----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**AMENDMENT      NO. 2  TO FORM 10-QSB**

**(Mark      One)**

| **x** | **Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934.** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended March 31, 2007.**

**or**

| **o** | **Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934.** |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from ______to______.**

**Commission      file number 333-105778**

**MORTGAGEBROKERS.COM      HOLDINGS, INC**

| **Delaware**                                   | **05-0554486**                                      |
|------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer Identification No.) |
| incorporation                or organization)  |                                                |

| **11-260                  Edgeley Boulevard, Concord, Ontario, CANADA** | **L4K                3Y4** |
|-------------------------------------------------------------------------|----------------------------|
| (Address                of principal executive offices)                 | (Zip                Code)  |

**877-410-4848**

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**MORTGAGEBROKERS.COM      HOLDINGS, INC.**

**FINANCIAL      STATEMENTS**

**INDEX**

** PART      I-- FINANCIAL INFORMATION**

|                   |                                                                       | PAGE                # |
|------------------------|----------------------------------------------------------------------------|-----------------------|
|                   |                                                                       |                  |
| Item                1. | Financial                Statements                                        | 2                     |
|                   |                                                                       |                  |
| Item                2. | Management's                Discussion and Analysis of Financial Condition | 23                    |
|                   |                                                                       |                  |
| Item                3. | Control                and Procedures                                      | 30                    |

** PART      II-- OTHER INFORMATION**

|                   |                                                               |   |
|------------------------|--------------------------------------------------------------------|--------|
| Item                1. | Legal                Proceedings                                   | 30     |
|                   |                                                               |   |
| Item                2. | Changes                in Securities                               | 30     |
|                   |                                                               |   |
| Item                3. | Defaults                Upon Senior Securities                     | 30     |
|                   |                                                               |   |
| Item                4. | Submission                of Matters to a Vote of Security Holders | 30     |
|                   |                                                               |   |
| Item                5. | Other                Information                                   | 31     |
|                   |                                                               |   |
| Item                6. | Exhibits                and Reports on Form 8-K                    | 31     |

** SIGNATURE**

----

**Item      1. Financial Information**

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**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

|                                                                                                                                                                                              |   | (Restated                , Note 3) |           |   |                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------------|--------|-----------------------------|--------|
|                                                                                                                                                                                              |   | **March                31**        |           |   | December                31, |   |
|                                                                                                                                                                                              |   | **2007**                           |           |   | 2006                        |   |
| **ASSETS**                                                                                                                                                                                        |   |                               |           |   |                        |   |
| **Current                Assets**                                                                                                                                                                 |   |                               |           |   |                        |   |
| Cash                and cash equivalents                                                                                                                                                          |   | **$**                              | **787,510**    |   |                        | $      | 1,238,357 |   |
| Referral                fees held in trust (note 4)                                                                                                                                               |   | ** **                         | **60,812**     |   |                        |   | 30,320 |   |
| Prepaid                expense                                                                                                                                                                    |   | ** **                         | **78,108**     |   |                        |   | 78,445 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Total                Current Assets**                                                                                                                                                           |   | ** **                         | **926,430**    |   |                        |   | 1,347,122 |   |
| **Equipment,                net** (note 5)                                                                                                                                                        |   | ** **                         | **94,080**     |   |                        |   | 98,571 |   |
| **Equipment                Under Capital Leases** (note 6)                                                                                                                                   |   | ** **                         | **4,850**      |   |                        |   | 5,198 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Total                Assets**                                                                                                                                                                   |   | **$**                              | **1,025,360**  |   |                        | $      | 1,450,891 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **LIABILITIES**                                                                                                                                                                                   |   |                               |           |   |                        |   |   |   |
| **Current                Liabilities**                                                                                                                                                            |   |                               |           |   |                        |   |   |   |
| Bank                indebtedness (note 7)                                                                                                                                                         |   | **$**                              | **103,869**    |   |                        | $      | 98,682 |   |
| Accounts                payable                                                                                                                                                                   |   | ** **                         | **485,258**    |   |                        |   | 407,346 |   |
| Accrued                liabilities                                                                                                                                                                |   | ** **                         | **87,278**     |   |                        |   | 213,547 |   |
| Advances                from related party (note 8)                                                                                                                                               |   | ** **                         | **168,199**    |   |                        |   | 204,868 |   |
| Trust                liability (note 4)                                                                                                                                                           |   | ** **                         | **60,812**     |   |                        |   | 30,320 |   |
| Obligation                under capital leases - current portion (note 9)                                                                                                                         |   | ** **                         | **1,791**      |   |                        |   | 1,674 |   |
| Stock-based                compensation accrual - current portion (note 10a)                                                                                                                      |   | ** **                         | **337,705**    |   |                        |   | 232,082 |   |
| Employee                stock-based compensation accrual (note 10b)                                                                                                                               |   | ** **                         | **995,956**    |   |                        |   | 813,850 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Total                Current Liabilities**                                                                                                                                                      |   | ** **                         | **2,240,868**  |   |                        |   | 2,002,369 |   |
| **Obligation                Under Capital Leases** (note 9)                                                                                                                                       |   | ** **                         | **3,533**      |   |                        |   | 3,915 |   |
| **Stock-based                Compensation Accrual** (note 10c)                                                                                                                               |   | ** **                         | **151,641**    |   |                        |   | 109,134 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Total                Liabilities**                                                                                                                                                              |   | ** **                         | **2,396,042**  |   |                        |   | 2,115,418 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Commitments                and Contingencies** (note 17)                                                                                                                                        |   |                               |           |   |                        |   |   |   |
| **STOCKHOLDERS'                DEFICIT**                                                                                                                                                          |   |                               |           |   |                        |   |   |   |
| **Capital                Stock**                                                                                                                                                                  |   |                               |           |   |                        |   |   |   |
| Preferred                stock, $0.0001 par value; 5,000,000 shares                 authorized, none issued                                                                                  |   | ** **                         | **-**          |   |                        |   | - |   |
| Capital                stock, $0.0001 par value; 100,000,000 shares                 authorized; 36,098,470 (2006: 36,088,470) issued and                 outstanding** **(note 11) |   | ** **                         | **3,610**      |   |                        |   | 3,609 |   |
| **Additional                Paid-in Capital**                                                                                                                                                     |   | ** **                         | **2,186,942**  |   |                        |   | 2,179,443 |   |
| **Additional                Paid-in Capital - Warrants** (note 12)                                                                                                                                |   | ** **                         | **732,605**    |   |                        |   | 732,605 |   |
| **Subscription                for Stock**                                                                                                                                                         |   | ** **                         | **-**          |   |                        |   | - |   |
| **Subscription                Receivable** (note 13)                                                                                                                                              |   | ** **                         | **(210,000**   | **)**  |                        |   | (242,301 | ) |
| **Treasury                Stock **(note 14)                                                                                                                                                  |   | ** **                         | **(25,234**    | **)**  |                        |   | (17,779 | ) |
| **Accumulated                Other Comprehensive (Loss) Income**                                                                                                                                  |   | ** **                         | **3,182**      |   |                        |   | (7,417 | ) |
| **Accumulated                Deficit**                                                                                                                                                            |   | ** **                         | **(4,061,787** | **)**  |                        |   | (3,312,687 | ) |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Total                Stockholders' Deficit**                                                                                                                                                    |   | ** **                         | **(1,370,682** | **)**  |                        |   | (664,527 | ) |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |
| **Total                Liabilities and Stockholders' Deficit**                                                                                                                                    |   | **$**                              | **1,025,360**  |   |                        | $      | 1,450,891 |   |
|                                                                                                                                                                                              |   |                               |           |   |                        |   |   |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES **

