-regulated activity
regulatory exempt activity
free trading activity
In its country of origin, Canada, MortgageQuote Canada Corp. MQCC™'s real-estate-secured (mortgage) intermediary activity is regulated by three provincial or territorial jurisdictions:
Alberta - regulated by the Real Estate Council of Alberta (RECA)
British Columbia - regulated by the Financial Commission of British Columbia (FICOM)
Ontario - regulated by the Financial Services Regulatory Authority (FSRA fka FSCO) (FSCO #12279)
MortgageQuote Canada Corp. MQCC™ may trade in other Canadian provincial or territorial jurisdictions, subject to statutory or regulatory requirements or exemptions.
In Canada, education in private equity mortgage (PEM®) brand subject matter, competency and proficiency credentialing is an unregulated activity. Providing advice respective specific financial transactions, might be subject to regulatory oversight.
International Private Equity Mortgage Institute IPEMI™
PEMI® operates within the global industry framework of the International Private Equity Mortgage Institute (IPEMI.org, www.ipemi.org), a global association also founded by MortgageQuote Canada Corp. MQCC™, comprised of real estate finance professionals including: investors, lenders, mortgage bankers, licensed brokers and licensed agents; who trade in the highly specialized field of Peer-to-Peer (P2P) and Private (Non-Institutional, Non-Syndicated, Non-Regulated, Regulatory Exempt or Free Trading) Equity Mortgage (PEM®) lending transactions (also known as Certified Private Equity Mortgage (PEM®) transactions) within the Tier 2 capital market
What is the private equity mortgage industry group?
The private equity mortgage industry group consists of individuals and organizations that trade in what is classified as digital (private electronic money PEM®) and non-digital, non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow securities and related financial instruments, secured by real estate.
Capital seekers, Borrowers, Investors or Lenders who trade in private equity mortgage instruments are typically - but not always - private individuals or organizations classified as: non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading entities; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow entities.
Historically and generically, such investor-lenders are referred to by the term of art: "private lenders"; and generically, such transactions are referred to by the term of art: "private mortgages". Terms of Art are not defined consistently - depending on the subject matter - so have broadly accepted meanings and applications-of-use. Due to inconsistent definitions and applications-of-use of the terms of art: "private lender" or "private mortgage", there is a high degree of confusion within the global marketplace when it comes to distinguishing a credible, non-institutional, non-syndicated, non-regulated, real estate debt industry participant or transaction, from one that is not.
What Good is Non-Bank, Non-Institutional, Non-Syndicated, Non-Regulated or Regulatory Exempt, Free Trading finance; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance for Borrowers?
Benefit of "Private Lending" for Consumers (Applicants or Borrowers)
Lending options when banks or other regulated institutions "say no", or "are too slow", or are simply not competitive, people are able to borrow mortgage money from private individual or private company investors who have surplus cash savings "on hand" and want to invest this money; so long as the investment is secured by some form of real estate.
When compared to traditional mortgage solutions, private equity (peer-to-peer) mortgage transactions are appreciated because they normally offer a degree of customization and flexibility than what traditional underwriting standards permit. Further, there is a singular human being (private individual lender), instead of a nameless, faceless corporation or agent for a pool of investors, who can make decisions on an individual basis in matters of underwriting, negotiation, default, enforcement, repayment or administration. This benefit is often associated with a premium paid in the overall cost of borrowing.
These are not government regulated mortgage lenders, so there are no restrictions on how the investor-lenders choose to lend their money. If an investor-lender likes your story and it makes sense to them, you will be approved.
Borrowers can communicate with individual lenders directly on a peer-to-peer basis, or through a quality managed network of licensed mortgage brokers. Learn more.
What Good is Non-Bank, Non-Institutional, Non-Syndicated, Non-Regulated or Regulatory Exempt, Free Trading finance; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow for Investor-Lenders?
Benefit of "Private Lending" for Investor-Lenders
Why all the Fuss?
Money; lot's of it. The business is lucrative AND there is an absence of direct government or regulatory oversight. It is not unheard of for Private Equity Mortgage PEM® investor-lenders to earn annual rates of return of 8%, 12%, 22%, 30% and more, in a safe, fully secure manner, with minimal government or regulatory oversight. The benefits of PEM® brand goods and services are far reaching, from having less risk than the stock market to having greater security than the bond market.
