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Lawyers cautioned on the professional risks of syndicated mortgages

Thursday, November 09, 2017 @ 8:40 AM | By Jesmond Wong

On Oct. 24, 2017, the Law Society of Upper Canada issued a notice to lawyers concerning syndicated mortgages and syndicated mortgage investments (SMIs).

A SMI is a complex mortgage where more than one person or a group of people pool their own funds to usually invest in a real estate development. Simply put, a SMI is a mortgage where more than one person lends money to a third person. SMIs are typically promoted and marketed by borrowers who cannot raise funds from conventional lenders.

Characteristics of...