Dominion Lending Centres
has jettisoned plans to sponsor Kevin O’Leary’s appearance at CAAMP
’s upcoming Mortgage Forum, its president citing the Dragon’s new mortgage business and the direct competition posed to brokers.
“Why would I spend $50K to sponsor any competitor, especially one who has little respect and appreciation for the commitment, expertise and great work that mortgage professionals do," said Gary Mauris
Monday and on the heels of last week’s MortgageBrokerNews.ca story outlining O’Leary’s model. “We have notified CAAMP
that we will not be participating in the sponsorship of Mr. O'Leary and have cancelled the meet-and-greet session we had arranged for our agents.
"I believe CAAMP
should cancel his speaking contract altogether as they tell me when they signed Mr. O'Leary to speak he made no mention of getting into the mortgage business."
The pullout -- DLC
will continue to sponsor the event, but a different session -- is arguably the most strident objection to O’Leary’s planned foray into Ontario’s faltering mortgage industry. His intentions to originate “O’Leary mortgages” outside the broker channel have nonetheless riled brokers across the country.
O'Leary will, as MortgageBrokerNews reported Thursday, use one of the channel’s biggest mortgage servicing companies to underwrite and service those mortgages.
As late as last week the head of that company told MortgageBrokerNews.ca that negotiations remain ongoing.
Still, broker reaction to the venture capitalist’s plans to enter the market, leveraging his notoriety and a veritable blitzkrieg of marketing and advertising, has been swift.
O’Leary’s suggestion that he ultimately aims to work with brokers at some point haven’t lowered the volume on that reaction.
“I wish Kevin the best of luck,” said Mauris, “but I find the concept of sponsoring a session that competes in our industry while bypassing the broker channel altogether to be a disservice to our industry members who feed their families via the broker channel.
“I find it questionable that now there is pressure to really understand how Kevin's model will work, he states that he will be working with brokers in the future (?)”