Sources: O'Leary to create white label

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Sources are telling MortgageBrokerNews.ca more about Kevin O’leary’s foray into the industry, suggesting he'll brand a white-label product offered by a leading mortgage servicing company then use his name and an advertising campaign to generate leads --  leads meant to bypass brokers.

An official announcement is expected to come at CAAMP’s Mortgage Forum in Vancouver next week, said a source with inside knowledge of the deal, pointing to O’Leary’s scheduled address, which itself has raised eyebrows given his mortgage business may compete with brokers.

An associate of O'Leary now tells MortgageBrokerNews.ca that the announcement won't come at the event, and before hundreds of brokers, many of hostile to the venture.

Still, sources, speaking on condition of anonymity, are fleshing out more details about the Dragon's business model, which will see him front a series of commercials, appearances and press releases meant to capitalize on his notoriety.

"The ads will feature him, most certainly, and there will be a 1-800 number, I understand, that connects the leads," one source told MortgageBrokerNews.ca. "Brokers won't be involved and I understand that the fixed mortgages being offered will be serviced and (processed) through that company, which normally relies on brokers to generate business."

Sources are suggesting the rates attached to the white label will compete with buydown rates already in the marketplace. The venture capitalist will reportedly take a lower cut to facilitate the reduction.

Another source, within the mortgage servicing company, told MortgageBrokerNews.ca that the proposed deal remains in negotiations. Still, some brokers are scratching their heads as to why O'Leary will address the CAAMP conference if brokers aren't directly involved in the venture.

 

  • Rob Campbell | therobcampbell.com on 16/11/2012 6:17:54 AM

    I hope everyone enjoys his presentation at CAAMP knowing he's going to cut out "the middleman" in all of us.
    That lender obviously feels that Mr. Wonderful is a better avenue than us Brokers.

  • anonymous on 16/11/2012 6:42:58 AM

    Lenders/Service providers are in business to make money just like brokers. It doesn't matter where the business comes from as long as it's coming in. Brokers send business to banks, who we know also bypass the middle person. Why would anyone suggest cutting off this lender who is trying to make money like everyone else?

  • Joe the broker on 16/11/2012 7:19:29 AM

    What a joke. And he's talking bullcrap at CAAMP? The crowd should throw eggs at his head. If CAAMP had any balls they would cancel his appearance. Good to see my fees are being used to pay for this idiot to speak nonsense. More wasted money .

  • Mikel on 16/11/2012 7:27:08 AM

    Like Donald Trump, so too is Kevin O'Leary losing his relevance. Next, he'll be setting up lemonade stand beside a 5 year-old.

  • Derek Rowley, RMA on 16/11/2012 8:18:13 AM

    To Joe The Broker - you have my vote - as for anonymous - why the ficticious name pal. Good brokers are proud to dispaly whom they really are.

    As the old saying goes, "when you deal with snakes, you will get bitten"

    The best to all

    Derek Rowley

  • Ron Richards on 16/11/2012 8:35:49 AM

    Why do we want a vulture capitalist involved in the industry again?

  • Faye Drope on 16/11/2012 9:43:30 AM

    Some people like him some people dont. I do not. I am attending CAAMP but not to see him. check out his website it is already there.
    http://www.kevinoleary.com/

    He scares me about as much as "Skippy" at the Mortgage Kios at Superstore.

  • anonymous on 16/11/2012 10:28:46 AM

    Derek, yes good brokers are proud to display who they really are, which is why you're voting on side withe Joe The Broker.

  • Michael Lloyd on 16/11/2012 1:53:49 PM

    You people sure get in a tizzy easily...a well known name that will get more publicity showing the public there are other alternatives than just walking in the branch to get their next mortgage and you are upset? We have 25% market share people!!! We need to do more and think outside the box! If Mr. O'Leary can move 1% more from the Bank side of the share, I am all for it. I won't be losing any clients to him and we may all gain from this...I'll be interested to hear him at CAAMP.

  • Ron Price / DLC Fergus on 17/11/2012 1:37:16 AM

    Will someone please tell Kevin that if his new mortgage product is as good as they think it is, then why wouldn't he partner with our mortgage brokerage industry. Think big Kevin. Don't miss the huge opportunity to source biz from us too, not just direct to consumer.

  • Sua Truong - Vietnamese Mortgage Advisor on 17/11/2012 4:17:16 AM

    Michael & Ron nailed it. Kevin should think BIG! I welcome anyone to the game. I think Kevin would get along well with Don ;) As Mike has pointed it out, it will only make the industry more well known than it currently is. If we can co-broke and help each other across our own super brokerages, what difference would it be for him to join our rank? I think Boris wouldn't bring Mr. O'Leary to CAAMP without a really good reason. If not, just smile and move on with business. Nothing to see folks.

  • Rhéau Séguin Mortgage intelligence on 17/11/2012 6:38:07 AM

    if kevin as the nerves of speaking at the conferance in vancouver in front of us he's got to have someting under is hat,dont underestemate the guy,he's a very smart guy,I still dont beleive that he should get in the mortgage biseness but.....

  • Bill Jones on 17/11/2012 12:45:18 PM

    I agree with Rhéau - O'Leary can't be so brash as to speak at our conference and more or less tell us we're irrelevant. That would be SOOOO arrogant that I kinda like it. He's getting some good publicity through these rumours - maybe that's his angle. We shall see.....

  • Nick Hamblin on 16/11/2012 5:28:53 AM

    Kevin wants to by pass brokers , Brokers need to by pass who ever is doing the servicing of his white label.!!! Oh and CAAMP needs to give him the boot , he is beyond arrogant and lucky for us his brand is not as strong as he thinks as everyone knows Kevin is out for Kevin and no one else !! Shark / Dragon whatever neither has a great connotation and people should be prepared to be bitten or burned !

  • Jim A. - Toronto and Durham Broker on 21/11/2012 5:54:14 AM

    I always say...do what you do best. Kevin does the Dragon's Den and his O'Leary funds quite well. But he does know mortgages so I suggest to keven to do what he does best and it is not mortgages.

  • Howie Jays on 16/11/2012 5:37:04 AM

    I don't think anyone will trust O'leary anyway the guy looks like a snake, your not going to get the same service from O'leary mortgages that you do with a broker. I find it very disrespectful for this person to even be presenting at the CAAMP conference.

  • Anonymous on 20/11/2012 3:36:17 AM

    This is exactly why I canceled my CAAMP membership 2 yrs ago. They have not and will not do anything to benefit the broker community. I wouldn't worry too much about O'Leary...he is full of hot air.

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