A pilot group of Invis/Mortgage Intelligence brokers has already won $50 m in deals for the company’s new Partner Mortgage – only three weeks after the product’s launch.
“The response has been phenomenal,” Cameron Strong, CFO and board chair for Invis and Mortgage Intelligence, told MortgageBrokerNews.ca. “To have issued that much in commitments in so short a time demonstrates the success of the product, which offers a leading rate for clients but is also focused on helping brokers with the retention of those clients and rewards them for doing it.”
Invis/MI introduced the private label mortgage at last month’s CAAMP forum, and while MCAP’s parent company will do the underwriting, Strong hasn’t yet revealed his “blue-chip” funders.
That hasn’t kept a select group of 100 brokers from successfully selling it to clients, using a 3.14 per cent interest rate on a five-year fixed.
That initial performance means the company will move as early as Q1 to offer it to mortgage professionals across its twin networks. It will remain exclusive to the Invis/MI family, coming at a time when super brokers face increasing competition to retain and grow their broker numbers.
The product’s penetration should also be helped along by its compensation structure, said Strong.
While brokers under the test pilot drew 105 basis points in commission on their five-year fixed deals, they will also earn renewal fees of up to 70 per cent of the prevailing compensation, he said.
A growing number of brokers are now focused on using trailer and renewal fees to even out revenue streams and, ultimately, improve the value of their portfolios with an eye to selling them at retirement.
That has already started to happen, although those transactions remain largely dependent on the size of the book itself.