First National Financial Corporation
 | |
| Company type | Public |
|---|---|
| TSX: FN | |
| Industry | Credit Mortgage lending |
| Founded | 1988 |
| Founders | Stephen Smith & Moray Tawse |
| Headquarters | , |
Key people | Stephen Smith, Executive Chairman and Co-Founder
Jason Ellis, President and Chief Executive Officer Moray Tawse, Senior Executive Vice President and Co-Founder Rob Inglis, Chief Financial Officer |
| Revenue | $2.0 billion (2023) |
| $252.8 million (2023) | |
| Total assets | $143.5 billion (2023) |
Number of employees | 1,600 (2021) |
| Subsidiaries | First National Financial LP |
| Website | www |
First National Financial Corporation (First National) is a Canadian financial services company that is the parent company of First National Financial LP, a private lending institution based in Toronto, Ontario. First National is among the top three in market share in the mortgage broker distribution channel.[1]
First National is based in Toronto with over 1,600 employees[2] and five regional offices throughout Canada, including in Calgary, Vancouver, Halifax, and Montreal.[3][4]
As of 2021[update], First National announced a record $123.9 billion in mortgages under administration.[5]
History
[edit]Foundation and expansion
[edit]In 1988, Stephen J.R. Smith and Moray Tawse opened First National for business with its first office located in Toronto.[1][6]
In 1991, First National expanded its company to Western Canada and opened a second office in Vancouver. In 1995, First National opened its Halifax office. As the company continued to expand, First National opened another office in Calgary in 2000 and in Montreal in 2008.[3]
Becoming CMHC-approved
[edit]In 1991, First National became a CMHC-approved lender in Canada, allowing them to lend directly to borrowers.[7]
In 2001, First National launched Merlin, an online mortgage approval and tracking software system.[7][8] In 2003, the system expanded to include commercial mortgage administration and investor communications. In 2007, First National introduced My Mortgage, an online mortgage management tool.[7]
In 2006, First National became the first Canadian lender to offer the Canada Mortgage and Housing Corporation (CMHC) insured Interest Only Mortgage, meant to help qualified home buyers to lower their monthly mortgage payments in addition to help their month-to-month cash flow. The Interest Only Mortgage offers the option of paying only interest for the first five or ten years of a mortgage.[6]
On July 16, 2014, First National Financial Corporation announced that its subsidiary First National Financial LP will supplement the Toronto-Dominion Bank with underwriting and fulfillment processing services on mortgages originated through the Toronto-Dominion Bank's residential mortgage broker channel.[8]
2006 to 2024 - Growth
[edit]In 2006, First National had over $20 billion in mortgages under administration.[6] The following year in 2007, First National had $31.2 billion mortgages under administration, a 37 percent increase from 2006. The increase was mainly due to First National's growing market share in single-family residential mortgages and commercial mortgages.[4] In 2016, First National’s second quarter had a record high of $90.1 billion mortgages under administration.[9] By the end of that year, First National had a total of $99.4 billion in mortgages under administration.[10] In October 2017, First National Financial Corporation announced it had reached $100 billion in mortgages under administration.[11]
On October 1, 2015, Queen's University’s School of Business changed its name to the Stephen J.R. Smith School of Business in honour of the $50 million donation made by Stephen Smith, Chairman, CEO and Co-founder of First National Financial Corporation.[12]
Effective October 30, 2018, Jason Ellis fulfilled the role of Chief Operating Officer of First National Financial LP. This appointment came as the company continues to grow. Jason Ellis has been with First National since 2004, overseeing the Treasury and Capital Markets department and helped managed the company's relationships with investors. [13]
On June 19, 2019, the chairman and CEO of First National Financial LP, Stephen Smith, was inducted into the Canadian Business Hall of Fame.[14]
In January 2022. First National Financial Corporation announced the appointments of Stephen Smith as executive chairman of the board and Jason Ellis as president, chief executive officer, and director.[15]
As part of Bank of Montreal’s announced re-entry to the broker channel starting in early 2024, the bank confirmed it would be partnering with First National to provide its underwriting and funding services.[16]
In March 2024, First National Financial Corporation hit a landmark achievement by surpassing $50 billion in commercial mortgages under administration (MUA).[17]
Holdings
[edit]In 2017, First National administered $101.6 billion in mortgages, a 2% increase over 2017. 81% of its mortgages are insured by the Canadian Mortgage and Housing Corporation; 13% are conventional single family residential homes; and 6% are multi-unit residences and commercial spaces.[18]
In 2018, First National's revenue grew 10% to $1.2 billion, with $106.2 billion in mortgages under administration.[19]
In 2020, First National had $118.7 billion mortgages under administration and $1.38 billion in revenue. [20]
In 2021, First National's mortgages under administration grew to $123.9 billion.[21]
In 2022, First National's Mortgages under administration totalled a record high of $131 billion in 2022[22]
As of June 30, 2023, First National's mortgages under administration increase by 8% to a record level of $137.8 billion.[23]
Credit agency ratings
[edit]| Servicing Category | Rating |
|---|---|
| Primary Residential Mortgage Servicing | Good |
| Special Residential Mortgage Servicing | Good[24] |
| Servicing Category | Rating |
|---|---|
| Commercial Primary Servicer | CPS2- |
| Commercial Master Servicer | CMS3+ |
| Commercial Loan-Level Special Servicer | CLLSS3+ |
| Servicing Category | Rating |
|---|---|
| Primary Commercial Mortgage Servicing | Adequate |
| Master Commercial Mortgage Servicing | Adequate |
| Special Commercial Mortgage Servicing | Adequate[26] |
References
[edit]- ^ a b "First National Annual Report 2017". First National Financial Corporation. Retrieved 4 July 2018.
