- Report: #1477671
Complaint Review: Builder’s Capital Mortgage Corp. - Calgary Alberta
Reported By:
Builder Victims Group -
Calgary, Alberta, Canada
Submitted:
Updated:
-
Author Not Confirmed
Why?
Builder’s Capital Mortgage Corp.
405-1210 8th Street SW Calgary, T2R1L3 Alberta, Canada
Phone:
403-685-9888
Web:
Www.builderscapital.ca
Categories:
Business Rating:
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Builder’s Capital Mortgage Corp. Sandy Loutitt John Strangway Mortgage Loan Scammers! Calgary Alberta
Report Attachments
I am writing this report on behalf of 8 small residential new home builders in Calgary that currently have builder mortgage loans with Builders Capital Mortgage Corp. in Calgary. This is only the start to the official takedown of these mortgage lending cons! The President is a half native midget named Sandy Loutitt and his partner is John Strangway who hides in the back room!
These two guys or perhaps he-she’s have zero money themselves. They went public on the stock exchange to con innocent investors to place monies in their mortgage fund. Sad part for the investors, these two clowns have absolutely zero underwriting skills! None! They approve loans to some of the worst projects in Calgary, sometimes not even viewing the land or revising the plans!
They pride themselves with quick hassle free lending to builders. In return they charge a hefty 3.5% placement fee and 12% interest rate. Once they approve your loan amount, they take their full 3.5% fee from your first draw. Then they fund close to your full draw request amounts for the first 6 months then start shorting your draws by nearly 50-75%.
As you get closer to completion they start making excuses on the loan to cost ratios, market conditions etc and stop funding you. At this point, builders are left empty handed and cannot pay trades and suppliers with builder liens being filed. Requests for funding from Builders Capital is ignored and shortly after they send the file to their lawyers, PMR Law to start demand letter and statement of claim for foreclosure! So Builders are left with no funding and now need to spend money on lawyers to defend protect their projects.
I have been in the home building industry for over 20 years and have never ever dealt with a more corrupt lending group then Builders Capital. They are deceitful human beings! The good part to all of this is at least 8 home builder clients of Builders Capital have retained a high profile lawyer in Calgary to start a class action law suit against Builders Capital and Sandy Loutitt and John Strangway.
Further, claims are being forwarded to the Alberta Securities Commission and RECA. The objective of this builders group is to make sure this company gets shutdown so no further hard working builders get hurt. If there are any other clients of Builders Capital that are experiencing similar treatment, please get in touch with us.
1 Updates & Rebuttals
Sandy
Calgary,Alberta,
Canada
The other side of the Story
#2UPDATE Employee
Mon, July 15, 2019
I am Sandy Loutitt the President of Builders Capital Mortgage Corp,
I am writing in response to the personal and professional attacks launched by the anonyms author of the above noted report.
As of July 15, 2019 we are not aware of any RECA or ASC case investigations and would welcome such as we are extremely confident that our operating practices are fully compliant with all applicable legislation and standards of good practice.
The fact that the author chose to conduct a personal attack against Mr Strangway and myself instead of giving specifics of the issues speaks volumes to the credibility of his or her argument.
Our draw process and expectations are clearly defined at the onset before the client ever incurs any cost, this is a standard practice.
If a client makes mistakes and erodes their equity position below a recoverable threshold we are left with no option but to foreclose. This option is typically perused as a last resort and we always exhaust all reasonably commercial options prior to this, however when we have obstructionist clients who are more interested in apportioning blame and lying then owning up to their own mistakes we must use the courts to attempt to recover our investors money.
Our standard operating practice is to view each property prior to each draw and underwrite each file based on its economic and technical merits. We have a long successful track record that is audited by an independent third party every year with the results of that audit published as a public record.
There is no group of builders launching any legal action, just one angry incompetent builder who chooses to hide behind aninimity and slander rather than owning up to his own mistakes.
