For more than 30 years, and through recessions and major real estate downturns, Romspen Investment Corporation's mortgage management team has provided investors with attractive yields by applying disciplined lending principles to defined commercial mortgage market niches. Sound commercial mortgage lending is not based upon a convenient financial model or even upon the supply of capital. Rather, it is based upon the availability of safe mortgages and a common-sense approach to lending. Romspen’s reputation in the industry as an active and knowledgeable manager has resulted in our receiving a high percentage of the commercial mortgage applications made in Canada.

Identifying safe loans requires careful underwriting. The process begins by interviewing the borrower and personally inspecting each property. This is followed by an intensive review of appraisals, financial information and other pertinent data. A proper exit strategy is developed and verified prior to issuing a commitment, while the borrower and the property continue to be monitored and reviewed until the mortgage is repaid.

We prefer short-term fixed rate mortgage loans of one to two years. Borrowers appreciate the predictability of their mortgage expense, while Romspen benefits from the early opportunity to revise terms and rates if market conditions change.

Successful lending involves an intense, hands-on process which is essential to avoiding losses. Capital preservation is always paramount as losses can reduce returns much faster than they can be increased by high interest rates.

The skill sets, experience and long-term commitment of Romspen Investment Corporation, as mortgage manager, enables the Romspen Mortgage Investment Fund to maintain a broad portfolio of performing mortgages that generate solid, predictable returns.