One broker is hoping that the larger networks forming in the channel will speak loudly and carry a bigger stick – especially to level the playing field against the five big banks.
“Hopefully the new, larger players will work together and have a louder voice with the associations and have greater influence politically,” says Mark Cashin, a broker with Dominion Lending Centres
Central in Mississauga. “Currently brokers have numerous, soft voices. The banks have five loud voices. The consolidation model will bring a much-needed ‘Critical Mass’ to the broker channel.”
Cashin sees the Mortgage Architects
takeover of Argentum
Financial as only improving that clout – much like the DLC
purchase of The Mortgage Centre on June 13. With larger networks, Cashin argues, brokers will be able to better compete against Canada’s major banks.
“There is more than enough business for the mortgage broker channel if the playing field is level, unfortunate that the playing field seems to keep tilting towards the banks favour,” Cashing told MortgageBrokerNews.ca. “Hopefully these mergers will help even the playing field.”
The purchase of Argentum by MA announced last week saw Argentum founder Albert Collu
appointed as president of the new Mortgage Architects. Pacific Mortgage Group CEO Ron Swift
said the incorporation of 500 Argentum agents into the MA fold will expose them to the sophisticated tools already available at the company.
More agents using better systems with the backing of a large company are just what the doctor ordered for a struggling broker industry, says Cashin.
“On the agent side, the critical mass will help the majors build better systems and support networks for the agents,” says Cashin. “The franchisors will have to up their game to attract the good agents and teams.”