Brokerage adopts new underwriting model

Brokerage adopts new underwriting model

Brokerage adopts new underwriting model

A large Toronto brokerage may be leading the way with launch of a flat-fee-per-transaction model for its new centralized underwriting service.

"We are excited to offer this valuable service to our team of mortgage professionals to help them to serve the mortgage needs of their customers more effectively,” says Chris Karram, Safebridge Financial’s co-CEO. “It is similar to having a part-time support team without the hiring, managing, financial commitment and accounting that goes with it.”

It’s also a model that charges agents a flat fee for every funded deal that goes through the centralized service. That's instead of demanding a higher split for the brokerage, a system much more common to the industry. Ostensibly, the Safebridge model allows agents more leeway to pick and choose which of its deals to send through the system.

Bringing the unit under the management of a former underwriter with National Bank is another bragging point for Karram, pointing to a Feb. 19 launch.

“We are just as thrilled to partner with Ahilia Somai, to help us build and create this new platform,” he told MortgageBrokerNews.ca. “Our new centralized underwriting service department is a first for Safebridge, and a first for a mortgage broker of our size.”