----

----

**AMENDMENT        NO. 1 TO FORM 10-QSB**

**MORTGAGEBROKERS.COM        HOLDINGS, INC.**

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

**260          Edgeley Boulevard, Suite 11, Concord, Ontario L4K          3Y4**

** **

**Registrant's        telephone number, including area        code:                                                                                                                       (877)        410-4848**

| **Class**                                           |      | Outstanding                  at November 18, 2006 |
|-----------------------------------------------------|--------------------------|---------------------------------------------------|
| **Common                  Stock, $.0001 par value** |                     | 35,992,470                                        |

----

**INDEX**

|                     |         |                                                                                                                                                                                   |         |     |
|--------------------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|----------|
|                     |    |                                                                                                                                                                                   |    | **PAGE** |
| PART I.             |    | FINANCIAL                  INFORMATION                                                                                                                                                 |    |     |
|                     |         |                                                                                                                                                                                   |
| Item                  1. |    | Financial                  Statements                                                                                                                                                  |    |     |
|                     |         |                                                                                                                                                                                   |
|                     |    | Unaudited                  Condensed Consolidated Balance Sheets at September 30, 2006 (Restated)                  andDecember                  31, 2005 (Restated)                    |    | 1        |
|                     |         |                                                                                                                                                                                   |
|                     |    | Unaudited                  Condensed Consolidated Statements of Operations for the Three and                  NineMonths                  Ended September 30, 2006 and 2005 (Restated) |    | 2        |
|                     |         |                                                                                                                                                                                   |
|                     |    | Unaudited                  Condensed Consolidated Statements of Cash flows for the NineMonths                  Ended September 30, 2006 and 2005 (Restated)                            |    | 3        |
|                     |         |                                                                                                                                                                                   |
|                     |    | Notes                  Unaudited to Condensed Consolidated Financial Statements                                                                                                        |         | 4-16     |
|                     |         |                                                                                                                                                                                   |
| Item                  2. |    | Management’s                  Discussion and Analysis or Plan of Operations                                                                                                      |    | 17       |
|                     |         |                                                                                                                                                                                   |
| Item                  3. |    | Controls                  and Procedures                                                                                                                                               |    | 24       |
|                     |         |                                                                                                                                                                                   |
| PART II.            |    | OTHER                  INFORMATION                                                                                                                                                     |    | 25       |
|                     |         |                                                                                                                                                                                   |
| Item                  6. |    | Exhibits                  and Reports on Form 8-K                                                                                                                                      |    | 25       |
|                     |         |
| Signatures               |    |                                                                                                                                                                                   |

**ITEM        1. FINANCIAL INFORMATION**

----

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

**(FORMERLY        MAGNADATA, INC.)**

**CONTENTS**

| Condensed                  Consolidated Interim Balance Sheets                                                   | **1**                       |
|------------------------------------------------------------------------------------------------------------------|-----------------------------|
| Condensed                  Consolidated Interim Statements of Operations and Comprehensive                  Loss | **2**                       |
| Condensed                  Consolidated Interim Statements of Cash Flows                                         | **3**                       |
| Notes                  to Condensed Consolidated Interim Financial Statements                                    | **4                  - 13** |

