This is not your father’s Lendwise.The re-purposed lender – now focused on full, upfront compensation for brokers – is further opening Merix’s doors to mortgage professionals who’d otherwise have taken deals to competitors, one company exec told MortgageBrokerNews.ca.
“The vast majority of Lendwise business is from originators who have not supported MERIX in the past," said Jason Kay, VP of corporate development and sales. “What Lendwise has done is open up new relationships to Merix that otherwise would not have thought of us. What is interesting is that many broker-owners "who support the MERIX trailer value proposition, have introduced and supported Lendwise to some of their more newer agents.”
Merix is now quantifying that newfound pulling power, based on Lendwise’s shared broker services with Merix and its competitive rates and compensation, up to 130 bps up front.
In August, “we put a strong focus on Lendwise and saw a 244 per cent increase in volume month over month,” said Kay.
Merix originally launched Lendwise, once called the “lender of last resort” by some brokers, in 2010 as a rock-bottom rate provider for brokers fighting to keep clients. That tool – specifically, access to the lowest of low rates – came at a cost; namely, compensation.
Lendwise still offers buy-down options, although its mainstream rates, offering full compensation, are the real attraction for many brokers, said one analyst.
Still, Merix is hoping any new brokers it attracts will eventually find their way to Merix and its trailer fees.
“Our hope is that originators who use Lendwise will start to support the Merix trailer compensation model as their business grows, and as they start to plan for the future,” said Kay. “Merix has not wavered from its value proposition of providing an innovative compensation program that pays the originator for the life of the mortgage.”
Key Lendwise changes:
- A new compensation program that pays up to 130 bps up front.
- End to End Underwriting
- Full support from MERIX Directors of Business Development
- Introduction of new products
- Lendwise volume counts towards MERIX status levels