**(FORMERLY      MAGNADATA, INC.)**

|                                                                                                                |   | **(Restated,                Note 3)** |           |   | (Restated                Restatement, Note 3) |   |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------------|--------|-----------------------------------------------|--------|
|                                                                                                                |   | **2007**                              |           |   | 2006                                          |   |
|                                                                                                                |   |                                  |           |   |                                          |   |
| **Revenue**                                                                                                         |   | **$**                                 | **1,290,975**  |   |                                          | $      | 344,758 |   |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Expenses**                                                                                                        |   |                                  |           |   |                                          |   |   |   |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| Commission                and agent fees                                                                            |   | ** **                            | **1,189,234**  |   |                                          |   | 226,748 |   |
| Salaries                and benefits                                                                                |   | ** **                            | **310,117**    |   |                                          |   | 512,157 |   |
| General                and administrative expenses                                                                  |   | ** **                            | **203,135**    |   |                                          |   | 200,151 |   |
| Stock-based                compensation (note 17c(ii))                                                              |   | ** **                            | **105,623**    |   |                                          |   | - |   |
| Employee                stock-based compensation (note 10b)                                                         |   | ** **                            | **182,106**    |   |                                          |   | 371,743 |   |
| Stock-based                compensation (note 17a, 17b, and 17c(i))                                                 |   | ** **                            | **42,507**     |   |                                          |   | 21,919 |   |
| Interest                expense - beneficial conversion feature (note 15)                                           |   | ** **                            | **-**          |   |                                          |   | 108,840 |   |
| Occupancy                costs                                                                                      |   | ** **                            | **7,353**      |   |                                          |   | 19,320 |   |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Total                Operating Expenses**                                                                         |   | ** **                            | **2,040,075**  |   |                                          |   | 1,460,878 |   |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Loss                from Operations**                                                                             |   | ** **                            | **(749,100**   | **)**  |                                          |   | (1,116,120 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Other                (Expense)** **Income**                                                                  |   |                                  |           |   |                                          |   |   |   |
| Interest                and bank charges                                                                            |   | ** **                            | **-**          |   |                                          |   | (3,689 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Total                Other (Expense) Income**                                                                     |   | ** **                            | **-**          |   |                                          |   | (3,689 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Loss                Before Income Taxes**                                                                         |   | ** **                            | **(749,100**   | **)**  |                                          |   | (1,119,809 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| Provision                for income taxes (note 16)                                                                 |   | ** **                            | **-**          |   |                                          |   | - |   |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Net                Loss**                                                                                         |   | ** **                            | **(749,100**   | **)**  |                                          |   | (1,119,809 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Foreign                Currency Translation Adjustment**                                                          |   | ** **                            | **1,139**      |   |                                          |   | (4,650 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Total                Comprehensive Loss**                                                                         |   | **$**                                 | **(747,961**   | **)**  |                                          | $      | (1,124,459 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Net                Loss per Share - Basic and Diluted During the                Year**                            |   | **$**                                 | **(0.02**      | **)**  |                                          | $      | (0.03 | ) |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |
| **Weighted                Average Number of Shares Outstanding - Basic and Diluted During the                Year** |   | ** **                            | **36,098,248** |   |                                          |   | 34,019,056 |   |
|                                                                                                                |   |                                  |           |   |                                          |   |   |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

|                                                                                                                    |   | **(Restated,                Note 3)** |          |   | (Restated                Restatement, Note 3) |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------------|--------|-----------------------------------------------|--------|
|                                                                                                                    |   | **2007**                              |          |   | 2006                                          |   |
| **Cash                Flows from Operating Activities**                                                                 |   |                                  |          |   |                                          |   |
| Net                loss                                                                                                 |   | $                                     | **(749,100**  | )      |                                          | $      | (1,119,809 | ) |
| Adjustments                to reconcile net loss to net cash (used in) operating                activities:             |   |                                  |          |   |                                          |   |   |   |
| Depreciation                                                                                                            |   | ** **                            | **4,839**     |   |                                          |   | - |   |
| Loss                on disposal of assets                                                                               |   | ** **                            | **-**         |   |                                          |   | - |   |
|                    Interest expense - beneficial conversion feature                                      |   | ** **                            | **-**         |   |                                          |   | 108,840 |   |
|                    Stock issued for services                                                             |   | ** **                            | **-**         |   |                                          |   | 441,000 |   |
|                   Stock issued for general and administrative expenses                                        |   | ** **                            | **7,500**     |   |                                          |   | - |   |
|                    Employee stock-based compensation                                                     |   | ** **                            | **182,106**   |   |                                          |   | 371,743 |   |
|             Stock-based                compensation accrual |   | ** **                            | **148,130**   |   |                                          |   | 21,919 |   |
| Net                changes in non-working capital:                                                                      |   |                                  |          |   |                                          |   |   |   |
|                     Referral fees held in trust                                                     |   | ** **                            | **(30,492**   | **)**  |                                          |   | - |   |
| Prepaid                expense                                                                                          |   | ** **                            | **337**       |   |                                          |   | (89,965 | ) |
| Accounts                payable and accrued liabilities                                                                 |   | ** **                            | **(48,357**   | **)**  |                                          |   | 196,490 |   |
| Trust                liability                                                                                          |   | ** **                            | **30,492**    |   |                                          |   | - |   |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Net                Cash (Used in) Operating Activities**                                                              |   | ** **                            | **(454,545**  | **)**  |                                          |   | (69,782 | ) |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Cash                Flows from Investing Activities**                                                                 |   |                                  | -             |   |                                          |   | - |   |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Net                Cash Used in Investing Activities**                                                                |   | ** **                            | **-**         |   |                                          |   | - |   |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Cash                Flows from Financing Activities**                                                                 |   |                                  |          |   |                                          |   |   |   |
| Deferred                offering costs                                                                                  |   | ** **                            | **-**         |   |                                          |   | (30 | ) |
| Proceeds                from notes payable                                                                              |   | ** **                            | **-**         |   |                                          |   | 23,000 |   |
| Obligation                under capital leases                                                                          |   | ** **                            | **(265**      | **)**  |                                          |   | - |   |
| Repayment                of advances from related party                                                                 |   | ** **                            | **(36,669**   | **)**  |                                          |   | (7,118 | ) |
| Issuance                of common stock for cash                                                                        |   | ** **                            | **32,301**    |   |                                          |   | - |   |
| Treasury                stock                                                                                           |   | ** **                            | **(7,455**    | **)**  |                                          |   | - |   |
| Increase                in bank indebtedness                                                                            |   | ** **                            | **5,187**     |   |                                          |   | (332 | ) |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Net                Cash Provided by Financing Activities**                                                            |   | ** **                            | **(6,901**    | **)**  |                                          |   | 15,520 |   |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Net                (Decrease) Increase in Cash and Cash Equivalents**                                                 |   | ** **                            | **(461,446**  | **)**  |                                          |   | (54,262 | ) |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Foreign                Exchange on Balances**                                                                         |   | ** **                            | **10,599**    |   |                                          |   | (6,881 | ) |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Cash                and Cash Equivalents - Beginning of Year**                                                        |   | ** **                            | **1,238,357** |   |                                          |   | 169,093 |   |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Cash                and Cash Equivalents - End of Year**                                                              |   | **$**                                 | **787,510**   |   |                                          | $      | 107,950 |   |
|                                                                                                                    |   |                                  |          |   |                                          |   |   |   |
| **Supplemental                Cash Flow Information**                                                                   |   |                                  |          |   |                                          |   |   |   |
| Interest                paid                                                                                            |   | **$**                                 | **1,577**     |   |                                          | $      | 2,560 |   |
|                            Income taxes paid                     |   | **$**                                 | **-**         |   |                                          | $      | - |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**1.**
**Nature of Business and Going Concern**

