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Mortgage Broker News | 18 Oct 2013, 12:00 AM Agree 0
As lending rules are continually tightened, some brokers may look to diversify their offering by targeting clients who do not fit the typical A-type profile. However, one leading broker in this space believes it takes a whole other skill-set than more traditional deals do.
  • Paolo Di Petta | dipettamortgage.com | 21 Oct 2013, 06:44 AM Agree 0
    "Selling payment instead of rate" is oversimplying it a little.

    What we're really doing in the B/Private space is much more thorough than just selling a rate OR a payment - we're taking an even deeper look into someone's finances, crunching the numbers, and trying to find a situation that will save them money in the long run (and hopefully, will put them back into the "A" pool sooner)

    There's many more moving parts in these sorts of deals - lenders are much more specific about the niches they're interested in, there's less competition between lenders, and borrower financial histories are usually much more complicated.

    This is not a high volume business - some (but not all) of the economies of scale that bigger brokerages have been able to find on the A-side are much harder to accomplish in this sort of market - every deal is different and requires more individual attention.

    As the housing market corrects, the pace of bi-annual refi's and new home purchases will slow. I'd be willing to bet that this means the number of brokers is going to shrink proportionally to amount of "A" business in coming years.

    I saw this coming, so I chose this market as my niche. If anyone has any Ontario deals they need help with, just Google me - I make myself very easy to reach.
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