DLC nixes sponsorship of O'Leary at CAAMP

DLC nixes sponsorship of O'Leary at CAAMP

DLC nixes sponsorship of O 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 (?)”
  • Janelle Bentz 2012-11-21 4:21:01 AM
    Absolutely Gary! Great stand!
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  • Joe the broker 2012-11-21 4:22:01 AM
    Glad to see DLC doing this and CAAMP should be cancelling his appearance.
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  • Dave Trithart 2012-11-21 4:22:56 AM
    Well done and well said Gary. I have to say when I first heard of the O'Leary plan, I was seriously questioning CAAMP's motivation. I am surprised that CAAMP did not address this themselves. Hopefully they have our best interests in mind and not the money?
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