----

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

**(FORMERLY        MAGNADATA, INC.)**

|                                                                                                                                                  | **(Restated,                  Note 3)** |       | (Restated,                  Note 15) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|------------|--------------------------------------|--------|
|                                                                                                                                                  | **September                  30,**      |       | December                  31,        |   |
|                                                                                                                                                  | **2006**                                |       | 2005                                 |   |
|                                                                                                                                                  | **(Unaudited)**                         |       | (Audited)                            |   |
|                                                                                                                                                  |                                    |       |                                 |   |
| **ASSETS**                                                                                                                                            |                                    |
| **Current                    Assets**                                                                                                                 |                                    |       |                                 |   |
|  Cash                    and cash equivalents                                                                                                    |                                    | **$**      | **1,338,451**                        |   |   | $ | 169,093 |   |
|                         Referral fees held in trust                                                                               |                                    | ** ** | **10,863**                           |   |   |   | - |   |
|  Prepaid                    expense                                                                                                              |                                    | ** ** | **62,170**                           |   |   |   | 9,888 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Total                    Current Assets**                                                                                                           |                                    | ** ** | **1,411,484**                        |   |   |   | 178,981 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Furniture                    and Equipment, net**(note 4)                                                                                           |                                    | ** ** | **128,131**                          |   |   |   | 88,239 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Deferred                    Offering Costs, net**                                                                                                   |                                    | ** ** | **-**                                |   |   |   | 8,598 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Total                    Assets**                                                                                                                   |                                    | **$**      | **1,539,615**                        |   |   | $ | 275,818 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **LIABILITIES**                                                                                                                                       |
| **Current                    Liabilities**                                                                                                            |                                    |       |                                 |   |   |   |   |   |
|  Bank                    indebtedness (note 5)                                                                                                   |                                    | **$**      | **103,001**                          |   |   | $ | 94,578 |   |
|  Trust                    liability                                                                                                              |                                    | ** ** | **10,863**                           |   |   |   | - |   |
|  Accounts                    payable                                                                                                             |                                    | ** ** | **139,681**                          |   |   |   | 84,767 |   |
|  Accrued                    liabilities                                                                                                          |                                    | ** ** | **316,090**                          |   |   |   | 86,829 |   |
|  Notes                    payable (note 6)                                                                                                       |                                    | ** ** | **-**                                |   |   |   | 118,160 |   |
|  Advances                    from related party (note 7)                                                                                         |                                    | ** ** | **243,610**                          |   |   |   | 332,865 |   |
| Stock-based                    compensation accrual – current portion (note 8a)                                                                 |                                    | ** ** | **85,360**                           |   |   |   | - |   |
| Employee                    stock-based compensation accrual (note 8b)                                                                                |                                    | ** ** | **456,212**                          |   |   |   | 625,911 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Total                    Current Liabilities**                                                                                                      |                                    | ** ** | **1,354,817**                        |   |   |   | 1,343,110 |   |
|  Stock-based                    Compensation Accrual (note 8c)                                                                                   |                                    | ** ** | **36,458**                           |   |   |   | - |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Total                    Liabilities**                                                                                                         |                                    | ** ** | **1,391,275**                        |   |   |   | 1,343,110 |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Commitments**(note 14)                                                                                                                              |                                    |       |                                 |   |   |   |   |   |
| **STOCKHOLDERS’                    EQUITY**                                                                                                     |
| **Capital                    Stock**(note 9)                                                                                                          |                                    |       |                                 |   |   |   |   |   |
| Preferred                    stock, $0.0001 par value; 5,000,000 shares authorized, none issued                    and                    outstanding |                                    | ** ** | **-**                                |   |   |   | - |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| Common                    stock, $0.0001 par value; 100,000,000 shares                    authorized;                                                 |                                    |       |                                 |   |   |   |   |   |
| 35,992,470                    (2005: 33,935,000) issued and outstanding                                                                               |                                    | ** ** | **3,599**                            |   |   |   | 3,394 |   |
|                                                                                                                                                  |                                    | ** ** |                                 |   |   |   |   |   |
| **Additional                    Paid-in Capital**                                                                                                     |                                    | ** ** | **2,128,557**                        |   |   |   | 760,111 |   |
|                                                                                                                                                  |                                    | ** ** |                                 |   |   |   |   |   |
| **Additional                    Paid-in Capital - Warrants**(note 10)                                                                                 |                                    | ** ** | **732,605**                          |   |   |   | - |   |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Subscription                    for Stock**                                                                                                         |                                    | ** ** | **-**                                |   |   |   | 100,000 |   |
|                                                                                                                                                  |                                    | ** ** |                                 |   |   |   |   |   |
| **Subscription                    Receivable**(note 11)                                                                                               |                                    | ** ** | **(242,301**                         | **)**  |   |   | (630,000 | ) |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Accumulated                    Other Comprehensive (Loss) Income**                                                                                  |                                    | ** ** | **(63,470**                          | **)**  |   |   | 3,213 |   |
|                                                                                                                                                  |                                    | ** ** |                                 |   |   |   |   |   |
| **Accumulated                    Deficit**                                                                                                            |                                    | ** ** | **(2,410,650**                       | **)**  |   |   | (1,304,010 | ) |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Total                    Stockholders’ Equity (Deficit)**                                                                                     |                                    | ** ** | **148,341**                          |   |   |   | (1,067,292 | ) |
|                                                                                                                                                  |                                    |       |                                 |   |   |   |   |   |
| **Total                    Liabilities and Stockholders’ Equity**                                                                               |                                    | **$**      | **1,539,615**                        |   |   | $ | 275,818 |   |

