Three major brokerages have come together and intend to grow their loan volumes by $1.5bln within a couple of years using technology.
The brokerages—Paragon Mortgage, Premiere Mortgage Centre, and Compass Mortgage Group—will remain autonomous components under the new Tango Financial, but by streamlining their systems with innovative technologies they intend to aggressively recruit new agents and augment loan volumes to as much as $5bln.
Tango’s CEO Jason Henneberry says the fundamentals behind recent network-level mergers remain consistent even on the brokerage level, and by pooling resources and investing in technology for the benefit of agents, business should boom.
Next month, Tango—which is part of the Verico
network—will unveil STREAM 5, a marketing platform for social media content and lead generation that Henneberry believes will be a game changer. But STREAM 5 is only one of a few platforms Tango Financial will use to recruit talent.
“It’s a ‘fully done for you’ system with proven marketing funnels that we’ve built and tested in-house over the last couple of years,” said Henneberry. “One of the projects is our new CRM system. It’s the first Canadian CRM that was built from the ground up by brokers for brokers, and it’s for agents or team that are looking to streamline the five components of their business: marketing, sales, administration, payroll, and compliance.”
Don MacVicar, president of Premiere Mortgage, says starting a confection of brokerages makes sense in this day and age because of narrowing margins.
“It’s harder and harder to run a brokerage than ever before, and when you can share your operation and investment with others, you’ll be able to do more things,” he said. “Agents expect higher splits every year and most agents can walk away if you’re not providing value every day, they can go work for someone else, so provide value so nobody leaves. That costs money.”
Additionally, MacVicar says lenders expect higher volumes and efficiency rates these days, and, as a result, it can be difficult for smaller players to stay afloat. However, with the size, strength and reach of Tango, he doesn’t expect to be among them.
“All three brokerages have done considerable amount of recruiting,” he said. “We’ve just come off great years, all three of us. Revenues will only go up because our agent count and year-over-year volume is going up. The bottom line will get better.”
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