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 MortgageBrokerNews.ca. “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 MortgageBrokers.com 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 MortgageBrokerNews.ca, 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?”