----

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

**(FORMERLY        MAGNADATA, INC.)**

|                                                                                                        |   | **(Restated,                  Note 3)**                                           |           |   | (Restated)                                                            |   |       | **(Restated,                  Note 3)**                            |   |       | (Restated)                                         |   |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|----------------|--------|-----------------------------------------------------------------------|--------|------------|--------------------------------------------------------------------|--------|------------|----------------------------------------------------|--------|
|                                                                                                        |   | **Three                  Months****Ended****September                  30, 2006** |           |   | Three                  MonthsEndedSeptember                  30, 2005 |   |       | **Nine****Months****Ended****September                  30, 2006** |   |       | NineMonthsEndedSeptember                  30, 2005 |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |
| **Revenues**                                                                                                |   | **$**                                                                             | **1,306,746**  |   |                                                                  | $      | 86,711     |                                                               |   | **$**      | **2,396,481**                                      |   |   | $ | 119,181 |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Expenses**                                                                                                |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| Commission                    and agent fees                                                                |   | ** **                                                                        | **962,124**    |   |                                                                  |   | -          |                                                               |   | ** ** | **1,805,084**                                      |   |   |   | - |   |
| General                    and administrative expenses                                                      |   | ** **                                                                        | **245,114**    |   |                                                                  |   | 203,784    |                                                               |   | ** ** | **947,371**                                        |   |   |   | 329,542 |   |
| Salaries                    and benefits                                                                    |   | ** **                                                                        | **198,800**    |   |                                                                  |   | -          |                                                               |   | ** ** | **596,306**                                        |   |   |   | 100,381 |   |
| Stock                    based compensation (note 14c ii)                                                   |   | ** **                                                                        | **60,097**     |   |                                                                  |   | -          |                                                               |   | ** ** | **85,360**                                         |   |   |   | - |   |
| Stock                    based compensation (note 14a, 14b, and 14c i)                                      |   | ** **                                                                        | **3,432**      |   |                                                                  |   | -          |                                                               |   | ** ** | **36,458**                                         |   |   |   | - |   |
| Employee                    stock-based compensation (note 8b)                                              |   | ** **                                                                        | **(222,153**   | **)**  |                                                                  |   | 310,479    |                                                               |   | ** ** | **(169,700**                                       | **)**  |   |   | 465,062 |   |
| Occupancy                    costs (note 12)                                                                |   | ** **                                                                        | **27,236**     |   |                                                                  |   | -          |                                                               |   | ** ** | **85,231**                                         |   |   |   | - |   |
|     Interest                    expense - beneficial conversion feature (note 6)        |   | ** **                                                                        | **-**          |   |                                                                  |   | -          |                                                               |   | ** ** | **108,840**                                        |   |   |   | - |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Total                    Operating Expenses**                                                             |   | ** **                                                                        | **1,274,650**  |   |                                                                  |   | 514,263    |                                                               |   | ** ** | **3,494,950**                                      |   |   |   | 894,985 |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Income                    (Loss) from Operations**                                                        |   | ** **                                                                        | **32,096**     |   |                                                                  |   | (427,552   | )                                                                  |   | ** ** | **(1,098,469**                                     | **)**  |   |   | (775,804 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Other                    Expenses**                                                                       |   | ** **                                                                        | **(1,820**     | **)**  |                                                                  |   | (388       | )                                                                  |   | ** ** | **(8,171**                                         | **)**  |   |   | (473 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Income                    (Loss) Before the Undernoted**                                             |   | ** **                                                                        | **30,276**     |   |                                                                  |   | (427,940   | )                                                                  |   | ** ** | **(1,106,640**                                     | **)**  |   |   | (776,277 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **       **Gain on extinguisment of debt                       |   | ** **                                                                        | **-**          |   |                                                                  |   | -          |                                                               |   | ** ** | **-**                                              |   |   |   | 80,425 |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Income                    (Loss) Before Income Taxes**                                                    |   | ** **                                                                        | **30,276**     |   |                                                                  |   | (427,940   | )                                                                  |   | ** ** | **(1,106,640**                                     | **)**  |   |   | (695,852 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| Provision                    for income taxes (note 13)                                                     |   | ** **                                                                        | **-**          |   |                                                                  |   | -          |                                                               |   | ** ** | **-**                                              |   |   |   | - |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Net                    Income (Loss)**                                                                    |   | ** **                                                                        | **30,276**     |   |                                                                  |   | (427,940   | )                                                                  |   | ** ** | **(1,106,640**                                     | **)**  |   |   | (695,852 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
|                             Foreign Currency Translation Adjustment |   | ** **                                                                        | **(73,204**    | **)**  |                                                                  |   | 21,752     |                                                               |   | ** ** | **(63,470**                                        | **)**  |   |   | 20,336 |   |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Total                    Comprehensive Loss**                                                             |   | **$**                                                                             | **(42,928**    | **)**  |                                                                  | $      | (406,188   | )                                                                  |   | **$**      | **(1,170,110**                                     | **)**  |   | $ | (675,516 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Basic                    and Diluted Loss Per Share**                                                     |   | **$**                                                                             | **(0.00**      | **)**  |                                                                  | $      | (0.01      | )                                                                  |   | $          | (0.03                                              | )      |   | $ | (0.03 | ) |
|                                                                                                        |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **Weighted                    average number of shares**                                                    |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **outstanding                    during the periods -**                                                     |   |                                                                              |           |   |                                                                  |   |       |                                                               |   |       |                                               |   |   |   |   |   |
| **basic                    and diluted**                                                                    |   | ** **                                                                        | **35,992,470** |   |                                                                  |   | 32,935,000 |                                                               |   | ** ** | **35,067,052**                                     |   |   |   | 26,964,003 |   |

