Mortgage Alliance has officially found a new home for its industry-leading Right Mortgage, giving Paradigm Quest – and “multiple lenders” under its umbrella – the nod.
“We’re very pleased with the decision to take the Right Mortgage to Paradigm,” MAC President Michael Beckette told MortgageBrokerNews.ca. “The Right Mortgage retains all the features it had before, with all the built-in flexibility and transparency consumers enjoy, plus more product options and multiple lending sources. In addition, a website will allow clients to get more involved with their own mortgages in real time.”
The announcement answers the prayers of MAC mortgage professionals who deluged Beckette with emails in late June after Macquarie Financial – the lender co-branding the trademark mortgage process – announced it would quit the broker channel.
The move left MAC looking for alternative funding for the Right Mortgage, which enables borrowers, and their brokers, to customize mortgages by tabbing features onto a bare-bones structure. Taken as it is, that no-frills framework allows the client to access some of the lowest interest rates in the marketplace. Macquarie’s decision to give up direct sales through the broker channel ended its nearly four-year run as funder for the Right Mortgage – what MAC prefers to call a “branded mortgage process.” The product remains exclusive to brokers and agents in the Mortgage Alliance family.
“We weren’t given any advanced notice when Macquarie made its announcement,” said Beckette, “and it was a surprise. We were approached by six different lenders almost immediately, but we went with Paradigm because there was an established level of trust there already and they could ensure the Right Mortgage maintained the flexibility that has made it so unique in the market.”
The value attached to thousands of “Right Mortgage” under Macquarie is now approaching the $4-billion mark, with over a billion of that coming in 2010, Beckette told MortgageBrokerNews.ca. MAC brokers are anxious to add to those numbers, some relying almost exclusively on the product and its pick-and-choose features, such as varying amortization, rate holds, and pre-payment and "Skip-a-Payment" options. Those clients get what they pay for -- or rather, pay for what they get -- with interest rates decided by the number and scope of those add-ons.
That bestseller will now be supported by several wholesale funders, said Kathy Gregory, president & CEO of Paradigm. “A number of them will provide the Right Mortgage with a diversification of funding options, which should provide long-term stability for that business. What’s also important to note is that the transition will make for seamless, uninterrupted originations for the Right Mortgage, which will now be entirely Mortgage Alliance’s product, and we’ll be here to provide the back-office support.”
The move to Paradigm will also see MAC sync its MortgageBoss platform with the mortgage-servicing company’s RUBI system, allowing borrowers real-time access to their account information. It’s the kind of transparency and customer-service focus that has garnered the Right Mortgage so strong a following, said Beckette.