An upstart channel lender has now attracted hundreds of brokers and nearly $200 million in mortgages – that with little more than eight months on the clock and without resorting to bargain-basement pricing.
“We are excited about the brokers we are dealing with and our systems are now working well,” James Clayton, president of MonCana Bank of Canada, told MortgageBrokerNews.ca. “We are looking forward to a strong second half in 2012.”
It may take some effort to better the first half.
Clearing the last of the necessary regulatory hurdles in September, the bank has now “signed up with 625 selected brokers,” he said, “and has funded almost $200 million of mortgages.”
That business has come largely from Alberta and Ontario, through an underwriting office in Toronto. All of it comes via the broker channel.
The performance speaks to the success the bank has had in appealing to brokers, with already established lending partnerships, argue some mortgage professionals.
“You know, clients will always be interested in rates, but what I`m finding is that they are increasingly shopping around and if they’re having to wait too long for an answer from a broker on a commitment, then they have no problems walking into a branch,” Tony Anagnostou, an agent with Dominion Lending Centres Forest City Funding, told MortgageBrokerNews.ca. “But what I’m also finding is that new lenders like MonCana are really coming forward with answers within hours, and that’s helping them to compete with other lenders, even if the brokerage has a dedicated underwriter.”
At its launch, the Calgary-based bank also dangled a 50-basis-point renewal fee – that on top of standard upfront compensation.
The program, along with its speedy underwriting, has helped move the lender beyond rate at a time when rate has often been a weak front for brokers, say industry insiders.