----

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

**(FORMERLY        MAGNADATA, INC.)**

|                                                                                                                                            |   | **(Restated,                  Note 3)** |           |   | (Restated) |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------------|--------|------------|------------|
|                                                                                                                                            |   | **2006**                                |           |   | 2005       |       |
| **Cash                  Flows from Operating Activities**                                                                                       |   |                                    |           |   |       |       |
| Net                    loss                                                                                                                     |   | **$**                                   | **(1,106,640** | **)**  |       | $          | (695,852 | ) |
| Adjustments                    to reconcile net loss to net cash used in                                                                        |   |                                    |           |   |       |       |   |   |
| operating                    activities:                                                                                                        |   |                                    |           |   |       |       |   |   |
| Depreciation                    and amortization                                                                                                |   | ** **                              | **26,225**     |   |       |       | 3,912 |   |
|                            Gain on forgiveness of debt                                                       |   |                                    | -              |   |       |       | (80,425 | ) |
| Interest                    expense - beneficial conversion feature                                                                             |   | ** **                              | **108,840**    |   |       |       | - |   |
| Stocks                    issued for services                                                                                                   |   | ** **                              | **441,000**    |   |       |       | - |   |
|                                    Employee stock-based compensation |   | ** **                              | **(169,700**   | **)**  |       | ** ** | **465,062** |   |
|             Stock-based                    compensation accrual                     |   | ** **                              | **121,818**    |   |       | ** ** | **-** |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| Changes                    in non-cash working capital:                                                                                         |   |                                    |           |   |       |       |   |   |
|                            Referral fees held in trust                                                       |   | ** **                              | **(10,863**    | **)**  |       |       | - |   |
| Prepaid                    expense                                                                                                              |   | ** **                              | **(52,282**    | **)**  |       |       | (4,314 | ) |
| Loan receivable                                                                                                                            |   | ** **                              | **-**          |   |       |       | (31,452 | ) |
| Accounts                    payable and accrued liabilities                                                                                     |   | ** **                              | **361,098**    |   |       |       | 211,828 |   |
| Trust                    liability                                                                                                              |   | ** **                              | **10,863**     |   |       |       | - |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Net                    Cash Used in Operating Activities**                                                                                    |   | ** **                              | **(269,641**   | **)**  |       |       | (131,241 | ) |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Cash                    Flows from Investing Activities**                                                                                     |   |                                    |           |   |       |       |   |   |
| Purchase                    of furniture and equipment                                                                                          |   | ** **                              | **(7,316**     | **)**  |       |       | (94,085 | ) |
| Investment                                                                                                                                      |   | ** **                              | **-**          |   |       |       | (8,000 | ) |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Net                    Cash Used in Investing Activities**                                                                                    |   | ** **                              | **(7,316**     | **)**  |       |       | (102,085 | ) |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Cash                    Flows from Financing Activities**                                                                                     |   |                                    |           |   |       |       |   |   |
| Deferred                    offering costs                                                                                                      |   | ** **                              | **8,598**      |   |       |       | - |   |
| Proceeds                    from notes payable                                                                                                  |   | ** **                              | **23,000**     |   |       |       | 60,387 |   |
| Issuance                    of common stock for cash                                                                                            |   | ** **                              | **829,627**    |   |       |       | 212,476 |   |
| Repayment                    of advances from related party                                                                                     |   | ** **                              | **(89,255**    | **)**  |       |       | - |   |
| Proceeds                    from issuance of warrants                                                                                           |   | ** **                              | **732,605**    |   |       |       | - |   |
|                            Proceeds from  bank indebtedness                                             |   | ** **                              | **8,423**      |   |       |       | - |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Net                    Cash Provided by Financing Activities**                                                                                |   | ** **                              | **1,512,998**  |   |       |       | 272,863 |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Net                    Increase in Cash**                                                                                                     |   | ** **                              | **1,236,041**  |   |       |       | 39,537 |   |
| **Effect of                    Foreign Exchange Rate Changes**                                                                             |   | ** **                              | **(66,683**    | **)**  |       |       | 20,336 |   |
| **Cash                    - beginning of period**                                                                                               |   | ** **                              | **169,093**    |   |       |       | 8,416 |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Cash                    - end of period**                                                                                                     |   | **$**                                   | **1,338,451**  |   |       | $          | 68,289 |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| **Supplemental                    Cash Flow Information**                                                                                       |   |                                    |           |   |       |       |   |   |
| Interest                    paid                                                                                                                |   | **$**                                   | **5,315**      |   |       | $          | - |   |
|                                                                                                                                            |   |                                    |           |   |       |       |   |   |
| Income                    taxes paid                                                                                                            |   | $                                       | -              |   |       | $          | - |   |

