With FirstLine being pulled from the broker channel, expect MCC and HLC brokers to impress upon their clients that they alone have access to CIBC.
“It is an advantage,” Christopher Bisson, of The Mortgage Centre Complementary Real Estate Services Inc. in Guelph, Ont., told MortgageBrokerNews.ca, speaking to the demise of FirstLine and the marketing boost likely to accrue to MCC brokers. “Yes, I would point it out to prospective clients that apart from CIBC, and HLC, we are the only ones who can offer CIBC products.”
While brokrs have anticipated the end of the line for FirstLine for several months now, that formal closure will come at the end of the month.
The move leaves MCC brokers the only source of CIBC products apart from Home Loans Canada and CIBC itself.
Starting August 1, MCC will be the only broker offering products from three of Canada’s five major banks. Most brokers only offer products from two banks. Presumably that helps sell to clients who can’t be moved to mono-lines and other lesser-known broker channel names.
Still, Bisson believes the absence of FirstLine will have little impact on the broker community.
“Personally, I do not do much business with FirstLine,” he said. “I think the absence of FLM will not make a big difference for many brokers.”
Not all MCC brokers see a distinct advantage over competitors as springing up from FirstLine’s shutdown. They point to its distinct identity from CIBC and the fact many brokers never really sold its mortgages as CIBC related.
“FirstLine was always operated independent of CIBC,” said James Robinson, of The Mortgage Centre in Toronto. ”In fact, they said they were competing with CIBC.”
However, the loss of FLM might be felt by non-MCC brokers.
“It’s not good for our industry to lose a funding source like CIBC, with its access to deposits, covered bonds, MBS, CMB giving it the ability to fund $15 billion per year,” Alex Haditaghi, founder of Pacific Mortgage told MortgageBroikerNews.ca earlier this year.