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Mortgage Broker News | 17 Jul 2014, 11:00 AM Agree 0
The industry might soon see B-deals introduced to rate sites but the idea has mortgage brokers questioning how successful a business model it would be.
  • Len Lane | 17 Jul 2014, 11:55 AM Agree 0
    Its probably cost prohibitive with the amount of time that can be wasted on working with people that have bad credit and no money may suck up any profits. Unlike A deals good chance you may get 2 out of ten that go us we know,th
  • Jake Abramowicz | 17 Jul 2014, 01:33 PM Agree 0
    Funny enough was just at a small IMBA seminar that had IC Savings, Home Trust, Equitable and CWB and none of them indicated any interest or desire to join a rate site. B deals are way too specific to be shopped on rate.
  • Len Lane | 17 Jul 2014, 01:41 PM Agree 0
    And those are B lenders, Private lenders are a whole other game.
  • John Bargis | 21 Jul 2014, 01:02 PM Agree 0
    Good luck to Rate Hub in the "B" space, unless the plan is to process all leads under their own new "Broker Arm." Far too many moving parts on a "B" deal, and far more time consuming on a per unit basis to attract brokers in the rate game in this space. Closing ratios are significantly lower than in the "A" space, which will drive the cost up for any broker who participates in this endeavour.

  • Paul Therien - CENTUM | 21 Jul 2014, 06:15 PM Agree 0
    There is a lot of conjecture happening with regards to RateHub and their opening of a mortgage brokerage. In my personal opinion I believe that it is far too early to jump to conclusions about what the end result will be. There is one key items that seem to be ignored in all of the commentary. RateHub will only be joining the likes of other rate sites that have their own brokerage arm. If those other sites have the ability to maintain their business, there is no reason why rate hub should not be able to do the same.

    Most leads that are generated by rate sites and other online platforms have a limited window of opportunity. Specifically, that if not responded to within 30 minutes the conversion ratio on the lead drops dramatically. We can only speculate on the dropped lead rate but we do know that for web generated leads there is a very low conversion rate in the mortgage industry. It could be that this is a solution by RateHub to reduce that for leads generated from their site. Under the current model they have limited control over the consumer experience. It is important to note that if there is a low conversion rate due to lack of response or long response time on leads it will result in dissatisfied consumers. Poor consumer experience will have a large impact on the continued viability of the site in the long term.

    Yes they earn revenues from the purchase of the leads, but the margins in a lead generation company are even thinner than a mortgage brokerage. This may very well present a unique opportunity to convert a greater number of leads into real customers and at the same time generate greater revenues for themselves as an organization.

    I am not advocating for this move, nor am I advocating against it. I merely suggest that before we instantly rush to throw stones at them, we attempt to consider there are likely a variety of reasons why they have made this decision.
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