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**2.**
**Summary        of Significant Accounting Policies**

a) 

|   | Furniture                and equipment                | 20%                declining |
|--------|-------------------------------------------------------|------------------------------|
|   | Computer                equipment                     | 30%                declining |
|   | Computer                equipment under capital lease | 30%                declining |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**2.    **Summary      of Significant Accounting Policies**      (cont'd)**

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**2.      **Summary      of Significant Accounting Policies** (cont'd)**

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**2.      **Summary      of Significant Accounting Policies**      (cont'd)**

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**2.      **Summary        of Significant Accounting Policies**        (cont'd)**

|   |   |   |
|--------|--------|--------|

* Settlement*

**3.           Restatement      of Previously Issued Condensed Consolidated Interim Financial      Statements**

|   | a)   It                was determined that the Company inadvertently excluded shares accrual                for                participants in the private placement which closed on June 9, 2006                (note                11) |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)   It                was determined that the Company inadvertently deferred offering                costs. |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | c)   It                was determined that the Company inadvertently excluded warrant accruals                earned by agents. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d)   It                was determined that the company inadvertently excluded revenue earned                and                received. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e)    Funds                received by the company were inadvertently recorded as advances from                related party, when funds actually related to capital stock and additional                paid-in-capital. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f)    It                was determined that the company inadvertently over accrued commissions                expense at period end. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g)    It                was determined that the company inadvertently over accrued for accounts                payable at period end. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h)    It                was determined that the initial filing contained a typographical                error. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | i)   It                was determined that the company inadvertently excluded employee                stock-based compensation accrual. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j)   It                was determined that the company inadvertently excluded the non-cash                interest expense related to the beneficial conversion feature in                the                $100,000 and $150,000 notes                payable. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**3.**
**    Restatement      of Previously Issued Condensed Consolidated Interim Financial Statements      (**

|                                                                                                                                                                 |   | **As                Previously Reported** |       |   | **Change** |   |       | **Restated** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|------------|--------|------------|--------------|--------|
| **Condensed                Consolidated Interim Statement of Operations and Comprehensive Loss                for                the 3 months ended March 31, 2007** |   |                                      |       |   |       |   |       |         |   |
| Revenue                (d)                                                                                                                                           |   | $                                         | 1,189,252  |   |       | $      | 101,723    |         |   | $ | 1,290,975 |   |
| Commission                and agent fees (f)                                                                                                                         |   | $                                         | 1,209,691  |   |       | $      | (20,457    | )            |   | $ | 1,189,234 |   |
| Stock                based compensation (c)                                                                                                                          |   | $                                         | 358,139    |   |       | $      | (315,632   | )            |   | $ | 42,507 |   |
| General                and administrative expenses (g)                                                                                                               |   | $                                         | 238,298    |   |       | $      | (35,163    | )            |   | $ | 203,135 |   |
| Employee                stock-based compensation (i)                                                                                                                 |   | $                                         | 695,181    |   |       | $      | (513,075   | )            |   | $ | 182,106 |   |
| Net                loss                                                                                                                                              |   | $                                         | (1,735,150 | )      |       | $      | (986,050   | )            |   | $ | (749,100 | ) |
|                                                                                                                                                                 |   |                                      |       |   |       |   |       |         |   |   |   |   |
| **Condensed                Consolidated Interim Balance Sheet – March 31                2007**                                                                 |   |                                      |       |   |       |   |       |         |   |   |   |   |
| Cash                and cash equivalents (d)                                                                                                                         |   |                                      | 684,174    |   |       |   | 103,336    |         |   |   | 787,510 |   |
| Accounts                payable (g)                                                                                                                                  |   |                                      | 520,984    |   |       |   | (35,726    | )            |   |   | 485,258 |   |
| Accrued                liabilities (f)                                                                                                                               |   |                                      | 104,839    |   |       |   | (17,561    | )            |   |   | 87,278 |   |
| Employee                stock-based compensation accrual (i)                                                                                                         |   | $                                         | 1,509,031  |   |       | $      | (513,075   | )            |   | $ | 995,956 |   |
| Stock-based                compensation accrual (c)                                                                                                                  |   | $                                         | 467,273    |   |       | $      | (315,632   | )            |   | $ | 151,641 |   |
| Accumulated                deficit                                                                                                                                   |   | $                                         | (5,046,697 | )      |       | $      | (984,910   | )            |   | $ | (4,061,787 | ) |
|                                                                                                                                                                 |   |                                      |       |   |       |   |       |         |   |   |   |   |
| **Condensed                Consolidated Interim Statement of Operations and Comprehensive Loss                for                the 3 months ended March 31, 2006** |   |                                      |       |   |       |   |       |         |   |   |   |   |
| Stock                based compensation (c)                                                                                                                          |   | $                                         | -          |   |       | $      | 21,919     |         |   | $ | 21,919 |   |
| Employee                stock-based compensation (i)                                                                                                                 |   | $                                         | -          |   |       | $      | 371,743    |         |   | $ | 371,743 |   |
| Interest                expense – beneficial conversion feature (j)                                                                                            |   | $                                         | -          |   |       | $      | 108,840    |         |   | $ | 108,840 |   |
| Foreign                currency translation adjustment                                                                                                               |   | $                                         | 7,904      |   |       | $      | (3,254     | )            |   | $ | 4,650 |   |
| Net                loss                                                                                                                                              |   | $                                         | (617,307   | )      |       | $      | (502,502   | )            |   | $ | (1,119,809 | ) |
|                                                                                                                                                                 |   |                                      |       |   |       |   |       |         |   |   |   |   |
| **Condensed                Consolidated Interim Balance Sheet – March 31                2006**                                                                 |   |                                      |       |   |       |   |       |         |   |   |   |   |
| Deferred                offering costs (b)                                                                                                                           |   | $                                         | -          |   |       | $      | 8,568      |         |   | $ | 8,568 |   |
| Bank                indebtedness (h)                                                                                                                                 |   | $                                         | 207,108    |   |       | $      | 112,530    |         |   | $ | 94,578 |   |
| Accounts                payable and accrued liabilities (b)                                                                                                          |   | $                                         | 300,331    |   |       | $      | (9,168     | )            |   | $ | 291,163 |   |
| Advances                from related party (e)                                                                                                                       |   | $                                         | 341,407    |   |       | $      | (15,660    | )            |   | $ | 325,747 |   |
| Additional                paid in capital (j)                                                                                                                        |   | $                                         | 1,299,291  |   |       | $      | 137,577    |         |   | $ | 1,436,868 |   |
| Employee                stock-based compensation accrual (i)                                                                                                         |   | $                                         | -          |   |       | $      | 997,654    |         |   | $ | 997,654 |   |
| Stock-based                compensation accrual (c)                                                                                                                  |   | $                                         | -          |   |       | $      | 21,919     |         |   | $ | 21,919 |   |
| Accumulated                other comprehensive income                                                                                                                |   | $                                         | 3,224      |   |       | $      | 1,426      |         |   | $ | 4,650 |   |
| Accumulated                deficit                                                                                                                                   |   | $                                         | (1,277,716 | )      |       | $      | (1,146,103 | )            |   | $ | (2,423,819 | ) |
|                                                                                                                                                                 |   |                                      |       |   |       |   |       |         |   |   |   |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**4.**
**Trust        Liability**

