Xceed is sweetening the commission pot for its growing number of broker partners, tabbing on 25 bps for deals funded during the holidays and, indeed, for two months afterward.
The commission bump-up will see “Friends of Xceed” rake in 115 basis points for each and every three-year deal and 135 bps for a five.
While the offer is in effect until February 29, 2012 -- Xceed tweeting the news on Wednesday, at the same time posting it to its site for brokers – it’s likely focused on growing originations at a time when much of the market is on holiday hiatus.
The aggressive initiative largely mirrors the promotions of a few other lenders and reinforces the idea that Xceed is actively looking to deepen its funding pool through brokers.
Hundreds of brokers have already welcomed Xceed back into the fold, registering to do business with the lender despite what its president calls some “skepticism” about how long it will stick around.
“Yes, we have registered 200 brokers in the weeks that we’ve been back in the broker channel, and we’re not going to stop there,” Michael Jones told MortgageBrokerNews.ca in October, pointing to growing interest among mortgage professionals. “Yes, there is some skepticism about our return to the broker channel ... but what brokers need to know is that we will stay in the channel as long as we can add value and make a healthy return.”
In September, MortgageBrokerNews.ca broke the news that the company, having settled an outstanding legal dispute with funding partner HSBC, had come back to the broker channel. The return ends an hiatus begun in January and taking many of its broker partners by surprise.
That may now be water under the bridge for the growing number of residential specialists drawn back to the lender, now entirely focused on A deals.
Broker feedback also affirms the company’s decision to go with a simple upfront compensation structure, eschewing minimum volume requirements, even if it means doing away with volume bonus, suggested Jones.
“I think a lot of large lenders today are focused only on those large brokerages that will bring them large numbers of funded deals,” he said. “We are working with small- and medium-sized brokerages. We know who we’re dealing with and there’s a relationship that should” translate into a significant amount of business.
Broker appeal may also have something to do with Jones’s decision to offer 110 basis points on five year deals and 90 bps on three-year ones. That’s likely been heightened with the short-term commission increase.