tailored to the private lending market. The application specifies the information to be input, and directs the broker to comment on matters that they might not otherwise think about, - often matters that don't come up when presenting files to “A” lenders.
CMP: OK, who pays for this?
Kelly: There is no cost for a lender to use the system. I want to encourage every lender to register on the system and create a profile for themselves.
The system is currently set up so that the broker will pay a small referral fee when they successfully fund a mortgage arranged through the system. Otherwise, no cost.
CMP: You're betting brokers will pay that small fee. Why?
Kelly: As I mentioned earlier, the private lending market is a mystery to many brokers. There is no transparency in the market and there are a lot of lenders (well over 100 in B.C. alone). It is impossible for most brokers to keep up with the “A” market lenders, never mind the “B” or “C” market.
Many brokers now send their “B/C” files to “B” lender specialists, but in doing so, they give up control of their file and generally add another substantial layer to the fees that will be charged to their client.
This site allows the broker to maintain control of their client/file and the fees associated with the file.
Personally, I have been brokering for more than 11 years and have been involved managing small MIC's for more than 12 years.
As a broker I have had my share of files that I had difficulty placing because I didn't know the lenders in the market, and as a MIC lender, I often found myself with money to lend and no applications for loans that met my lending criteria.
I think these are common frustrations with many brokers and lenders, and this site is the result of my trying to resolve those frustrations, for me and everyone else!
CMP: You've already had some deals funded through Strategic Matches in Western Canada. The goal is to move eastward. How are you getting there?
Kelly: I have had discussions with a few of the national brokerages about rolling this site out to their brokers, and this is ongoing. I just completed my first webinar on May 7th, for a number of brokers in western Canada (B.C. to Manitoba) from one of the national firms.
A few of the B.C. lenders on the system do lend in more than one province, but in order to role the benefits of the site out across the country I am actively looking for partnership arrangements in most markets in eastern Canada.
For more info, go to www.strategicmatches.com