As part of the reclassifications, the Company's investment in MCLP and the related equity income are now shown separately to highlight the strategic importance of this investment.
Equity Income from MCLP: Equity income from the Company's 25% ownership in MCLP was $189,000 in the quarter compared to $nil last year as MCAP consolidated the results from the mortgage banking operations in 2003.
There were minimal occupancy and information systems expenses recorded in the quarter as these costs were covered in management expenses paid to MCLP which are included in salaries and administrative expenses.
MCAP incorporated a new subsidiary to hold its beneficial interest in MCLP.
CDP Capital - REA"), a wholly owned subsidiary of the Caisse acquired an additional 25% interest in MCLP in consideration of the contribution of cash and the commercial mortgage origination, underwriting, management and servicing business of CDP Capital - Mortgages, a subsidiary of the Caisse.
As a result of the above, the Company's beneficial interest in MCLP reduced from 50% to 25% and CDP Capital - REA interest increased from 50% to 75%.
There were no occupancy and information systems expenses recorded in the quarter as these costs are covered in management expenses paid to MCLP
, which are included in salaries and administrative expenses.