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Mortgage Broker News | 06 Jul 2015, 08:50 AM Agree 0
A new broker network was recently launched and it hopes to offer big bank services.
  • Ron Butler | 06 Jul 2015, 03:32 PM Agree 0
    I wish Jason all the best, doing something new and growing a business from a standing start is super hard and it should be commended. Anyone who tries to create something from nothing in the business world needs sincere props because private sector employment growth is what this country needs.

    The interesting thing is that both Jason and John Bargis at CIMBC have expressed the desire to offer better deals to brokerages and as a pass through better deals to brokers and agents across the country. Ultimately this has to be addition by subtraction and Jason was very honest and mentioned in this article agent / broker and brokerage take-away from Invis, Centum, Verico, etc.

    Well, with CIMBC and Broker Financial Group looking to grow and take away volume from other existing networks and superbrokers the question becomes how will lenders react to the concept of still more new networks and brokerages to receive overrides and potentially be asked to fund more events and functions. It is question I just don't know the answer to.

    I also don't know how other networks and superbrokers will react to amped up solicitation of their people and brokerages. In a marketplace where origination growth is really just a function of increased property values and transaction velocity not really an increase in broker effectiveness, lenders may eventually start to wonder if the re-direction of override money to a higher number of beneficiaries is in their long term interest.

    Finally how will the constant compression of brokerage owner income through rate discounting coupled with ongoing pressure to offer better splits and lower volume levels ultimately play out. While I am a strong believer in market forces selecting winners and losers there is sure to be some pain along the way and when the merry-go-round of property value increases in the two big markets starts to slow there will clearly be a need for consolidation in some form.

    Never a dull moment in mortgage broker world.
  • Gary | 07 Jul 2015, 10:20 PM Agree 0
    Give me a break! what does Jason and his company have?

    Do they even have a CRM, no Marketing team, no Payroll and compliance? They do NOT have top volume Bonus with all the lenders, I am 100% sure of that.

    Their website doesn't even function properly!
  • Matt | 07 Jul 2015, 10:55 PM Agree 0
    I guess most brokers don’t realize that there is no money in brokerages unless you are at $8.0+ Billion brokerage on a decent commission split.

    Let’s say Jason builds a Brokerage with $4.0 Billion in volume, forget flat fee model, even at 95-5% that’s only $2.0 Million in bottom line. Your CEO will cost you $200-250 per year. Your operation manager $150K, Your VP of marketing $120K, your CRM development $200K year, you will need 3 RVP at least. That’s another $100K per RVP, your VP of training will cost you $100K, you will need broker of the records for every province, your payroll staff, CRM staff , Compliance staff, graphic designers, your programmers,….. You will need a team of 10-14 people to manage this business. There is no margin and no profits!

    Why would a smart and reputable broker want to Leave profitable and stable companies like DLC, Verico, Mortgage Architects or Invis and join a risky start-up?

    All these brokerages have better and higher volume bonuses, CRM, better deals on life & mortgage insurance and other ancillary products. Both Mortgage Architects and Invis currently give 97-3% splits on a full service model (payroll, compliance, Marketing,..).

    Verico, Mortgage Alliance, Mortgage Architects do not charge for their CRM! It’s completely free and these companies have spent millions and many years to build it! Even if Jason and his team start to build their CRM now, it will take them 3-4 years to catch up to the other players!

    Why would an established and reputable broker would want to join a start-up that is not approved by all lenders or doesn’t get top volume bonus with all the lenders?

    Lets get real People!
  • Rob Campbell, Mortgage Wellness | 08 Jul 2015, 03:53 AM Agree 0
    Folks....first off, lets give Jason a pat on the back for having the balls. I agree with Mr. Butler's comment, to create this from nothing is a success in itself.

    Also, I'm sure at Jason's level he won't be writing deals. No need to hire a CEO, right? Aren't many big Broker Owners already running multiple offices and agents?

    CRM's are a dime a dozen. Custom made software is costly, yes, but its 2015 not 2005. Many big providers like Salesforce have customizable offshoots that are pretty slick and cost effective. Also, as you probably know, your CRM is only as good as the user so if the team doesn't use the free CRM, it was useless to setup in the first place.

    I wish him well, another disturbance in the force makes everyone else snap out of it for a few months and focus on their team. :)

  • Ryan | 10 Jul 2015, 04:38 PM Agree 0
    Wow... Gary & Matt... you have the most ridiculous response. Are you really that narrow minded that your first response is to attack someone who is trying to shake up things and offer something different?

    How do you think Invis, Mortgage Group, Verico etc started? ALL started at the same point that BFG is at now.

    If BFG lacks a marketing team, No CRM etc as Gary says and "Why would a smart and reputable broker want to Leave profitable and stable companies like DLC, Verico, Mortgage Architects or Invis and join a risky start-up?" as Matt has pointed out...

    Then why have the reaction you have both had? BFG are nothing right? They will fail because they lack any of these things. God knows it's impossible to build and forge these things over time just like ANY small business that is now large has done.

    Nice scarcity mindset guys... give your head a shake.


  • Tim | 12 Jul 2015, 02:31 PM Agree 0
    Matt,

    Wow, that's quite a list of expensive talent that you've provided for a START-UP.

    - CEO - $200-250 per year
    - operation manager $150K
    - VP of marketing $120K
    - $100K per RVP
    - your VP of training will cost you $100K

    $100k for a VP of TRAINING? $120k for a VP of Marketing? Right off the bat as soon as the business' doors have opened? Why would anyone commit to a $100k SALARY for an RVP? Ever heard of base + commission, or performance based pay?

    VP of Marketing for a start-up. Ever heard of outsourcing?


    Most start-ups start with a few experienced people who wear many hats. Then, if revenue permits, they expand and bring in additional people for specialized roles.
  • Eddie Quindamo | 13 Jul 2015, 09:43 AM Agree 0
    This is great marketing for Jason Singh
    by now, no advertising on his part is required. Every thing sit aside here is hoping that the company is run with the highest integrity and professionalism as this industry needs it.
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