VERICO: Rumours of my death have ...

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It's the broker equivalent of turning lemons into lemonade, with VERICO using rumours about its sale to a competing network to bring an expanding membership even closer.

“We made our position very clear in an email to members this month,” Colin Dreyer told MortgageBrokerNews.ca Tuesday. “VERICO has not been sold nor is VERICO for sale. We think that we have successful laid that to rest and addressed broker concerns.”

That email – dated Feb 17 and circulated to all of the network’s thousands of members – has since made its way across the breadth and scope of the industry.

Dreyer penned the dispatch as a way of ending talk the network had entered into an agreement to transfer control to a competitor, effectively kick starting the kind of consolidation a growing number of industry veterans predict.

They point to increasing competition among large brokerages to retain and grow broker numbers and, by extension, their relationships with lenders.

While that trend may be in play, VERICO, as a leading industry brand, isn’t going anywhere, said Dreyer. In fact, the network is busy extending its roots, adding 28 offices and $3 billion in funded volume last year, compared to 2010, said Dreyer.

That growth spurt has continued into 2012, with the network taking on another six offices and a year-over-year volume increase of $1 billion.

Ironically, that movement may have given birth to the kind of speculation Dreyer moved this month to quash.

“We are very flattered that our competitors have such interest in the VERICO Network, but to say VERICO has been sold or is in the market to be sold is utterly false,” he said in the email. “Unfortunately some of our competitors have decided it would be to their benefit to use and/or create these rumours as a ‘negative sales tactic’.”

The concerns, in fact, mirror those of executives at a handful of other networks

Dreyer is calling on the industry to re-channel  competitive forces.

“We all need to compete, but we have to be careful,” he told MortgageBrokerNews.ca. “We should promote our respective businesses, but not at the expense of another broker business.”

  • R. U. Serious? on 2012-03-01 6:15:10 AM

    Talk about the pot calling the kettle black. If I had a dime for the number of times I've had a VERICO rep call me saying that other "nationals" were up for sale, I wouldn't have to do mortgages anymore. Does Colin need a soother? It's amazing that he only complains when the "brokerage" rumoured to be up for sale is his.

    The fact that he felt the need to send a letter to his entire network to quash it simply adds fuel to the rumour that they are for sale. Why else would you feel the need to deny it if it weren't close to the truth? Sounds like he's trying to preserve what he has to keep the sale price as high as he can...

    Let's face it, Verico doesn't provide any value other than aggregation for volume bounus, and we all know where THAT's headed in our industry...if he doesn't sell now, he'll have nothing to show for his efforts. Better to stay independent or join a national that adds value to your business other than just volume bonus.

  • AMP Broker on 2012-03-01 8:02:36 AM

    Lets face it, everything is for sale at the right price. All the big nationals are essentially aggregators and the model is in trouble because of the lack of value added they bring.
    They need to learn to make it on the VB they get from lenders for being aggregators, not on the 5% they take off the brokers. Way Way too expensive.

  • Re: r u serious on 2012-03-01 3:48:28 PM

    Wow. Themselves string words from an anonymous guy. Can't agree with all of it. Or any of it really. Last I heard Verico was growing faster than anyone else and the biggest in Canada. Must be some reason why a lot of good brokers are joining them and none leave. I've been with my broker for ten years and I'm not switching teams unless he does. But if we did. Colin would be our first phone call too. Reputation still counts in this industry anonymous. Protecting yours I see ;)

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