**5.    **Equipment,        net****

|                                   |   |       |        |   |             |       |       | **Net                Book** |   |       | Net                Book |   |
|----------------------------------------|--------|------------|-------------|--------|------------------|------------|------------|-----------------------------|--------|------------|-------------------------|--------|
|                                   |   |       |        |   | **Accumulated**  |       |       | **Value**                   |   |       | Value                   |   |
|                                   |   | **Cost**   |        |   | **Depreciation** |       |       | **2007**                    |   |       | 2006                    |   |
|                                   |   |       |        |   |             |       |       |                        |   |       |                    |   |
| Furniture                and equipment |   | **$**      | **106,829** |   |             | **$**      | **26,669** |                        |   | **$**      | **80,160**              |   |   | $ | 83,650 |   |
| Computer                equipment      |   | ** ** | **19,178**  |   |             | ** ** | **5,258**  |                        |   | ** ** | **13,920**              |   |   |   | 14,921 |   |
|                                   |   |       |        |   |             |       |       |                        |   |       |                    |   |   |   |   |   |
|                                   |   | **$**      | **126,007** |   |             | **$**      | **31,927** |                        |   | **$**      | **94,080**              |   |   | $ | 98,571 |   |
|                                   |   |       |        |   |             |       |       |                        |   |       |                    |   |   |   |   |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**6.    **Equipment        Under Capital Leases****

|                                          |   | **2007** |       |   | 2006   |   |
|-----------------------------------------------|--------|----------|------------|--------|--------|--------|
| Computer                equipment             |   | **$**    | **6,168**  |   |   | $      | 6,115 |   |
| Less:                accumulated depreciation |   |     | **(1,318** | )      |   |   | (917 | ) |
|                                          |   |     |       |   |   |   |   |   |
|                                          |   | **$**    | **4,850**  |   |   | $      | 5,198 |   |

**7.    **Bank      Indebtedness****

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**8.**
**Advances        from Related Party**

**9.    **Obligation      Under Capital Leases****

|                                        |   |   |      |
|---------------------------------------------|--------|--------|-----------|
| 2007                                        |   | $      | **1,378** |   |
| 2008                                        |   |   | **2,230** |   |
| 2009                                        |   |   | **1,716** |   |
|                                        |   |   |      |   |
| Total                minimum lease payments |   |   | **5,324** |   |
|                                        |   |   |      |   |
| Less:                current portion        |   |   | (1,791    | ) |
|                                        |   |   |      |   |
| Long-term                portion            |   | $      | **3,533** |   |
|                                        |   |   |      |   |

**10.    **Stock-based      Compensation Accrual****

|   | a) | As                of March 31, 2007, the Company accrued a stock-based compensation                expense                for 422,131 common shares at a price of $0.80 per share for a total                of                $337,705 to the parties referred to in note                17c(ii). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | As                of March 31, 2007, the Company accrued a stock-based compensation                expense                of $995,956 under its Equity Compensation Plan referred to in note                11.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | As                of March 31, 2007, the Company accrued a stock-based compensation                expense                for 189,551 common shares at a price of $0.80 per share for a total                of                $151,641 to the parties referred to in note 17a, 17b, and                17c(i). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

| **11.**  | **Capital                Stock** |
|---------------|----------------------------------|

|   | i) | the                purchaser received a warrant (1 warrant = 1 share) to further purchase                up                to the total number shares of common stock purchased through the private                placement exercisable at a rate of 20% each year following the anniversary                date of the private placement closure. The warrants are exercisable                at a                price 30% below the 30 day fair market price preceding the date such                warrants are exercised. Warrants expire if not exercised within 30                days of                such anniversary date; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | further,                pursuant to the execution of a service level agreement, on the anniversary                date of the private placement closure, the Company has agreed to                issue a                number of shares of common stock equal to 25% of the number of common                shares purchased in the private placement for ten consecutive anniversary                dates. The receipt of such shares is dependent on the execution and                maintenance in good standing of the terms of a service level agreement                for                each of the ten years. The service level agreement included the provisions                of marketing, servicing and promotional                services. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**11.**
**Capital        Stock (cont'd)**

