National Bank is effectively overhauling its status and compensation programs for brokers in an effort to better promote efficiency but also as a way of to ensure continued strategically controlled growth through the broker channel.
“We are committed to the broker channel and we look forward to doing business with brokers going forward, the brokers have been very supportive of us” Mark Squire, director of Mortgage Broker Services at National Bank told MortgageBrokerNews.ca.
With that in mind, National Bank has made a number of changes to its broker services including:
Volume Bonus and Efficiency Bonus
To continue the evolution of efficient business over strictly volume, a change will be introduced in fiscal 2014 that will further reward efficient brokers. “We believe that efficiency needs to overtake the volume and we believe we will see more of that over the coming years," said Squire. "We are the ones leading that charge by our actions to put more emphasis on efficiency.”
• Efficiency Bonuses will be doubled in all tiers, while volume bonus will be reduced to 10 bps.
• Volume Bonus will be changed to 10 bps for all brokers no matter how much volume is funded
• Volume Bonus commission will be the same for all independent brokers or ones with a brokerage network.
Removal of the 30- and 60-day Quick Close
“National Bank Mortgage Broker Services will be eliminating the 30- and 60-day rate hold as a standard rate offering effective November 1, 2013,” the statement reads. “This change was required to help support both our brokers service expectations, but to also support our operational requirements in providing exceptional service to our broker partners.”
Red Carpet Program
National Bank introduced their status program 5 years ago and since that time have had a tremendous amount of success with the program. Squire stated “we wanted to simplify the program but keep some of the features of the program that many of our status brokers have enjoyed such as our Trip of a Lifetime award” The program has been streamlined into fewer tiers and options but still providing a competitive advantage for status brokers.
The bank hopes to continue making inroads with brokers and suggests the Red Carpet Program will continue to aid in that effort.
“We’ve become a significant lender within the broker community in the last five year,” Squire said. “We continue to appreciate the support that our broker partners have provided to us, and the confidence they have in us to provide product and services to their clients.”