Major RateHub customer might pull support

Major RateHub customer might pull support

Major RateHub customer might pull support One of RateHub’s largest clients is set to decide today whether it will continue to do business with the popular rate site following the announcement that it is establishing a competing mortgage brokerage.

“We can invest our money in multiple ways and now to say 'do you want to invest it with a company that has murky motives,' maybe we should spend it somewhere else and that’s a better idea,” Dan Eisner, CEO of True North Mortgage said on Thursday’s Canadian Mortgage Hangout TV. “That’s something we’re going to discuss with the board of directors tomorrow.”

Like many brokers in the industry, Eisner views the move as a conflict of interest and worries that the number of leads that come from RateHub.ca will decline along with the quality.

“In my mind you have to choose – there is a door, either it’s opened or closed,” Eisner said. “Either you’re a rate comparison site or you’re a mortgage brokerage (and) you can’t keep that iron wall up.

“It’s one corporation; they’ll decide whichever pays them the best and in the end only one is going to win.”

Eisner’s company is currently seeking legal action against its former employee, James Laird – who has been tapped to manage RateHub’s brokerage --, for allegedly breaching a non-compete clause.

“We’re now weighing our options in terms of our legal options,” Eisner told MortgageBrokerNews.ca earlier this week. “We have retained counsel to pursue our options regarding James’ non-compete clause.”
 
15 Comments
  • J.M. 2014-07-18 11:29:55 AM
    who cares
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  • J.M. 2014-07-18 11:30:30 AM
    Who cares
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  • John Smith 2014-07-18 11:30:35 AM
    Not an easy spot to be in for TNM, considering their business plan includes major investment in both online rate sites plus physical lease and employee costs which must not be very cheap. And now, the #1 rate site that they supported is going to start a brokerage. Previously, the #1 lender they supported (ING) was sold to Scotia and left the market.

    The term Schadenfreude comes to mind.
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