MCAP is planning to hang onto the “vast majority” of ResMor’s residential mortgage team – its VP of communications suggesting that should give the lender an in with brokers loyal to the departing channel member.
“MCAP has agreed to retain the vast majority of ResMor’s residential mortgage operation employees, including its originations and servicing teams,” Jack Shapiro, VP Marketing & Communications at MCAP, told MortgageBrokerNews.ca. That staff has built relationships with hundreds of broker clients – relationships that should transfer over to MCAP, he argued Friday.
On Thursday, MCAP confirmed rumours that it had entered into an agreement to acquire the residential mortgage operations and certain related assets of ResMor Trust Company, aiming for a completion date sometime in the first quarter of 2012. It remains subject to regulatory approval and other customary closing conditions.
MCAP is describing the ResMor mortgage book as “a perfect fit” with its long-term growth strategy, representing a nearly $6 billion addition to its servicing portfolio.
The lender is also aiming to expand its reach into the broker community, ostensibly creating connections with brokers who may not have used MCAP. That would also help its retention efforts with ResMor’s existing mortgage clients.
While ResMor will continue to originate mortgages under its own name until the transaction moves to a close, brokers are already lamenting the loss of another channel lender following the departure of both Macquarie and Concentra earlier this year.
“This is the fourth lender we have lost this year!” wrote one broker, commenting on MortgageBrokerNews.ca Thursday. “It’s a good deal for MCAP because they are getting closer to First National.”
Still, MCAP may have its work cut out for it in wooing all of ResMor’s brokers, some suggesting it will have to continue with some of the products ResMor brought to the table.
“I hope MCAP doesn’t change a thing with ResMor!” wrote another MortgageBrokerNews.ca reader.