ING's broker days numbered, says vet

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Brokers clinging to the notion that it will be business as usual with a Scotia-owned ING are facing certain disappointment because the popular discount banking brand is bound to disappear in Canada after 18 month, according to a seasoned  mortgage professional.

Scotia actually said it in their press release,” said Ron Butler, of Verico- Butler Mortgage. “The license to use the ING’s brand is only for 18 months... after that we’ll see the absorption of ING’s brokerage group.”

Many brokers had earlier opined that Scotia’s announced intention to purchase ING Direct Canada would be a good thing for the broker channel. They saw the larger bank putting the weight of its capital base behind ING’s mortgage operation.

“With the country’s third largest bank behind it, ING will now have more capital available to fund mortgages,” said Dan Eisner, CEO of True North Mortgages. “This could potentially be a good thing for brokers.”

But, Butler argues the opposite is bound to happen.

“Any loss of a good lender is a bad thing for the channel,” he said.

Scotia is only interested in ING’s very successful Internet and direct-phone budget banking operation,” Butler said. “Scotia will use ING’s contact centres to sell a very different product offering to a new set of customers.”

He asserts that Scotia has no intention of keeping ING’s existing channel links because of overlapping costs.

“There’s a huge overlap in both bank’s mortgage brokerage group,” said Butler. “Why would any bank want to keep two similar groups? What I see is that ING’s mortgage brokerage group will be absorbed into SMA.”

If the sale goes through, Butler expects to see integration between the two lenders occurring within the next 12 months. But ultimately, he said, the ING brand, at least in Canada has only 18 months to go.


  • John Dearin RPA,. AMP. on 2012-09-05 5:44:36 AM

    well, for the first time, I have to completely disagree with Ron Butler. The 18 months is the time frame to drop the ING name and logo. I don't read it the same as Ron. Most ING customers do not want to deal with Scotia Bank, keeping it at arms lenght will allow ING to continue under another name.

    Having said that, I Can see the logic behind Ron's comments. I guess this conversation will be rekindled in March 2014?

  • Lorne Rackel on 2012-09-05 6:06:14 AM

    It is very rare that when one company purchases another that both brand names survive. The company that is purchased is very likely to lose it's name over the short term. There is usually an overlap of customers or products. They integrate what they want and close or sell the remaining units.

  • mtg man on 2012-09-05 10:49:58 AM

    I have to disagree with Ron. ING has a very profitable model, including the broker channel. I can't see Scotia removing the brokers as this adds to their bottom line. I am more worried for the monoline lenders that ING currently supports.

  • Jason on 2012-09-05 9:05:27 PM

    With all due respect to hear from two mortgage people what is going to happen to ING without actually knowing anything at all is laughable. I would like to know the inside sources that either Ron or Dan know that no one else does in the industry. at this point it is simply just a guess and when people look at this site they take all of this info literally and this is how gossip starts.... until we know any different it is business as usual.

  • chris on 2012-09-06 3:22:09 AM

    Think...Maple Trust....Nothing wrong with Scotia, they are one of my favorite lenders, but I have a personal BRM, when I dealt with just the warehouse underwriting dept I hated them....but I wasn't a big fan of ING products or services either....Scotia will do what is best for their bottom line so whatever will be will be, and the good brokers will change and adapt as required....nothing we can do about it other than deal with the lenders we approve of

  • Audrey Wamboldt on 2012-09-06 3:48:57 AM

    Anybody remember Maple Trust? When Scotia bought them- we lost a broker lender, and they contacted all the broker clients to say you no longer have a broker- we are now your lender. Their days are probably numbered.

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