- ^ "First National Appoints Jason Ellis Chief Executive Officer, Stephen Smith Executive Chairman of the Board". finance.yahoo.com. Retrieved 2022-03-31.
- ^ a b "What does $100 Billion look like". First National Financial LP. October 2016. Retrieved 4 July 2018.
- ^ a b "First National Financial Corporation surpasses $100 billion in mortgages under administration". Canada Newswire. 12 October 2017. Retrieved 5 July 2018.
- ^ Corporation, First National Financial. "First National Financial Corporation Reports Fourth Quarter, 2021 Annual Results". www.newswire.ca. Retrieved 2022-03-31.
- ^ a b c Canada, Employment and Social Development (25 September 2006). "First National Launches New Mortgage Concept - Canada.ca". www.canada.ca. Retrieved 2018-07-19.
- ^ a b c "First National Begins 25th Anniversary Celebration". First National Financial LP. 26 March 2013. Retrieved 6 July 2018.
- ^ a b "First National to provide mortgage underwriting processing services to Toronto-Dominion Bank". www.newswire.ca. Retrieved 2018-07-19.
- ^ Randall, Steve (29 July 2015). "First National grows mortgage book in Q2 Which Mortgage Canada". Which Mortgage Canada. Retrieved 2018-07-19.
- ^ Randall, Steve (March 2017). "First National hits new record Which Mortgage Canada". Which Mortgage Canada. Retrieved 2018-07-19.
- ^ Vecina, Ephraim. "First National Financial Corporation reaches $100B milestone". Mortgage Broker news. Retrieved 2018-07-19.
- ^ "Business Education Has a New Name". Smith School of Business. Retrieved 9 July 2018.
- ^ Corporation, First National Financial. "First National Financial Corporation Reports Third Quarter 2018 Results, Announces Dividend Increase and Special Dividend Payment". www.newswire.ca. Retrieved 2019-01-08.
- ^ "The Canadian Business Hall of Fame Welcomes Four Noteworthy Companions". 2019-06-19. Retrieved 2019-07-04.
- ^ "The lender also elevates previous CEO to executive chairman of the board". 2022-01-17. Retrieved 2022-01-17.
- ^ Earnings·, Steve Huebl·Quarterly (2023-08-24). "First National comments on underwriting partnership with BMO, says move is an "endorsement of the channel" - Mortgage Rates & Mortgage Broker News in Canada". Retrieved 2023-09-08.
- ^ https://www.mpamag.com/ca/specialty/commercial/first-national-financial-hits-50bn-in-commercial-mortgages-originated/480739
- ^ "ANNUAL REPORT 2017" (PDF). Firstnational.ca. Retrieved 25 October 2017.
- ^ "First National 2018 Annual Report" (PDF). First National.
- ^ Corporation, First National Financial. "First National Financial Corporation Reports Fourth Quarter and 2020 Annual Results". www.newswire.ca. Retrieved 2021-03-18.
- ^ "A First National progress report". RENX - Real Estate News Exchange. 2022-03-29. Retrieved 2022-03-31.
- ^ "First National Financial Corporation releases Q4, year-round results". www.mpamag.com. Retrieved 2023-09-08.
- ^ "First National Financial Corporation releases Q2 results". www.mpamag.com. Retrieved 2023-09-08.
- ^ "First National Financial LP (Svrs): Rating Report | DBRS Morningstar". www.dbrsmorningstar.com. Retrieved 2023-09-08.
- ^ "Fitch Affirms First National's Commercial Servicer Ratings". www.fitchratings.com. January 18, 2023. Retrieved 2023-09-08.
- ^ "DBRS Confirms First National Financial's Primary, Master and Special Servicer Evaluations of Adequate". DBRS. 23 March 2017.