----

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

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

----

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

**2**

**Summary        of Significant        Accounting Policies**

| a)   | Interim                    Financial Statements |
|----------------|-------------------------------------------------|

|   | b)   | Basis                    of Consolidation and                    Presentation |
|--------|----------------|-------------------------------------------------------------------------------|

|   | c)  | Recent                    Accounting Pronouncements |
|--------|----------|-----------------------------------------------------|

----

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

**2.**

**Summary        of Significant        Accounting Policies **

|   | d)  | Recent                    Accounting Pronouncements                    (continued) |
|--------|----------|------------------------------------------------------------------------------------|

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

|   | a) | It                  was determined that the                  Company inadvertently excluded warrants accrued for mortgage agent                  sales                  and associated referrals from strategic alliance partners in the                  third                  quarter. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | b) | It                  was determined that the                  Company inadvertently deferred offering costs finalized in the                  second                  quarter. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | c) | The                  Company inadvertently                  recorded as cash, the funds that related to payable referral fees                  held in                  trust. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | d) | It                  was determined that the                  Company inadvertently classified a prepaid amount as additional                  paid in                  capital. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | e) | It                  was determined that the                  Company incorrectly classified a due to shareholder amount as a                  note                  payable. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | f) | Funds                  received by the Company                  where inadvertently recorded as advances from related party when                  the funds                  actually related to capital stock and additional capital                  paid. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | g) | It                  was determined that the                  Company inadvertently excluded warrants granted in a private placement                  the                  company closed on June 12, 2006. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | h)   | It                was determined that the company inadvertently excluded employee                stock-based compensation accrual. |
|--------|----------------|------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | i) | 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**

