Lender grows share and earns support across channel

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A leading lender is enjoying significant growth and support from the broker networks across Canada following its investment in one of those networks.

We reached out to the other broker networks following the announcement and the message coming from them is that the announcement had actually sparked more interest in B2B as a broker network player, François Desjardins, president and chief executive officer of B2B Bank told MortgageBrokerNews.ca in an exclusive interview,

“The fact that we launched alternative business programs showed we are dedicated to the channel (as a whole),” Desjardinssaid. “Our objective is to send the message that we aren’t going away.”

B2B Bank announced in July it had bought a non-controlling interest in Verico; a move that was well-received by competing networks as the lender reached out and promised to continue to support all organizations in the channel.

Desjardins personally called Verico’s competing networks and intimated a continued dedication to the entire channel, echoing similar sentiments released by Verico brass.

“I want to be very clear that the structure and nature of the relationship between Verico and B2B Bank is merely financial,” John Kelly, chief operating officer for Verico told MortgageBrokerNews.ca following the announcement of the deal. “There is no locked in bias here, and B2B Bank will provide the same competitive mortgage products to all brokers in our industry.

“Similarly, Verico will continue to represent and promote the competitive mortgage and banking products of all of our other lenders.”

B2B Bank currently enjoys four per cent market share and Desjardins believes the bank’s recently launched alternative lending products will go a long way in assuaging broker fears that they are a fly-by-night shop. And brokers have taken note; 25 per cent of B2B’s funded volume has come from four of its recently launched alternative programs, according to Desjardins.

“Where I think we stand out is with specific programs for specific people,” Desjardins said.
  • Ron Butler on 2014-08-08 1:32:50 PM

    I think if a lender has good programs and good rates brokers will use them. Brokers other than MA have used Radius for years. If it is good for the client brokers should not care about any lender affiliation to a brokerage network when they are looking for the best fit for a client.

  • Jake Abramowicz on 2014-08-08 2:35:21 PM

    I doubt there's no bias, since Verico agents get paid on renewal from B2B but others don't. Correct me if I'm wrong on this one?

  • Ron Butler on 2014-08-08 2:51:22 PM

    I don't know about renewal and I never pay attention to so-called renewal payments from any lender because a whole lot can happen in the 5 years and the broker ends up with zero renewal money by some strange twist of fate; but my point was nothing about bias. I don't understand the bias issue? A VERICO guy is going to get easier underwriting? Anyone who thinks that, does not know B2B, so I don't get bias. My point was that if the program and the rate were the best deal available for our clients why would we care if the lender was affiliated with a broker network. If Mortgage Edge operated a MIC that was available to all brokers and they were the best available rate for my client, I would use that MIC, I would not care about the corporate relationship.

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