Brokers react to DLC’s Marlborough Stirling purchase

Brokers react to DLC’s Marlborough Stirling purchase

Brokers react to DLC’s Marlborough Stirling purchase MorWEB is poised to become a much bigger player in the mortgage game; how do brokers – both DLC and others – feel about the purchase?

“It’s not going to be anything but a good thing for brokers,” Dustan Woodhouse, a broker with Dominion Lending Centres Canadian Mortgage Experts, told MortgageBrokerNews.ca. “That’s a platform that hasn’t seen a lot of action for brokers. There’s no question it’s going to be a major player in the space.”

Dominion Lending Centres announced the pending purchase of Marlborough Stirling early Wednesday.

The reported $5.5 million deal obviously includes MorWEB, the country’s second-largest mortgage processing platform. MorWEB is still a relatively small player – accounting for less than 10% of the market -- compared to its main competitor, D+H’s Expert.

But with the country’s largest network behind it, Marlborough is certainly set to see its share increase.

The announcement was another major one for Dominion Lending Centres in a year that saw it acquire major competitor Mortgage Architects.

Adding those agents to the already impressive numbers under Mortgage Centre’s banner – not to mention DLC’s own agents and brokers – along with this most recent purchase, has some questioning whether DLC is becoming too influential in the industry.

“It’s never a good thing when any one entity has too much concentrated power in any industry. It doesn’t affect me either way; I’m an independent under the Coalition CIMBC as an independent,” John Bargis, vice president of Mortgage Edge, told MBN.

Still, Bargis was quick to give credit where it was due. He did, however, question how lenders will react to the purchase.

“At the risk of sound like sour grapes, I don’t believe this is good for the industry in general, but good for them if they can successfully monetize the system and drive revenue for the investors," he said. “I think that the lenders certainly have to be scratching their heads on this one and wondering what this play has in store for them. Increased technology investment perhaps at a time that the industry is in a state of flux might be tough to swallow.”

For their part, some non-DLC brokers have already voiced their apprehension about sending deals through a company owned by a competitor.

Despite this, there’s no question more deals will filter through MorWEB than ever before.

“Between DLC, MCC, and Mortgage Architects we’re talking 5,000 brokers,” Woodhouse said. “At the end of the day, what does the platform look like? If it’s more user-friendly it’ll get used.”
 
1 Comments
  • USE THE FORCE 2016-12-16 3:18:36 PM
    Congrats to DLC for this acquisition! This is what the industry (GALAXY) needs on the technology origination front. Competition usually is followed by innovation. For the longest time, D+H Expert (THE EVIL EMPIRE) has not innovated and its the take it or leave it platform that many brokers loathed. Expert's strength was its long lender list, broker reluctance to learn and use MorWEB, poor new agent system training that inevitably lead to Expert system by osmosis, and D+H’s power over smaller lenders that it can shaft if those lenders do anything that they don’t like. These factors contribute and perpetuate the cycle that made Expert the monopoly it is today (DARTH VADER & THE DEATH STAR). MorWEB can easily gain market share now that it has DLC (LEADER OF THE RESISTANCE) capable of mounting offensive action against the choke hold and potential destruction from (DARTH VADER & HIS DEATH STAR)

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    I'm sure Gary already has plans to monetize this investment and drive ROI. I'm going to say it anyways. My advice to Gary is focus on implementation. You can have the best system (LIGHT SABER AND STARFIGHTER) for your franchises and agents (JEDI), but if they don’t use it (THE FORCE), then it’s not going to matter. They will continued to be seduced by the POWER OF THE DARK SIDE.

    JEDI...it really is upto you to use THE FORCE to break away and submit deals through MorWEB. Change is hard and can easily take a back seat to convenience and osmosis leading back to the DARKSIDE. But victory and the FORCE is with you and within you to overcome. MorWEB is easy to learn and use.

    Do the math...there are approx 12000 brokers in Cda. CAAMP (TRADE FEDERATION) will tell you 16000 but real producing brokers is more like 12k. DLC and the RESISTANCE can easily make a big dent in the EVIL EMPIRE’S monopoly in a short time order.

    Innovation, freedom, and peace is ahead for the GALAXY. Victory is yours!!

    (the above is opinion of the writer only and is in no way promoting the up coming Starwars movie...like you need to be convinced)
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