**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 September 30, 2006** |   |                                          |       |   |       |   |     |         |   |
| Stock                    based compensation (g)                                                                                                                                      |   | $                                             | -          |   |       | $      | 60,097   |         |   | $ | 60,097 |   |
| Stock                    based compensation (a)                                                                                                                                      |   | $                                             | -          |   |       | $      | 3,432    |         |   | $ | 3,432 |   |
| Employee                    stock based compensation (h)                                                                                                                             |   | $                                             | -          |   |       | $      | (222,153 | )            |   | $ | (222,153 | ) |
| General                    and administrative expenses (b)                                                                                                                           |   | $                                             | 264,811    |   |       | $      | (19,697  | )            |   | $ | 245,114 |   |
| Net                    loss                                                                                                                                                          |   | $                                             | (148,049   | )      |       | $      | 178,325  |         |   | $ | 30,276 |   |
| Foreign                    currency translation adjustment                                                                                                                           |   | $                                             | (64,675    | )      |       | $      | (8,529   | )            |   | $ | (73,204 | ) |
|                                                                                                                                                                                 |   |                                          |       |   |       |   |     |         |   |   |   |   |
| **Condensed                    Consolidated Interim Statement of Operations and Comprehensive                    Loss for                    the 9 months ended September 30, 2006** |   |                                          |       |   |       |   |     |         |   |   |   |   |
|  Stock                    based compensation (g)                                                                                                                                |   | $                                             | -          |   |       | $      | 85,360   |         |   | $ | 85,360 |   |
|  Stock                    based compensation (a)                                                                                                                                |   | $                                             | -          |   |       | $      | 36,458   |         |   | $ | 36,458 |   |
|  Employee                    stock based compensation (h)                                                                                                                       |   |                                          |       |   |       | $      | (169,700 | )            |   |   | (169,700 | ) |
|  General                    and administrative expenses (b)                                                                                                                     |   | $                                             | 960,202    |   |       | $      | (12,831  | )            |   | $ | 947,371 |   |
|  Interest                    expense – beneficial conversion feature (i)                                                                                                  |   | $                                             | -          |   |       | $      | 108,840  |         |   | $ | 108,840 |   |
|  Net                    loss                                                                                                                                                    |   | $                                             | (1,058,517 | )      |       | $      | (48,123  | )            |   | $ | (1,106,640 | ) |
|  Foreign                    currency translation adjustment                                                                                                                     |   | $                                             | (66,402    | )      |       | $      | (2,932   | )            |   | $ | (63,470 | ) |
|                                                                                                                                                                                 |   |                                          |       |   |       |   |     |         |   |   |   |   |
| **Condensed                    Consolidated Interim Balance Sheet**                                                                                                                  |   |                                          |       |   |       |   |     |         |   |   |   |   |
| Cash                    and cash equivalence(c)                                                                                                                                      |   | $                                             | 1,349,303  |   |       | $      | (10,852  | )            |   | $ | 1,338,451 |   |
| Referral                    fees held in trust (c)                                                                                                                                   |   | $                                             | -          |   |       | $      | 10,863   |         |   | $ | 10,863 |   |
| Prepaid                    expenses (d)                                                                                                                                              |   | $                                             | 37,170     |   |       | $      | 25,000   |         |   | $ | 62,170 |   |
| Note                    payable (e)                                                                                                                                                  |   | $                                             | 18,360     |   |       | $      | (18,360  | )            |   | $ | - |   |
| Trust                    liability (c)                                                                                                                                               |   | $                                             | -          |   |       | $      | 10,863   |         |   | $ | 10,863 |   |
| Advances                    from related party (e), (f)                                                                                                                              |   | $                                             | 251,774    |   |       | $      | (8,164   | )       |   | $ | 243,610 |   |
| Stock-based                    compensation accrual – current portion (g)                                                                                                      |   | $                                             | -          |   |       | $      | 85,360   |         |   | $ | 85,360 |   |
| Employee                    stock-based compensation accrual (h)                                                                                                                     |   | $                                             | -          |   |       | $      | 456,212  |         |   | $ | 456,212 |   |
| Stock-based                    compensation accrual (a)                                                                                                                              |   | $                                             | -          |   |       | $      | 36,458   |         |   | $ | 36,458 |   |
| Additional                    paid-in capital (a), (d), (f), (g)                                                                                                                     |   | $                                             | 2,698,600  |   |       | $      | (570,042 | )            |   | $ | 2,128,558 |   |
| Additional                    paid-in capital - warrants (g)                                                                                                                         |   | $                                             | -          |   |       | $      | 732,605  |         |   | $ | 732,605 |   |
| Deficit                                                                                                                                                                              |   | $                                             | (1,718,923 | )      |       | $      | (691,727 | )            |   | $ | (2,410,650 | ) |
| Accumulated                    other comprehensive loss                                                                                                                              |   | $                                             | (55,274    | )      |       | $      | (8,196   | )            |   | $ | (63,470 | ) |

----

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

**4.          Furniture        and Equipment,        net**

|                                           |   |       |        |   |                            |       |       |                                                                                  |   |       |                                                                 |   |
|------------------------------------------------|--------|------------|-------------|--------|---------------------------------|------------|------------|---------------------------------------------------------------------------------------|--------|------------|----------------------------------------------------------------------|--------|
|                                           |   | **Cost**   |        |   | **Accumulated****Depreciation** |       |       | **September                  30, 2006****Net                  Book****Value****2006** |   |       | December                  31, 2005Net                  BookValue2005 |   |
|                                           |   |       |        |   |                            |       |       |                                                                                  |   |       |                                                                 |   |
| Furniture                  and equipment       |   | **$**      | **110,542** |   |                            | **$**      | **22,331** |                                                                                  |   | **$**      | **88,211**                                                           |   |   | $ | 58,442 |   |
| Computer                  equipment            |   | ** ** | **19,846**  |   |                            | ** ** | **5,056**  |                                                                                  |   | ** ** | **14,790**                                                           |   |   |   | 29,285 |   |
| Computer                  software (see below) |   | ** ** | **26,200**  |   |                            | ** ** | **5,903**  |                                                                                  |   | ** ** | **20,297**                                                           |   |   |   | - |   |
| Leasehold                  improvements        |   | ** ** | **5,688**   |   |                            | ** ** | **855**    |                                                                                  |   | ** ** | **4,833**                                                            |   |   |   | 512 |   |
|                                           |   | ** ** |        |   |                            | ** ** |       |                                                                                  |   | ** ** |                                                                 |   |   |   |   |   |
|                                           |   | **$**      | **162,276** |   |                            | **$**      | **34,145** |                                                                                  |   | **$**      | **128,131**                                                          |   |   | $ | 88,239 |   |
|                                           |   |       |        |   |                            |       |       |                                                                                  |   |       |                                                                 |   |   |   |   |   |

