Proposed federal legislation would hand brokers new national lending partners, keener to use them for expansion into virgin territory.
Video transcript below:
Jemima Codrington, Mortgage Broker News
Jemima Codrington: The federal government is proposing some big ideas that will make credit unions even bigger players for brokers. Hi, I’m Jemima Codrington and welcome to the Big Story on Mortgage Broker News.
These big ideas are focused on transforming regional credit unions into federal entities. This could be a big win for brokers.
Enza Venuto, Centum
Enza Venuto: With credit unions growing nationally the pros that are happening out there, it opens up more doors for the community, for the mortgage broker community, it allows us to know more about the credit unions and to be able to understand more about what they do and how they work and building a relationship with them.
Jemima Codrington: There are other big reasons brokers might welcome the change, but the potential negatives may be just as big.
James Laird, True North
James Laird: So I think there are clear pros and cons as they consider whether to go national or not, in the pros category they will be able to reach Canadians with their clear national branding message, so more Canadians will be aware that the credit unions offering their services across the country. But when they go national they will fall on OSFI’s regulation, which means that they lose the flexibility that they have right now of being able to set their own underwriting guidelines.