Preservation of Capital is the cornerstone philosophy of Paramount Equity Financial Corporation. More than just a reassuring motto, the actual work of protecting our investors’ capital is the very core of our business model and daily practices.
Market volatility creates risk for investors; the type of risk that only in-depth, thorough market research can detect. Experience in knowing how to apply the findings of our research to our lending decisions is also critical in keeping investors' funds safe. Our exceedingly low default and forced-sales rates are where our years of experience in private lending become evident, setting Paramount Equity Financial Corporation apart from the rest of the private lending market.
Many lenders take a convenient shortcut when making lending decisions by using what is called "matrix lending". Matrix lending relies on a calculated statistical likelihood of bad mortgages and financial losses occurring within a lending pool. A lender that takes a matrix lending approach to make financial decisions relies upon the rest of their lending portfolio to cover those expected losses. In contrast, Paramount Equity Financial Corporation does not apply matrix lending practices, and never assesses lending opportunities on a statistical basis to determine the risk of default. We examine and investigate every loan application on its own merits, including investigating the borrower, the security property, and the geographic market within which the property is located, with a particular focus on the local real estate value trends and overall economic indicators. Additionally, Paramount Equity Financial Corporation also shares proprietary market knowledge and insight with its industry partners, which include many of Canada's leading National and Provincial lending institutions, together giving our underwriting teams the market knowledge they need to advance only the safest lending opportunities for funding.
Based on years of experience in knowing what works in real-world lending and default recovery scenarios, we then customize the terms and conditions of our mortgage agreement in a number of specific, proprietary ways to suit the lending situation, in order to maximize the protection of the investor's capital on every mortgage. Our Mortgage Administration department works proactively during the life of every mortgage to correct any defaults immediately and professionally, which preserves both the integrity of the loan and the borrower's credit rating.
Together, our in-depth market research and experienced, conservative lending practices continue to ensure that Paramount Equity Financial Corporation maintains exceedingly low default and forced-sales rates that are the envy of the industry.