**12.**
**Additional        Paid-in Capital - Warrants**

**13.  **Subscription        Receivable****

**14.**
**Treasury        Stock**

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**15.     **Notes      Payable****

|   | a) | the                subscription for shares of Company's common stock (“Shares”) by such                executive officers of RE/MAX as RE/MAX shall designate in connection                with                the proposed private placement of up to 6,000,000 Shares for gross                proceeds of up to USD $6,000,000 contemplated to close in early Spring                2006; or, |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | the                deemed failure to negotiate one or more definitive agreements between                RE/MAX and the Company establishing a mortgage origination and referral                solution for RE/MAX, the acceptability of such definitive agreement(s),                or                the failure to negotiate such definitive agreement(s), to be determined                by                RE/MAX in its sole discretion. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**16.**
**Income      Taxes**

|                                                               | **(Restated)****Three                Months** |       | (Restated                Restatement)Three                Months |   |
|--------------------------------------------------------------------|-----------------------------------------------|------------|------------------------------------------------------------------|--------|
|                                                               | **Ended**                                     |       | Ended                                                            |   |
|                                                               | **March                31,**                  |       | March                31,                                         |   |
|                                                               | **2007**                                      |       | 2006                                                             |   |
|     Deferred                Income Tax Assets: |                                          |       |                                                             |   |
| Operating                loss carry forward                        |                                          | **$**      | **876,005**                                                      |   |   | $ | 477,444 |   |
| Valuation                allowance                                 |                                          | ** ** | **(876,005**                                                     | **)**  |   |   | (477,444 | ) |
|                                                               |                                          |       |                                                             |   |   |   |   |   |
| Total                deferred tax effect                           |                                          | $          | -                                                                |   |   | $ | - |   |

|                                                   |   | **(Restated)****March                31,** |         |   | (Restated                Restatement)March                31, |   |
|--------------------------------------------------------|--------|--------------------------------------------|--------------|--------|---------------------------------------------------------------|--------|
|                                                   |   | **2007**                                   |         |   | 2006                                                          |   |
|                                                   |   |                                       |         |   |                                                          |   |
| Deferred                Tax Provision:                 |   |                                       |         |   |                                                          |   |
|                                                   |   |                                       |         |   |                                                          |   |
| Benefit                at Federal statutory rate (34%) |   | **$**                                      | **178,326**  |   |                                                          | $      | 209,884 |   |
| Change                in Valuation allowance           |   | ** **                                 | **(178,326** | **)**  |                                                          |   | (209,884 | ) |
|                                                   |   |                                       |         |   |                                                          |   |   |   |
| Provision                for income taxes              |   | $                                          | -            |   |                                                          | $      | - |   |
|                                                   |   |                                       |         |   |                                                          |   |   |   |
| Current                Tax Provision                   |   |                                       |         |   |                                                          |   |   |   |
| Federal                and State income tax            |   | $                                          | -            |   |                                                          | $      | - |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**17.     **Commitments      and Contingencies****

|   | “Average                Volume”: | defined                as the average best three out of five years in funded mortgage origination                volume |
|--------|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**17.  **Commitments      and Contingencies (cont'd)****

|   | Number                of Warrants: | $8,257                worth of warrants divided by the Strike Price, per CDN $10 ($8.58                USD)                million in Average Volume, adjusted on a pro rata basis, no minimum                or                maximum thresholds.The warrants are convertible in common shares                on a 1:1                basis. |
|--------|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings                Period: | Series                I warrants are earned in the first 5 years following the Effective                Date; |
|--------|---------------------------------|---------------------------------------------------------------------------------------------------------------|

|   | Additional                Vestment: | all                SERIES I warrants are fully vested on the 5th anniversary of the                Effective                Date |
|--------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

|   | Determination                Date:  | 5                year anniversary of Effective                Date  |
|--------|------------------------------------------|--------------------------------------------------------------------------|

|   | “Annual                Volume”: | defined                as the total mortgage origination volume executed per 12 month period                following the Effective Date and subsequent 12 month periods following                the                anniversary dates of the Effective                Date |
|--------|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Number                of Warrants: | $1,651                worth of warrants divided by the Strike Price per CDN $10 ($8.58                USD)                million in Annual Volume, adjusted on a pro rata basis, no minimum                or                maximum thresholds. The warrants are convertible in common shares                on a 1:1                basis. |
|--------|------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings                Period: | Series                II warrants are earned in the first 5 years following the Effective                Date |
|--------|---------------------------------|---------------------------------------------------------------------------------------------------------------|

|   | Additional                Vestment: | All                SERIES II Warrants fully vest 3 years following the Determination                Date |
|--------|-------------------------------------|----------------------------------------------------------------------------------------------------------|

|   | Determination                Date: | The                Annual Volume is determined on the fifth year anniversary of the                Effective                Date |
|--------|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

|   | Annual                Volume: | defined                as the total funded mortgage origination volume from Maxwell lead                referral                executed per 12 month period following the Effective Date and subsequent                12 month periods following the anniversary dates of the Effective                Date |
|--------|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Number                of Warrants: | $3,000                worth of warrants divided by the Strike Price per CDN $10 ($8.58                USD) million in Annual Volume, adjusted on a pro rata basis, no                minimum or maximum thresholds.The warrants are convertible in common                shares on a 1:1 basis. |
|--------|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings                Period: | Series                III warrants are earned in the first 5 years following the Effective                Date |
|--------|---------------------------------|----------------------------------------------------------------------------------------------------------------|

|   | Additional                Vestment:  | SERIES                III warrants are fully vested on the fifth anniversary of the Effective                Date  |
|--------|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**17.    **Commitments      and Contingencies (cont'd)****

|   | i) | Pursuant                to a ten year licensing agreement dated January 30, 2006 and amended                May                25, 2006, and pursuant to the execution of a one year renewable service                level agreement by the RE/MAX Franchisee, the Company is committed                to                issuing to RE/MAX at no cost, warrants for common stock of the Company                based on referrals leading to funded mortgage origination volume.                The                RE/MAX Warrant-Based Compensation Program issues warrants (“SERIES IV                Warrants”) as follows based on current                formulae: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Annual                Volume: | defined                as the total funded mortgage origination volume from RE/MAX lead                referral                executed per 12 month period following the Effective Date and subsequent                12 month periods following the anniversary dates of the Effective                Date |
|--------|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Number                of Warrants: | $3,000                worth of warrants divided by the Strike Price per $10 million dollars                CDN                in Annual Volume, adjusted on a pro rata basis, no minimum or maximum                thresholds. The warrants are convertible in common shares on a 1:1                basis. |
|--------|------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings                Period: | Series                IV warrants are earned in the first 3 years following the Effective                Date |
|--------|---------------------------------|---------------------------------------------------------------------------------------------------------------|

|   | Additional                Vestment: | SERIES                IV warrants are fully vested on the 5th anniversary of the Effective                Date |
|--------|-------------------------------------|----------------------------------------------------------------------------------------------------------------|

|   | ii) | Pursuant                to the ten year licensing agreement dated January 30, 2006 and amended                May                25, 2006, the Company has committed to issuing, at no cost, an aggregate                of 528,118 common shares of the Company on each of the 10 year anniversary                dates of the licensing agreement to those RE/MAX executives and                franchisees that participated in the company's private placement                which                closed on June 9, 2006. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2007       |   | $ | 5,040 |   |
|------------|--------|---|-------|--------|
| 2008       |   | $ | 7,560 |   |
| 2009       |   | $ | 7,560 |   |
| 2010       |   | $ | 8,568 |   |   |
| 2011       |   | $ | 9,072 |   |   |
| Thereafter |   | $ | 3,024 |   |   |