Fully secured by real estate
Canadian RRSP eligible (www.mortgagersp.com)
Simple; no offering memorandum, prospectus required
Satisfaction of out-performing the public markets
Lower beta (market volatility risk)
Higher alpha (excess return on an investment relative to the return on a benchmark index)
Secondary benefit is safety. How? Through simplicity.
PEMI® Safety Through Simplicity™ Principle
When compared to other investment opportunities, investment in private equity mortgage transactions (PEM)® are comparatively simple because it is comparatively low risk. It is for this reason PEM® designated transactions are not subject to the rigorous disclosure requirements and regulatory scrutiny of investments found in other investor markets, namely, the public capital markets. In Canada and other countries, investing in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow securities and related financial instruments, secured by real estate does not require disclosure of disclosure documents, namely, prospectus or offering memorandum.
Benefit of "Private Lending" for Government Licensed or Regulated Mortgage Credit Intermediaries
options for customers who may not be well-served by traditional lenders; banks, trust companies.
increased fee opportunity for those credit intermediaries who have the competency and proficiency to trade in critical or complex, high value transactions.
maintain customer relationships, rather than losing the customer to a competitor.
increased market share.
Benefit of MQCC™ original trademark "Principles of 'BlockChain'™"-based "Private Lending" for Government & Regulators
National and International benchmark standards for consumer safety and quality.
Systems that identify, mitigate and prevent predatory behaviour and predatory actions.
Public trust
Benefit of MQCC™ original trademark "Principles of 'BlockChain'™"-based "Private Lending" for Business Risk Management & Corporate Liability Insurers
Measurably, empirically, reduced errors and omissions claims
Happy insured customers
Reduced Insurer loses
Increased insurer profits
Public Trust
The Need for PEMI® and a Formalized Professional Standard; A Litigation Tested, Internationally Standardized, Scientific-Method-Based, Regulatory Recognized Professional Framework
After over a decade of commercialization of a the world's first "cryptofinancial" network by Mr. A. K. (Anoop) Bungay and after identifying nonconformity events resulting in confusion, distress, financial loss, regulatory complaints or litigation by inexperienced or unsophisticated mortgage applicants and borrowers and inexperienced or unsophisticated mortgage investor-lenders, it was apparent that a formal, professional approach was required.
Many of the identified nonconformity events were caused through errors, omissions, inexperience (incompetent) or negligence by individuals licensed as intermediaries (government licensed Brokers) who claimed to be experts in the domain of non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading finance; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance for real estate debt transactions, when they were not.
Indeed, some material risk to consumers was caused by real estate debt transactions which misdescribed or deceptively mis-described as non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading finance; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance nature, when they were not.
Further, as global regulatory bodies become more interested in Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow due to a lack of global experts in the domain, legislators, regulators and policy makers are misdescriptivel applying Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow labels to business processes that are not.
Misdescriptive or deceptively misdescriptive application of terminology in legislative, regulatory or commercial scope does harm to the general public.
Through the establishment of standards, criteria, technology, business methods, guidelines, techniques, patent pending, non-patented proprietary and trademark terminology including: Private Equity Mortgage (PEM®), the Private Equity Mortgage Institute PEMI® provides
General Public,
Consumers,
Customers,
Prospective Customers,
Industry,
Regulators,
Regulatees,
Investors,
Shareholders,
Stakeholders,
Legislators
Government , and
related parties
with distinguishing marks and source identifiers for non-institutional, non-syndicated, non-regulated, real estate debt transactions and related industry professionals.
Members and Fellows of the Private Equity Mortgage Institute hold the prestigious C-PEM®-P designation.
How is the PEMI® Standard a Litigation Tested, Internationally Standardized, Scientific-Method-Based, Regulatory Recognized, Professional Liability Insurer Trusted, Professional Framework?
Litigation Tested
MQCC, developer of PEMI®'s BlockChain Quality Management System (CBQMS™) a meta-operating system for use by PEMI® Charter holders and licensed members, was tested for integrity through a litigation process between MQCC and some members of the International Council of Legal Regulators (ICLR.org).
Internationally Standardized
Registered to the Canadian National (and international equivalent) Standard for Quality Management Systems CAN/ISO 9001:16 (the risk-based, ISO 9001:2015), the conduct of all PEMI® Charter holders must conform to the requirements of this standard.
What is the risk-based, ISO 9001:2015?
