“This will for sure make Radius
more competitive,” Lori Conroy of Mortgage Architects
told MortgageBrokerNews.ca. “I’m hoping to submit some deals to them in the near future.”
The specific program Conroy mentioned is prime – 0.70 per cent adjustable rate mortgage (ARM), a high ratio standard compensation product. The lender has also added a conventional mortgage line, at the same time adding 18 more players to its team in the last 12 months.
That beefier presence, included expanded underwriting, is expected to facilitate quicker turnaround times and will likely strengthen the lender’s already impressive growth in the broker channel.
The lender saw submission volumes rise some 300 per cent last year compared to 2011, the kind of growth most of its competitors have struggled to win for themselves. The acceleration also comes after Radius
opened up itself to broker deals outside the Mortgage Architects
Pacific Mortgage Group CEO Ron Swift
sat down with MortgageBrokerNews.ca for a quick Q&A:
MBN: How do these new products set you apart from the competition?
Swift: The introduction of our new 5-year ARM and the removal of the borrower having to pay the mortgage insurance premium on owner-occupied conventional deals was not done to set us apart from the competition, but to make us more competitive with our competitors. Increased regulations, mortgage insurer rule changes and investor demands make it very difficult for any “A” lender to introduce truly new products to the market. What does set us apart of our competitors is our total offering; competitive products for both high ratio and conventional deals, tools for the broker to manage their clients better, rewards for productive and efficient brokers and great service with some of the best people in the industry.
MBN: Was the addition of these due to broker feedback?
Swift: Absolutely. Brokers are our true customers and we listen to what our customers want.
MBN: Why was the variable-rate product added at this specific time?
Swift: Timing. We just finalized a new funding arrangement to allow us to competitively offer this new product. Having said that, based on the response we have already received from the brokerage community it looks like the launch of our P-0.70% high ratio promotion timing is perfect.
Broker reviews for a new addition to one monoline’s offerings are already coming in, with many anticipating its even-stronger growth as a result.