----

**MORTGAGEBROKERS.COM      HOLDINGS, INC. AND SUBSIDIARIES**

**(FORMERLY      MAGNADATA, INC.)**

**17.    **Commitments      and Contingencies (cont'd)****

|   | e) | On                  March 27, 2007, the Company entered into a lease to rent office                  space in                  Concord, Ontario, Canada for maintaining the Company's Canadian                  head                  office. The agreement is effective commencing April 1, 2007 for                  a two year                  term. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                Company has the option to renew this lease, for amounts to be determined,                for two additional one year terms. The Company also has the option                to                purchase the office space, by May 31, 2007, for                $986,815. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Future                minimum lease payments (excluding utilities, taxes and common area                maintenance expenses) are as                follows: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2007   |   | $      | 72,269 |   |
|--------|--------|--------|--------|--------|
| 2008   |   | $      | 96,359 |   |
| 2009   |   | $      | 24,090 |   |
|   |   |   |   |   |

**18.           Comparative      Figures**

----

**Item      2. Management's Discussion and      Analysis of Financial Conditions and      Results** **of      Operations**

**CAUTIONARY      NOTE REGARDING FORWARD-LOOKING STATEMENTS**

*This      Report contains certain financial information and statements regarding our      operations and financial prospects of a forward-looking nature. Although these      statements accurately reflect management's current understanding and beliefs,      we      caution you that certain important factors may affect our actual results and      could cause such results to differ materially from any forward-looking      statements which may be deemed to be made in this Prospectus. For this purpose,      any statements contained in this Prospectus which are not statements of      historical fact may be deemed to be forward-looking statements. Without limiting      the generality of the foregoing, words such as “may”, “intend”, “expect”,“believe”, “anticipate”, “could”, “estimate”, “plan”, or “continue” or the      negative variations of these words or comparable terminology are intended to      identify forward-looking statements. There can be no assurance of any kind      that      such forward-looking information and statements in any way reflect our actual      future operations and/or financial results, and any of such information and      statements should not be relied upon either in whole or in part in any decision      to invest in the shares. Many of the factors, which could cause actual results      to differ from forward looking statements, are outside our control. These      factors include, but are not limited to, the factors discussed above under“Risk      Factors.”*

*Reason      for Restatement*

| 1.   | In                addition to earned commission fees, the Company provides an opportunity                for our Canadian subsidiary's national agency sales force to earn                stock                warrants in the Company based on annual sales volumes over a period                of                time (“stock-based compensation”). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Pursuant                to a long term licensing agreements the Company is committed to issuing                to                real estate strategic alliances in Canada, at no cost, warrants for                common                stock of the Company based on referrals leading to funded mortgage                origination volume. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Organization*

*Nature      of Business and Planned Operations*

----

*Basis      for Current Operational Activity*

| 1)   | Recruited                  mortgage sales agents execute an exclusive agreement with a subsidiary                  of                  MortgageBrokers.com as a third party sales subcontractor.  The                  mortgage agents agree to operate under the terms of the sales agreement                  and the mortgage broker licensure and brand of the Company and                  allow the                  Company to take typically 15% of the commission fees payable to                  the                  mortgage agent from a mortgage lender in exchange for payroll,                  revenue                  management (volume pooling), licensure, compliance, marketing services                  and                  stock warrants in MortgageBrokers.com Holdings,                  Inc. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2)   | No                money is paid by the Company for purchase of any asset of the mortgage                agent or their business including the agent's book of                business.  The company does not take an equity ownership                position in the independent business of the individual mortgage agent                or                mortgage agent team. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | Generally,                the size of potential warrant issues to a contracted sales agent                or sales                agent team is modeled upon a discounted cash flow valuation of the                margin                contribution to the Company's bottom line represented by the mortgage                agent's mortgage average annual origination sales volume over a forward                period and taking into account foreign exchange and the Company's                cost                structure. An agent or agent team are eligible to receive multiple                warrant                issues based on performance and pursuant to the execution of a warrant                agreement. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4)   | Presently,                under existing formulae and by way of example to illustrate the warrant                model for mortgage agents, a mortgage agent team responsible for                originating $100 million in average annual mortgage volume over a                five                year period would be eligible to                receive: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)       | USD                $83,000 dollars worth of cashless (fully earned) stock warrants (“Series I                Mortgage Agent Warrants”), the warrant pricing being the greater of the 20                day average closing price preceding the warrant series earnings period                or                USD $1.00.  If the mortgage agent team's five year average                annual mortgage volume is less or more than the afore-mentioned $100                million, the number of Series I Mortgage Agent Warrants granted to                the                agent or agent team is adjusted proportionately. The mortgage agents                are                not eligible to earn Series I Mortgage Agent Warrants until a minimum                5                year term sales period is completed in full, following execution                of an                exclusive agency sales contract with the Company.  It is                expected that Series I Mortgage Agent Warrants will be granted within                6                months following the five year anniversary date of the agent's executed                license agreement.  The Series I Mortgage Agent Warrants have no                additional vestment period associated with them; and, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b)       | Additionally,                the mortgage agent or agent team would be eligible to earn USD $16,513                dollars worth of cashless (fully earned) stock warrants each year,                the                warrant pricing being the greater of the 20 day average closing price                preceding the warrant series earnings period or USD $1.00, subject                to the                following vestment periods:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Ø   | Stock                warrants earned each year in the first five year period following                execution of the agent's license agreement with the Company, have                a three                year vestment period following the five year initial earnings period                (Series II Mortgage Agent Warrants).  In summary, Series II Mortgage                Agent Warrants earned in the first five years based on the agent's                annual                origination sales volume, are granted and exercisable following the                eight                year anniversary date of the agent's executed license agreement.                If the                mortgage agent team's annual mortgage origination sales volume is                less or                more than the afore-mentioned $100 million, the number of Series                II                Mortgage Agent Warrants granted to the agent or agent team is adjusted                proportionately.                                                                                                                                                                                                                                                                                                                   |
| Ø   | Currently,                stock warrants earned in year's 6 through 8 following execution of                the                agent's license agreement with the Company, are vested till the tenth                year                anniversary of the agent's executed license agreement (“Series III                Mortgage Agent Warrants”). In summary, Series III Mortgage Agent Warrants                earned in the year's six through eight based on the agent's annual                origination sales volume, are granted and exercisable following the                tenth                year anniversary date of the agent's executed license agreement.                If the                mortgage agent team's annual mortgage origination sales volume is                less or                more than the afore-mentioned $100 million, the number of Series                III                Mortgage Agent Warrants granted to the agent or agent team is adjusted                proportionately.                                                                                                                                                                                                                                                                                                         |
| Ø   | Continued                warrant series issues earned for subsequent three year periods following                the Series III Mortgage Agent Warrant earnings period are similarly                structured with two year vestments following the three year earning                period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Ø   | Warrant                pricing for Series II and all following issues of Mortgage Agent                Warrants                is established as the twenty (`20') day average closing price of                the stock                preceding the commencement of the Series earning period or at the                minimum                value of USD $1.00, which ever is greater. For example, for Series                II                Mortgage Agent Warrants, the price is established as the greater                of the                twenty (`20') day average closing price preceding the fifth anniversary                date of the agents license agreement or USD                $1.00.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