This is a Canadian National Federal Standard (and international equivalent in over 119 countries) for systems which tells government, industry and consumers (you: the general public) that an organization's goods and methods (services) are worthy-of-your-trust; "safe", "reliable" and "good"; "better", "safer" and "more efficient".
The risk-based ISO 9001:2015 is part of a broader family of standards called the ISO 9000 family of standards.
The ISO 9000 family of standards are published by the International Organization of Standardization (ISO); an international organization whose founding members include: Canada, USA and the United Kingdom (UK).
Standards like ISO 9001:2015 are recognized for consumer trust by all major international organizations including the United Nations (UN); Organisation for Economic Co-operation and Development (OECD™); World Intellectual Property Organization (WIPO™) and the World Trade Organization (WTO™).
Learn more at www.mqcc.org or read the books written by Anoop Bungay at your local online bookstore.
Scientific-Method-Based
Higher level activities follow the "Plan-Do-Check-Act" model, which is the scientific process of systematic observation, measurement, experiment, formulation, testing and modification of hypotheses (Source). This processes resulted in the creation of a a body of work for developing the professional framework including:
Terminology, Concepts
Taxonomy, Ontology
Identities, Reference Architecture
Information Technology applications
National and International Standardization
Governance, Audit
System Conformity to Statutory, Regulatory and Competition Bureau (a Canada law enforcement agency) requirements
This is an incomplete list
Regulatory Recognized (Audited, Scrutinized)
Conforming to ISO 9001:2015, a risk-based system, the PEMI® framework (methods and products) for professional conduct is based upon international best practice standards and Canadian equivalent National Standards. National Standards are recognized by the Federal Crown Corporation, the Standards Council of Canada says: Standards help to ensure better, safer and more efficient methods and products, and are an essential element of technology, innovation and trade. Source: Standards Council of Canada.
The CAN/ISO 9001:16 Quality Management Standard is recognized by all federal and regulator and policy makers in Canada pursuant to the Canadian Parliament Cabinet Directive on Regulatory Management; including prudent provincial regulatory bodies pursuant to the cooperation principle; and trusted by over 119 countries, world-wide. See Country.MQCC.org to see the Global Country Network GCN™.
MQCC and PEMI® are both scrutinized or audited (or both) by regulatory bodies; and some Canadian regulatory bodies recognize MQCC's role in making Canadian non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading finance transactions; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance transactions better, safer and more efficient.
Professional Liability Insurer Trusted
Professional Liability Insurers (risk managers and underwriters) recognize MQCC's global leadership in reducing risk in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading finance transactions; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance transactions pursuant to continuous registration to ISO 9001:2000, ISO 9001:2008 and ISO 9001:2015 from May 9, 2008.
Private Equity Mortgage Institute PEMI®: An Industry Body Borne Out of Science and Technology
Formation of PEMI® was borne out of a non-novel, new field of study named conformity science and the discovery, development, commercialization of the MQCC® trademark "Principles of 'Blockchain'™" (Bungay Unification of Quantum Processes Algorithm) for the world’s first Non-Bank, Non-Institutional, Non-Syndicated, Non-Regulated or Regulatory Exempt, Free Trading Securities and Related Financial Instruments; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Electronic Finance System on April 9, 2005; and subsequent registration thereof, of a subordinate Quality Management System, to ISO 9001:2000, on May 9, 2008.
Conformity Science, Trademark “Principles of ‘Blockchain’™” (Bungay Unification of Quantum Processes Algorithm) and the dawn of "lossless" Commerce
Borne out of nearly two decades (commencing at least as early as August 2001) of scientific-method-based research, discovery, development, commercialization, litigation testing and regulatory scrutiny of the MQCC® trademark "Principles of 'Blockchain'™" (Bungay Unification of Quantum Processes Algorithm) for the world’s first Non-Bank, Non-Institutional, Non-Syndicated, Non-Regulated or Regulatory Exempt, Free Trading Securities and Related Financial Instruments; also known as a Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Electronic Finance System on April 9, 2005; and subsequent registration thereof, of a subordinate Quality Management System, to ISO 9001:2000, on May 9, 2008; one benefit to participants in PEM® designated financial transactions is the concept of "lossless".
"Lossless" is a core principle of the underlying conformity science and a peculiar quality characteristic of commerce in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading finance transactions; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance transactions; when transacted in the MQCC® trademark "Principles of 'Blockchain'™" based-system.