** **

| **5. ** | **Bank                  Indebtedness** |
|--------------|----------------------------------------|

**6.           Note        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**

**6.**

**Note        Payable**

**  **

**7.           Advances        from Related        Party**

**8.           Stock-based        Compensation        Accrual**

----

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

**9.             Capital        Stock**

| i)   | the                    purchaser received a warrant 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,                        on the anniversary date                        of the private placement closure, the company has agreed                        to issue a number                        of shares equal to 25% of the number of common shares purchased                        through                        the private placement for ten consecutive anniversary dates.                        The receipt                        of such shares is dependant on the execution and maintenance                        in good                        standing of the terms of a service level agreement for the                        ten year                        period. The service level agreement includes the provisions                        of marketing,                        servicing, and promotional                        services. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

**9.**

**Capital Stock**

----

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

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

**11.                     Subscription        Receivable**

**12.                     Occupancy        Costs**

----

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

**13.                  Income        Taxes**

|                                                                             | **(Restated)****Nine                  Months** |       | (Restated)Nine                  Months |   |
|----------------------------------------------------------------------------------|------------------------------------------------|------------|----------------------------------------|--------|
|                                                                             | **Ended**                                      |       | Ended                                  |   |
|                                                                             | **September                  30,**             |       | September                  30,         |   |
|                                                                             | **2006**                                       |       | 2005                                   |   |
|       Deferred                  Income Tax Assets: |                                           |       |                                   |   |
|                    Operating loss carry forward                             |                                           | **$**      | **623,091**                            |   |   | $ | 133,014 |   |
|                    Valuation allowance                                      |                                           | ** ** | **(623,091**                           | **)**  |   |   | (133,014 | ) |
|                                                                             |                                           |       |                                   |   |   |   |   |   |
|                    Total deferred tax effect                                |                                           | $          | -                                      |   |   | $ | - |   |

|                                                     |   | **(Restated)****September                  30,** |         |   | (Restated)September                  30, |   |
|----------------------------------------------------------|--------|--------------------------------------------------|--------------|--------|------------------------------------------|--------|
|                                                     |   | **2006**                                         |         |   | 2005                                     |   |
|                                                     |   |                                             |         |   |                                     |   |
| Deferred                  Tax Provision:                 |   |                                             |         |   |                                     |   |
|                                                     |   |                                             |         |   |                                     |   |
| Benefit                  at Federal statutory rate (34%) |   | **$**                                            | **406,182**  |   |                                     | $      | 32,541 |   |
| Change                  in Valuation allowance           |   | ** **                                       | **(406,182** | **)**  |                                     |   | (32,541 | ) |
|                                                     |   |                                             |         |   |                                     |   |   |   |
| Provision                  for income taxes              |   | $                                                | -            |   |                                     | $      | - |   |
|                                                     |   |                                             |         |   |                                     |   |   |   |
| Current                  Tax Provision                   |   |                                             |         |   |                                     |   |   |   |
| Federal                  and State income tax            |   | $                                                | -            |   |                                     | $      | - |   |

----

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

**14.           Commitments**

** **

| *a)  * | *Independent                  Mortgage Agents* |
|------------------|------------------------------------------------|

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

|   | Number                  of Warrants: | USD                  $8,257 worth of warrants divided by the Strike Price, per CDN $10                  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: | 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: | USD                  $1,651 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                  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 |
|--------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| *b)  * |            *Maxwell                  Realty Inc.* |
|------------------|----------------------------------------------------------------------------------------------------------|

----

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

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

| *c)  * | *RE/MAX* |
|------------------|----------|

| *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: | 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 |
|--------|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| *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. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *d)  * | The                  Company has signed lease agreements for their various locations                  for their                  occupancy space. Committed future payments are as                  follows: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2006       |   | $      | 14,110 |   |
|------------|--------|--------|--------|--------|
|       |   |   |   |   |
| 2007       |   | $      | 22,017 |   |
|       |   |   |   |   |
| 2008       |   | $      | 15,132 |   |
|       |   |   |   |   |
| 2009  |   | $      | 7,566  |   |

