Al Kelly has hit on an idea whose time has come. That, at least, is his bet. Actually, it falls to lenders and brokers to decide the success of his brainchild – an application submission website not unlike Expert and MorWEB, but entirely focused on private lending.
“StrategicMatches.com is unique and has generally excited everyone who has been introduced to it,” the B.C.-based Kelly tells CMP. “Its purpose is very straightforward: to bring together mortgage broker applications with private lenders.”
The site allows brokers to float an application by any number of MIC's / private lenders, filtering out those whose lending criteria preclude their interest. The broker can then send the application to those for whom the deal fits the bill.
Either way, Strategic Matches is set to capitalize on real interest in private lending spurred by tighter mortgage rules and the kind of low rates responsible for putting that option on the radar screens of A brokers.
CMP: Explain a little more about the system.
Kelly: The lenders on the Strategic Matches system create and maintain a lending profile based on their lending criteria, effectively creating a set of filters to identify loan files of interest to them.
The broker inputs the details of their client application. Once the application is complete, the system identifies those lenders that would be interested in the loan file (based on the filtering process) and the broker submits the application to the interested lenders directly through the system.
CMP: It seems that the system could dramatically open up the private lending market for the broker and their client, as the system can identify a number of interested lenders for the broker to work with on any particular loan file. What are some of the other benefits to the brokers, especially the newbies to private lending?
Kelly: Given that there are many more lenders in this market segment than in the traditional mortgage market and that most brokers have limited experience in the private lending market, the site provides very simple access for a broker to present an application to the market, without having to know the lenders or their lending criteria. The submission will give their client's application broad exposure to the marketplace, with the obvious advantages that can bring.
Even for experienced brokers who know a number of private lenders, the site will relieve them of the need to keep up with changes by the lenders they know, and will likely introduce them to lenders they don't know, or lenders who now have an interest in a loan file that they might not have looked at in the past.
For all brokers, the system provides a big savings in time and frustration.
CMP: What's the learning curve on using this system?
Kelly: Once a broker uses the system a couple of times, it takes only a couple of minutes to complete an application for submission, and the site application (the requested information) is