Industry participants are re-thinking their business operations as a result of mortgage lenders no longer being able to operate outside of a securities law regime as of March 1, 2021. Many lenders that previously qualified investors on a deal by deal basis in order to avoid having to become registered are now establishing pooled funds to ease the management of a growing investor base and to better compete on investments where other lenders are ready to commit without needing to syndicate a deal. One of the more popular pooled vehicle structures that is being turned to is the mortgage investment corporation (MIC).

In this publication we discuss what to keep in mind when structuring a MIC, such as dealer registration and other obligations, as well as the evolving regulatory framework for syndicated mortgage investments (SMIs).