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.”