| 5)   | The                mortgage agents are not eligible to earn Mortgage Agent Warrants                for any                incomplete earnings period. It is expected that all warrants will                be                granted within 6 months following the relative warrant series earning                period vestment period. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Annual                Volume:        | defined                as the total funded mortgage origination volume from RE/MAX lead                referral                executed per 12 month period following the Effective Date and subsequent                12 month periods following the anniversary dates of the Effective                Date                      |
|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number                of Warrants:   | USD                $3,000 US worth of warrants divided by the Strike Price per CDN $10                million dollars in Annual Volume, adjusted on a pro rata basis, no                minimum                or maximum thresholds. The warrants are convertible in common shares                on a                1:1 basis. |
| Earnings                Period:      | Series                IV warrants are earned in the first 3 years following the Effective                Date                                                                                                                                                                                                                     |
| Additional                Vestment:  | SERIES                IV warrants are fully vested on the 5th anniversary of the Effective                Date                                                                                                                                                                                                                    |

| Annual                Volume:        | defined                as the total funded mortgage origination volume from Maxwell lead                referral                executed per 12 month period following the Effective Date and subsequent                12 month periods following the anniversary dates of the Effective                Date |
|-------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number                of Warrants:   | USD                $3,000 worth of warrants divided by the Strike Price per CDN $10                million                in Annual Volume, adjusted on a pro rata basis, no minimum or maximum                thresholds. The warrants are convertible in common shares on a 1:1                basis.       |
| Earnings                Period:      | Series                III warrants are earned in the first 5 years following the Effective                Date                                                                                                                                                                                                |
| Additional                Vestment:  | the                warrants are fully vested on the fifth anniversary of the Effective                Date.                                                                                                                                                                                                   |

*Current      Activities*

*Marketing      Activity:*

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| 1)   | In                January 16, 2007 Dutton Associates (“Dutton”) initiated coverage of                MortgageBrokers.com with a Strong Speculative Buy rating and a $1.50                price                target. The 16-page update report by Dutton senior analyst Richard                W.                West, CFA, was available at www.jmdutton.com as well as from First                Call,                Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.                In its report, Mr. West described MortgageBrokers.com's business                model as,                “.. the consolidation of the small and medium sized enterprise (SME)                mortgage brokerages into a scalable operating national network of                branch                retail offices that can better compete in the mortgage industry under                one                recognizable brand while eliminating long-standing industry issues                of                agent retention, equity ownership, and exit strategy.  To                attract mortgage originators, MortgageBrokers.com initiated its Broker                Channel Recruitment Program in August 2005. Through this program,                MortgageBrokers.com will be offering MortgageBrokers.com equity ownership                to independent SME mortgage brokers by giving stock warrants dependent                upon the volume or origination and time with MortgageBrokers.com.                MorgageBrokers.com has executed an impressive fast start out of the                gate.                The fast rate of ramp-up in revenue should be increasing as the new                mortgage originators from the recent partnerships begin working through                the MortgageBrokers.com system. The management of MortgageBrokers.com                is                an experienced team of senior managers with many years of experience                in                the mortgage business. MortgageBrokers.com has exhibited the attributes                of                an attractive investment vehicle for capital                appreciation.” |
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|   | Dutton                    Associates is one of the largest independent investment research                    firms in                    the U.S.  Its 31 senior analysts are primarily CFAs, and have                    expertise in many industries.  Dutton provides continuing                    analyst coverage of over 140 enrolled companies, and its research,                    estimates, and ratings are carried in all the major databases                    serving                    institutions and online investors.  The Company believes this                    report from Dutton will eventually help MortgageBrokers.com with                    obtaining                    intuitional investors and higher market awareness.  The company                    also expects to attend select National and regional financial                    market                    expositions later this year to increase the market's awareness                    of the                    Company's performance and                    stock. |
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| 2)   | The                Company was nominated for 'Best Newcomer' (National Brokerage) at                the 2007                CMP Canadian Mortgage Awards. The Best Newcomer Award recognizes                an                outstanding newcomer, encompassing both national networks and independent                operations, for their professionalism and excellence. MortgageBrokers.com                has also been nominated for 'Best Internet Presence' at the event.                The                Best Internet Presence award recognizes an organization's ability                to                portray its value proposition to the many stakeholders                involved. |
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| 3)   | The                Company had a booth and strong showing at the 5th                annual                Mortgage Brokers Association of British Columbia Annual General Conference                in February attended by in excess of 1500 industry insiders such                as banks,                lenders, mortgage brokerages and technology firms.                                                                                                                                                                                                                                                                                                                                         |
| 4)   | The                Company had a strong presence and booth at the Ottawa regional Home                Show                in April, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| 5)   | Our                Managing Partner Team in Ottawa, Team Elite, currently has television                and                radio advertising spots running on the CTV network and local                radio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

