Yet another channel lender is beefing up its compensation for brokers as the market slows and the race to win ING brokers heats up.
First National is joining MCAP in a 10 bps bump-up on all insured mortgages, effectively cancelling its 5 bps chop from late last summer.
The move is likely to help the lender better attract any brokers now searching for a new place to send deals that would normally have gone to ING Direct. It, of course, is preparing to leave the channel effective next month.
Still, First Nat isn't the only lender with its eye on the prize. As MortgageBrokerNews.ca reported last week, that key lender for so many mortgage professionals, MCAP, has introduced a special offer of an additional 10 bps on all 5-, 7- and 10-year fixed mortgages. That also applies to the 5-year VIP M-Power variable and those Quick Close specials that are high-ratio and fully insured.
In addition, brokers are able to earn MPoints over and above this special promotion, which can go toward business development and “creating an Optimal Customer Experience for their clientele,” said MCAP's GinoTieri.
Still, winning a bigger chunk of the pie doesn't change the face that the pie is shrinking, said one broker Monday, suggesting it ultimately falls to broker channel lenders to help brokers win more of the fewer of number of new originations expected during the first half of 2013.
He, among others, point to the need for greater consumer marketing in the face of the media blitz of Canada's big banks.