Mortgage brokers will have another bank to add to their lender portfolio, as B2B Trust announced that will become a Schedule I bank on July 7.
Pending regulatory approval, B2B Trust, the broker arm of Laurentian Bank, will become B2B Bank – a Schedule I Canadian bank dedicated to better serving the needs of mortgage brokers, according to its website.
According to some brokers, the transition looks as if it will be seamless.
“I don’t think it’s going to affect us a whole lot,” said Leslie Penney, VP, business development at APlus Mortgage Group/Mortgage Alliance in St. John’s, Nlfd. “ I spoke about this with a contact at Laurentian and they told me it’s going to be a seamless transition as B2B Bank will be offering mortgage products after the transition takes place. It appears that Laurentian will remained focused on the Quebec market while allowing B2B to growth their market across the country.”
Penney also said that the addition of another bank into brokers’ lender mix can only be a good thing. “Along with the recently introduced accounting rules for banks, should give them a little more flexibility in terms of what it can offer clients with maybe a few extra perks for us to offer our clients,” he told MortgageBrokerNews. “Who knows, maybe once they get everything straightened out we may see some competitive advantages come from them in the way of new products or minor tweaks to current products."
In 2011, B2B saw the value of its mortgage loans for fiscal 2011 shoot up six per cent compar, at the same time it made an aggressive push to sell HELOCs through the broker channel.
“May was the single best month in HELOC sales ever, representing a combination of new purchases and HELOCs on existing mortgages” Mark Zochowski, VP of business development at B2B, told MortgageBrokerNews.ca, pointing to a number of factors driving that growth. Chief among them, he said, is the flexibility of the offering and the collective impact of lender advertising campaigns hawking HELOCs.