Email highlights the challenges facing Radius

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Radius Financial – the former myNext – is facing some challenges in its bid to win over brokers outside the Pacific Mortgage family, specifically, approval from one of the industry’s largest broker networks.

“They haven’t yet been vetted through our screening protocol,” Cameron Strong, CFO and board chair for Invis and Mortgage Intelligence, told “For the client, we have to ensure we do our due diligence with all lenders. It is a rigorous process that can take months.”

The comments follow leak of an email apparently from an MI regional manager and reminding MI brokers (its “Independent Contractors”) that Radius had yet to win that sanction from head office.

“Note that Radius Financial is MyNext Mortgage, and Mortgage Intelligence has not accepted Radius Financial as an approved lender …,” reads the email sent Monday. That message was sent out without head office approval, said Strong.

The letter itself follows on the heels of an email sent to MI brokers last month soliciting their business. It is unclear what if any formal application for Invis/MI approval Radius has made.

The rebranded myNext has already enjoyed some success in attracting broker deals from outside the and Mortgage Architect networks since the June announcement that it would begin to do business with select brokers from across the broker channel.

The move was in part a response to the departure of lenders Macquarie and Concentra.

Despite the successes, some brokers have expressed concerns about sending deals to a lender once exclusively associated with competing broker networks.

That may be short-sighted, suggested Pacific’s new CEO Ron Swift.

“I want our industry to grow,” he told, responding to the leaked email. “In order to grow, I believe we need to provide mortgage professionals with more tools to compete. To me, one of the greatest tools we can provide is access to funding.

“Yes, I do have a brokerage company that does also compete in this space, but let’s be honest, compared to all of the other lenders in our space who have their own consumer-direct origination channels are we really the competition?”


  • Paul Sidhu on 2011-12-08 5:36:06 AM

    I regularly use Radius Financial. They are quick on underwriting, offer top compensation and are quite thorough in their underwriting processes. I don't see why anyone wouldn't use them.

  • David Larock on 2011-12-08 6:05:28 AM

    Agree with Ron on this one. When Radius starts offering commissions to your referral sources then you've got something to complain about. Otherwise, why not be happy you've got one more lender competing for yout client's business?

  • James Hadzinikolaou on 2011-12-08 6:32:23 AM

    I have used Radius many times and they are fast , efficient and reliable, clients i've put with Radius are also pleased.

  • Brian Nason on 2011-12-08 8:05:30 AM

    Not sure why it takes months for a Brokerage to due their due diligence?? Great lender with great rates....your customers and agents are missing out on a great thing!

  • Sam Migliaccio on 2011-12-08 8:47:04 AM

    Hmm? Radius is having challenges? That's interesting? I just spoke with one of the underwriters who told me they are the busiest they have been in months?

  • Ottawa Broker on 2011-12-08 11:06:38 AM

    I agree, a brokerage should do their due diligence on a lender. How long will they be around, what are their back end fee's to clients, if any, what are their penalty clauses, where do they get their funds, who owns the lender, what are their privacy standards? Does the brokerage division have access to the mortgage information that comes in from agents/brokers not a part of the Pacific Mortgage family? There are numerous things to take into consideration besides low rates and fast turn around time. I feel there are some serious questions that need to be naswered and put in print by this lender loing before I would consider using them. I am assuming Invis/MI are going through the same questions.

  • Scott.M on 2011-12-08 12:03:42 PM

    This is Bob Ord written all over it! He is trying to tell 1500 brokers what to do, because he has personal issue with Radius. Grow up Bob!

  • tony singh on 2011-12-08 2:18:58 PM

    I dont understand why anyone would use radius financial as it is owned by a competitor. and Ma know have access to your clients and refferal sources,this is something only somebody would use if they belonged to or ma not from an outside brokerage. What competitive rates are we talking about all they have is a five year fixed.

  • Jonathan on 2011-12-08 7:30:39 PM

    So now they are going to tell brokers who they can and who they can"t use? This is so stupid. I am glad that I am not working for these guys. I work for Centum and they dont tell me who to use or who not to use! My friend at DLC has used Radius and very happy with the service and pricing.

  • GTA Broker on 2011-12-09 1:36:46 AM

    Interestingly enough, the people who require "Due Diligence" are the ones supporting the biggest offenders with the largest BRANCH networks in the country! No monoline lender will risk their business by feeding another broker your clients. But hey, if you think it’s a really big problem then keep sending your clients in to the branch for sign up.

  • Jim on 2011-12-09 2:58:15 AM

    A broker doing a due diligence on a Lender? Us brokers can be so stupid some time! we are going to make due diligence on people who help us pay our bills and make a living! Yes good luck with that. So next time Canadiana, Moncana, MCAP or another lender wants to allow you use them, ask for their Financial Statement! that will go well.

  • Ron Butler on 2011-12-09 4:52:35 AM

    I think everyone involved understands this is a political matter based on past events and relationships.

    As long as MI/Invis agents and brokers are okay with it, why should anyone else care?

    We can all form our own opinions about dealing with Radius since most of us know the history and understand the issues.

    As a side note; I don't think everyone in Canada knows who Ottawa Broker is, but I do know whoever he, is he is entitled to his opinion.

  • Mark on 2011-12-09 5:18:35 AM

    Ottawa Broker is right, don’t take it personal! Who in this day and age does not perform detailed due diligence, clients want to know, why would you as a Broker not want to know the background details? The supporting comments from the MA members are expected, they have a vested interest in the results of the company you could be sending your deals to, either directly or indirectly. At the end of the day you are going to do what's best for your clients, because ultimately that’s what it’s all about, right? If that technically means sending them to a competitor (or a bank) then that's your decision, from a pure business perspective it does not make sense, there are far too many viable, value added options available

  • Mac on 2011-12-09 6:19:07 AM

    If every broker made a decision to send clients to certain lenders based on that lenders relationships with other channels then the lender list would be very short and you would not be a broker. CIBC used to or still does own the Mortgage Centre. Most Mortgage Centre locations are huge supporters of FirstLine (I am aware of at least one Mortgage Centre location where they mandate 50% of their business must go to FLM), and up until 6 months ago they were the largest Broker lender so clearly many other Brokers dont know about and dont care about the CIBC relationship. AGF is doing great things for the Verico network yet AGF is also a large supporter of Primerica and we all know about Primerica. At one point, and it still may be this way, Bridgewater was a B lending option for RBC. RBC is our largest competitor.

    Ron Swift makes a valid point too. Most of the Broker Channel lenders are our biggest competitor in the end. Scotia is on record of saying they are buying business for future retention. TD is doing little to support the channel yet continues to be one of the largest lenders, ING is heading down that same path by the looks of things, and National Bank is out there offering commissions to realtors. Enough said.

    At the end of the day, yes due diligence is good, but making decisions about who your licensees can send business to based on previous relationships is plain goofy. Do what is right for you and right for your customers, period!

  • Janet on 2011-12-09 2:59:53 AM

    @OttawaBroker. You make yourself look stupid by attacking this company all the time! you need to grow up. Everyone in the industry knows who you are and why you are making comments like this!

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