About PEMI®



Contents

  1. 1 Who & Why Is The Private Equity Mortgage Institute PEMI®?
    1. 1.1 International Private Equity Mortgage Institute IPEMI™
    2. 1.2 What is the private equity mortgage industry group?
  2. 2 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?
    1. 2.1 Benefit of "Private Lending" for Consumers (Applicants or Borrowers)
  3. 3 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? 
    1. 3.1 Benefit of "Private Lending" for Investor-Lenders
  4. 4 Why all the Fuss?
    1. 4.1 Benefit of "Private Lending" for Government Licensed or Regulated Mortgage Credit Intermediaries
  5. 5 The Need for PEMI® and a Formalized Professional Standard; A Litigation Tested, Internationally Standardized, Scientific-Method-Based, Regulatory Recognized Professional Framework
  6. 6 How is the PEMI® Standard a Litigation Tested, Internationally Standardized, Scientific-Method-Based, Regulatory Recognized, Professional Liability Insurer Trusted, Professional Framework?
  7. 7 Private Equity Mortgage Institute PEMI®: An Industry Body Borne Out of Science and Technology
  8. 8 Conformity Science, “principles of ‘blockchain’” (Bungay Unification of Quantum Processes Algorithm) and the dawn of "lossless" Commerce
  9. 9 PEMI® Mission 
  10. 10 PEMI® Project Charter  
  11. 11 What does the Private Equity Mortgage Institute do?
  12. 12 Where Are We?

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®) 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 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 by the term of art: "private lenders"; and generically, such transactions are referred 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 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 brokersLearn 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® 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)

Learn more

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.