----

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

**15.               Comparative        Figures**

----

**ITEM        2. MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")**

**CAUTIONARY        NOTE REGARDING FORWARD-LOOKING STATEMENTS**

*This        MD&A may contain 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 here-in. For this purpose, any        statements contained in this Management Discussion and Analysis 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 Company's stock. Many of the factors, which could cause        actual        results to differ from forward looking statements, are outside our        control.*

*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 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, and marketing                  services. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Agents 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        Activity*

----

*Additional        Company Activities of Note:*

| 1. | In                  support for the Company's 2007 United States market entry planning,                  the                  Company attended the October, 2006 annual Mortgage Bankers Association                  conference in Chicago, Illinois. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The                  company Canadian operations management staff held a strategic focus                  and                  planning session for three days in November, 2006 facilitated by                  Managerial Design Corporation to strengthen the management team's                  effectiveness and goal setting for                  2007. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The                  Company has retained a brand manager and has produced a suite of                  marketing                  material explaining the Company's value proposition to the various                  market                  stakeholders. The Company has received very promising market feedback                  from                  this brand building initiative. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                  Company is confirmed to have a booth at the Canadian Institute                  of Mortgage                  Brokers and Lenders (CIMBL) Annual Mortgage Conference and Exposition                  in                  Montreal, Canada. This year's highlighted presenter is Anthony                  Robins on                  "Achieving Excellence".  It is expected that the premier                  exposition will attract in excess of 2000 mortgage agent and lender                  companies with an anticipated attendance of 2,300                  delegates. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5. | On                  September 7th, the Company had an exhibitors booth in the Alberta                  Mortgage                  Brokers Association (AMBA) annual general meeting and tradeshow                  where                  there were approximately 60 exhibitors and 500 mortgage agents                  and lenders                  in attendance. |
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*Liquidity        and Capital Resources*

| Ø   | $85,360                  for the current portion of stock-based compensation related to                  a 10 year                  RE/MAX marketing and service                  agreement; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | $456,212                  for employee stock based compensation;                  and, |
|--------------------|----------------------------------------------------------------------------------------|

| Ø   | $36,458                  for stock-based compensation accrual for origination referral                  services; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

*Subsequent        Events*

|   | 1. | On                  November 6, 2006, the company announced the hiring and appointment                  of Mr.                  Miles Kulik as President of MortgageBrokers.com Financial Group                  of                  Companies Inc. Mr. Kulik's immediate responsibility is to lead                  the                  Company's Canadian operations in building the national sales agency                  network. Miles Kulik has been an especially key contributor to                  Canada's                  mortgage industry through his involvement on various trusts, brokerages,                  and financial institutions advisory boards. He is considered to                  be one of                  Canada's pioneers in consolidating brokerage operations having                  completed                  his first consolidation over 5 years ago. Mr. Kulik honed his expertise                  and leadership skills over 15 years in the mortgage industry and                  has                  extensive market research expertise in both Canada and Australia.                  His                  international knowledge will enrich the Company's management team                  and help                  us meet our objective to be an international mortgage origination                  leader. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | On                  November 8, 2006, the company announced the hiring and appointment                  of Mr.                  Peter Doherty, as the Vice President, Business Development of                  MortgageBrokers.com Financial Group of Companies Inc. Mr. Doherty                  is an                  accomplished executive in the Canadian mortgage industry, where                  he has                  held senior management positions with various companies including                  Mortgage                  Intelligence ( A GMAC company), FirstLine Mortgages and XCEED Mortgage                  Corp., leading strategic projects and business                  units. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Critical        Accounting Policies*

**ITEM        3. CONTROLS AND PROCEDURES**

| (a) | Evaluation                  of Disclosure Controls                  and Procedures. |
|-----|-------------------------------------------------------------------------------------|

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**PART        II. OTHER INFORMATION**

**Item          1.  **Legal          Proceedings****

**Item        2.        Changes in        Securities.**

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

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

**Item        5.        Lease        Commitments**

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

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**SIGNATURES**

|                             |  **MortgageBrokers.com                Holdings, Inc.**                         |
|----------------------------------|-------------------------------------------------------------------------------------|
|                             |                                                                                |
|                             |                                                                                |
| August                  17, 2007 | By: /s/*Alex                  Haditaghi*                                       |
|                             | Alex                  Haditaghi, President, Secretary and                  Director |