MortgageBrokerNews.ca spoke with the president of O’Leary Ventures who explained the decision behind shutting the doors on O’Leary Mortgages.
“We’re always – and Kevin is always – evaluating a number of different opportunities to see where we can add the most value in financial services as well as elsewhere and we regularly review where we are and we are always looking to see where we can create the most value for consumers and also get the returns that we’re looking for,” Alex Kenjeev, president of O’Leary Ventures told MortgageBrokerNews.ca. “As part of that type of review we made the decision that our capital and efforts would be better spent on other opportunities.”
When asked what, specifically, came out in the review that led to the decision to pull the plug, Kenjeev was guarded.
“We’re a private company so we don’t comment on those types of specifics,” he said.
Though it’s clear the business wasn’t generating as much profit as initially hoped, mortgage brokers offered their own take following the news, with many wondering if O’Leary’s pulling out was due to his uncertainty about the Canadian housing market.
“Do you think it’s possible -- don't shoot me for throwing this out there but --- perhaps he sees the housing market in Canada is too risky?” one MortgageBrokerNews.ca commenter, Faye Drope of Verico
Sand Dollar Mortgage, said. “I'm just saying maybe there is another angle.”
And then there were some who questioned just how involved Kevin O’Leary really was in his Canadian mortgage venture.
“Why does everyone believe he had his own money in this venture? What if he licensed his name for a share of the profits [and] there were none,” Ron Butler
, a broker with Verico
Butler Mortgage, said. “I doubt he ever spent more than two or three full days working on the business the whole course of the time.”
O'Leary Mortgages surrenders FSCO license
Big things on the horizon for O'Leary Mortgages?