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Mortgage Broker News | 12 Mar 2014, 09:55 AM Agree 0
One broker is embracing a new model that he hopes will aid in retention and set him up for retirement; but is he forsaking the proud pillar of the industry: Independence?
  • Kim Reddin | 12 Mar 2014, 11:59 AM Agree 0
    To me this sounds as though you have left the Mortgage Brokerage business in favor of the banking business which is fine, but not a model I personally favor for my mortgage clients as the options are now limited to your suite of products. In fact that is why I choose the mortgage brokerage industry over the banking industry. It's all in personal preference I suppose.
  • Okanagan Broker | 12 Mar 2014, 12:11 PM Agree 0
    Have to agree with Kim, having been a banker for many, many years before becoming a broker myself, Paul is simply doing the reverse and heading back to the "banking" world. Nothing wrong with that if it provides him with the security that being a Mortgage Broker might not, but it's not for me. I wish him well and am curious to see how this model pans out....
  • Ron Butler | 12 Mar 2014, 12:12 PM Agree 0
    Paul raises some interesting points. A large independent brokerage might want to consider peeling off a shareholder to acquire this sort of franchise so there could be an exchange of product revenues.
  • Kevin | 12 Mar 2014, 01:23 PM Agree 0
    If memory serves me, Paul Bath is still a member of the Centum network. Interesting that they would allow one of the franchises to do this, what does it mean for Centum?
  • Paul Therien - CENTUM | 12 Mar 2014, 01:54 PM Agree 0
    Hi Kevin, Yes... Paul is a member of the CENTUM Family, and we are very proud that he is. That the largest credit union in Ontario chose a CENTUM professional to pilot this program is not only a testament to Paul Bath and his professionalism, experience and knowledge, but also to CENTUM and the way our business is viewed.
  • John Bargis | 12 Mar 2014, 02:18 PM Agree 0
    Interesting, but the article is far too general for one to make any kind of business analysis. Simply put, an in depth study on the pluses and minuses.
  • Carol McCaffrey | 12 Mar 2014, 02:29 PM Agree 0
    I am curious to know if he had to give up his broker license to work, technically, for the credit union? anyother broker would have to give up their licenses to return to the "bank" world
  • Eric Putnam | 13 Mar 2014, 10:26 AM Agree 0
    Interesting discussion and a pilot to watch. Back in early 90s, before CIBC bought it, the former FirstLine Trust created the original Mortgage Centre franchise as an agency where they got first right of refusal on business that fit their guidelines and we could broker to other lenders. As franchise owners we got professional support to help build our business and were treated well. Canadian First also has a unique model partnering with select brokers. Since merging with Moncana Bank it will be interesting to watch their development as they have a very experienced management team on board.
  • Keith | 14 Mar 2014, 12:26 PM Agree 0
    The challenge with Canadian First, as I understand it, is that they are in the red quite a bit (although that could just be rumour). Also... in the world of banking consumers expect a certain degree of brand consistency. I have seen some of the Canadian First broker offices, and I have to tell you… there is no brand or office consistency. In the end that is going to cause them significant issues.

    Meridian is one of the largest credit unions in the world, deep pockets, and from the look of Paul Bath’s site, it is just like walking into a Meridian branch. That is going to give the consumers’ confidence in a way that Canadian First is going to struggle with. This model has been tried in Australia with huge success – one of the largest banks there has a large network of franchised locations. This is one to pay close attention too.
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