MCC brokers put CIBC under the looking glass

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CIBC, let this serve as notice: MCC brokers are putting every move you make under a magnifying glass in an effort to determine whether you intend to remain in the broker channel.

“Yes, there have been lots of talks and rumours that CIBC wants to get rid of The Mortgage Centre and get out of the mortgage channel,” said Derrick Foster, principal broker at MCC- HCC Mortgages. While “nothing has been said or written, brokers are watching the bank’s moves very closely.”

Some of those moves are around rate and product, competitive rates and new product announcement seen as indications of the bank`s intention to retain MCC and HLC.

“Offering MCC brokers access to some unique and exclusive products and lower rates would certainly give us some comfort,” the Windsor-based Foster told MortgageBrokerNews.ca.

CIBC was in fact looking to shed itself of MCC and HLC as part of a failed sale of FirstLine, say sources close to negotiations. That appears to have changed with the bank`s decision to wind down the mono-line`s operations July 31.

Foster is quick to draw differences between the plight of FirstLine and that possible for MCC brokerages.

“We’re not in the same position as FirstLine,” he said. “We’re mortgage brokers, so it’s not like CIBC closes down MCC and we’re out of a job. We have the ability to align with somebody else or even go independent.”

Still, that’s very much hypothetical now, with Foster reasserting confidence in MCC’s leadership.

“MCC people are smart people,” he told MortgageBrokerNews.ca on Thursday.”If they are going to do anything they’ll do it in a way that will not jeopardize the brand.”

 

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