*Business      Development Activity:*

| 1)   | RE/MAX                  and MortgageBrokers.com jointly announced the selection of Manulife                  Financial as the new administrator of the Retirement Savings Program                  for                  RE/MAX Real Estate Agents.  Under the terms of the                  MortgageBrokers.com and RE/MAX strategic alliance agreement, a                  portion of                  revenue generated on a funded mortgage referral will be contributed                  towards the Retirement Savings Program for the referring real estate                  agent. Manulife Financial will support the continuing administration                  of                  this Program - the first of its scope in the Canadian real estate                  industry.  A corporate site was developed within Manulife                  Financial’s website to provide additional information for RE/MAX sales                  associates about the program and to allow the real estate agents                  to track                  their retirement fund growth. |
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| 2)   | MortgageBrokers.com                  announced in April, 2007, that the Company has begun a co-location                  initiative with RE/MAX Realtron and RE/MAX Hallmark, two of Canada's                  largest RE/MAX franchise offices that have an estimated CAD $3.2                  billion                  in combined sales.  RE/MAX Hallmark and RE/MAX Realtron boast in                  excess of 1,000 real estate agents in 14 retail locations throughout                  Ontario, the most populous province in                  Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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| 3)   | The                  Company launched it's service at RE/MAX Unique Inc. (“RE/MAX Unique”) in                  Toronto, which operates 2 retail franchise office locations, having                  in                  excess of 45 sales associates in the centre of Toronto.  RE/MAX                  Unique has two offices in Metropolitan Toronto and is owned and                  operated                  by John Meehan.  John Meehan is a well-respected and experienced                  real estate broker and the former president of the Toronto real                  estate                  board.  RE/MAX Unique's areas serviced include Metropolitan                  Toronto, Allenby, Forest Hill, Rosedale and surrounding                  areas.  The RE/MAX Unique office is currently serviced by three                  MortgageBroker.com experienced sales agents.                                                                            |
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| 4)   | MortgageBrokers.com                  signed an exclusive licensing agreement with Seaway Mortgage Partners,                  Inc. (“Seaway”)  This company is headquartered in Kingston,                  Ontario, and was founded by Stephen Marshall, a former loans officer                  from                  the Bank of Montreal.  Seaway serves the seaway region                  consisting of Kingston, Belleville, Peterborough, and other urban                  areas in                  eastern Ontario.  Seaway has already begun participation in the                  RE/MAX co-location program due to its recent affiliation with the                  Company                  through RE/MAX Realty Concepts Corp. which has an estimated 21.8%                  market                  share in the area.  Seaway currently has offices in two RE/MAX                  locations and plans further expansion in the near                  future. |
| 5)   | MortgageBrokers.com                  has also executed a service agreement with RE/MAX Niagara Realty                  Limited                  (“RE/MAX Niagara”) in Niagara Falls, Ontario.  The RE/MAX                  Niagara franchise has 1 office and in excess of 100 sales associates                  and                  boasts a 50% regional market-share.  Currently 1                  MortgageBroker.com sales agent services this office.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 6)   | MortgageBrokers.com                  also executed a service level agreement with RE/MAX Lake Country                  Realty                  Limited which boasts a greater than 45% market share in the Bracebridge                  and Gravenhurst areas of Ontario and in excess of 35 sales                  associates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

*Human      Resources Activity:*

*Liquidity      and Capital Resources*

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| Ø   | $337,705                for the current portion of stock-based compensation related to a                10 year                RE/MAX marketing and service                agreement; |
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| Ø   | $995,956                for employee stock-based compensation;                and, |
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| Ø   | $151,641                for stock-based compensation accrual for origination and referral                services; |
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| Ø   | $232,082                for the current portion of stock-based compensation related to a                10 year                RE/MAX marketing and service                agreement; |
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| Ø   | $813,850                for employee stock-based compensation;                and, |
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| Ø   | $109,134                for stock-based compensation accrual for origination and referral                services; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| 1.   | Our                reported revenue for the period suggests that we presently have an                annualized book of business in excess of $2 billion. This does not                include                the significant recruitment to our national sales agency made in                Q1, whose                revenue is typically not seen for three to four months following                exclusive                licensure with the Company.  Management currently feel the                Company is tracking to have in excess of $10 million dollars in gross                revenue in 2007. |
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| 2.   | The                Company is decreasing operating losses quarter over quarter and expects                to                reach operational profitability within 2007 or the first half of                2008                assuming our existing cost structure is maintained and our current                level                of recruitment growth continues.                                                                                                                                                                                                                                                   |

*Critical      Accounting Policies*

*Subsequent      Events*

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**Item        3.**
**Controls and        Procedures**

** PART      II - OTHER INFORMATION**

**Item      1. Legal Proceedings.**

| 1.         | The                Company received a statement of claim from 1098704 Alberta Ltd for                the                amount of CDN $50,000. 1098704 Alberta Ltd was a reported investor                into                the business of a former licensed mortgage agent operating under                Company                licensure in Q4 2005 and Q1 2006. The claim was related to the                reimbursement of an investment between the claimant and the Company's                former mortgage agent subcontractor and the claimant was requesting                that                the Company repay the failed investment on behalf of the former                independent mortgage agent subcontractor.  In the opinion of the                Company and its legal counsel, the claim was without merit as the                Company                had no relationship, business or otherwise, with the claimant. The                Company                subsequently filed a statement of defense and a counter claim in                the                amount of CAD $1,000,000. It was agreed between the parties to file                mutual                discontinuances related to each party's claims and that mutual                indemnification releases be executed. Discontinuance, Settlement                and                Release agreements were executed between the parties on November                10,                2006. |
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|  2.   | Trisan                Equitable Corporation ("TRISAN") commenced an action in October 2006                in                Ontario, Canada against several parties including MortgageBrokers.com                Holdings, Inc. The statement of claim is for an aggregate payment                of                approximately $1.3 MM plus applicable interest related to a financing                agreement. The Company plans to vigorously defend itself in this                claim and                has launched a counter suit in Ontario Superior Court against TRISAN                and                related parties in the amount of $4.8 MM. Legal counsel for the Company                at                this time estimate that this claim maybe a reasonably possible contingent                liability for the Company of up to $520,000 plus applicable interest.                At                the present time, the Company and its legal counsel agree that the                outcome                of this proceeding cannot be reasonably determined at this                time.                                                                                                                                                                                                                                                                                                                                                                                     |
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|  3.   | The                Company received a statement of claim from Aliah Akram, a former                employee,                in the amount of approximately CDN $80,000 and 95,833 shares or shares                equivalent claiming wrongful dismissal. The company plans to vigorously                defend itself and has filed its statement of defense with the Ontario                Superior Court of Justice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

** Item      2. Changes in Securities.**

** Item      3. Defaults Upon Senior Securities.**

** Item      4. Submission of Matters to a Vote of Security Holders.**

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** Item      5. Other Information.**

** Item      6. Exhibits and Reports of Form 8-K.**

** SIGNATURES**

|   |                                             | **MORTGAGEBROKERS.COM                HOLDINGS, INC** . |
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|   |                                             |                                                   |
| Date:  | August                17, 2007                   | */s/                Alex Haditaghi*                    |
|   | Alex                Haditaghi                    |
|   | President,                Secretary and Director |