The MQCC Lossless Principle directly affects the three (3) PEMI® Primary Risk Classes (see Risk section of PEMI® website)
borrowers
investor-lenders
brokers (government licensed credit intermediaries)
A detailed rationale for application of the term "lossless" in a non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt and free trading finance; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance setting for an investing and lending application, was explained in a letter from Mr. A. K. (Anoop) Bungay, Founder of MQCC™ and the Private Equity Mortgage Institute PEMI® to some professionals employed or functioning as lawyers licensed by members of the International Conference of Legal Regulators (ICLR) or advisors to securities commissions that are members of International Organization of Securities Commissions (IOSCO).
Read the MQCC™ Lossless Principle document here.
PEMI® Mission
PEMI®'s mission is to advance professionalism, ethics, quality, global standards (ISO 9000, GAMUS.org), methodologies, advocacy, compliance through Certified BlockChain Quality Management Systems (CBQMS™), business & operational practices through the professional development of real estate finance commerce, worldwide; within a work-integrated-learning (WIL) environment; known by the distinctive MQCC® trademark source identification phrase: “Learning, Education, Training, Testing, Accreditation and Registration” Program or the MQCC® PEMI® LETTAR™ Education Program.
The MQCC® PEMI® LETTAR™ Education Program provides a de jure national (federal) and international equivalent in upto 118+ countries, program of education that meets or exceeds quality standards expected of:
Private Colleges
Private, For-Profit Institutions offering University-Level (Undergraduate, Graduate (Masters, Doctoral)) Degree Programs
Public Colleges
Technical Institutions
Read the MQCC® Normative Reference Textbook to learn more about work-integrated-learning (WIL) programs; CAQC Campus Alberta Quality Council.
PEMI® Project Charter
The Private Equity Mortgage Institute (PEMI®) was envisioned in 2003 by Mr. A. K. (Anoop) Bungay of Calgary, Alberta, Canada. The goal was to create an organization whose principles were modeled by "highest and best use" standards, to assure beyond-reproach standards of high quality service outcome for all stakeholders who benefit from PEMI® matters.
Given PEMI® originating location in Canada, PEMI® chose to model its mandate in accordance with best practice promoted by Canada's highest level administration body, namely, the Treasury Board of Canada. The Treasury Board is a Cabinet committee of the Queen’s Privy Council of Canada.
It was established in 1867 and given statutory powers in 1869. The Treasury Board is responsible for accountability and ethics, financial, personnel and administrative management, comptrollership, approving regulations and most Orders-in-Council (Source).
The Treasury Board Information, Technology and Project Management department issues Policies, directives and standards, Publications and guidance on matters of Project Management and how organizations (like PEMI®) may improve "the likelihood of success of time-limited initiatives by applying certain practices. These practices include establishing clear accountabilities, defining objectives and outcomes, establishing the scope, planning, monitoring, and reporting controls for project activities. Publications and guidance" (Source).
After determining that a Business Case for creating PEMI® was valid, Anoop Bungay (as PEMI® Originating Sponsor and PEMI® Project Manager) sought to support the case by development of a Project Charter, a "document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities" and describe "objectives, the scope, the deliverables, and the resources required" for the project (Source).
Any PEMI® candidate that meets the PEMI® project charter, is deemed a PEMI® Chartered Professional.
What does the Private Equity Mortgage Institute do?
Consumers (borrowers), investors, lenders, mortgage bankers, licensed brokers and licensed agents who participate in Private Equity Mortgage (PEM®) transactions in our countries-of-interest (see below), will benefit from the Private Equity Mortgage Institute as follows:
Professional Designation (Qualification & Recognition)
Private Equity Mortgage PEM® Education
Private Equity Mortgage PEM® Standards
Compliance through Quality Management Systems (ISO 9001:2015, Sarbanes-Oxley)
Audit
Industry Advocacy
Borrower Advocacy
Research, White Papers & Policy Reports
Expert Witness
Where Are We?
Envisioned in 2003 and initially operating within the Canadian market, the International Private Equity Mortgage Institute has expanded its scope of interest include Australia, United Kingdom and USA. All IPEMI.org Members and Fellows operate in accordance with respective national, regional and local laws.
The regional division of IPEMI.org provides manages industry professional-, and policy-level education services leading to the qualification, certification of Chartered Private Equity Mortgage Professionals C-PEM®-P within the core fields of mortgages, technology and quality management. The International Private Equity Mortgage Institute consists of member organizations from the following countries: