Stay tuned, brokers, says Pacific Mortgage Group CEO Ron Swift
on the heels of the Argentum
acquisition, network consolidation will undoubtedly continue as companies struggle to achieve scale.
“I see other brokerage companies doing this, because the regulatory changes are making it harder to do business,” says Swift. “Everyone is going to look at what makes the best sense. Sure, you can be a small regional player; but nationally you need size to compete.”
Yesterday’s takeover announcement has received positive acknowledgement and best wishes from brokers throughout the channel, both for Swift and the new president of Mortgage Architects
, Albert Collu
, a past IMBA
president and founder of Argentum (see comments
for “Breaking News”).
Swift is billing the move as key to winning the kind of economies of scale needed to better weather any slowdown for a real estate market still grappling with tight mortgage rules.
“Brokers need technology support, they need marketing programs,” says Swift, who made the blockbuster announcement yesterday that Mortgage Architects would be taking over Argentum Financial. “These are costs you need to maintain to make it work. You need scale to grow and succeed.”
For Pacific, Collu is also part of its winning strategy.
“Albert’s vision is very much aligned with Mortgage Architects leadership,” said Swift. “Albert possesses great business acumen and will be a strong advocate for the broker channel and for communicating Mortgage Architect’s value proposition in the marketplace.”
As for Swift’s next step, there are currently no plans to introduce desk fees, he tells MortgageBrokerNews.ca. Those coming from Argentum will be offered the same contracts and licencing options as current MA brokers.
“We will be offering the MA business model,” says Swift. “But ultimately it will come down to what Albert wants. He is the man in charge.”
Collu stated in the press release that “the unique and compelling model and structure at Mortgage Architects will support our brokers and give them a dynamic path for growth and opportunity in the industry.”
According to Swift, the Argentum Mortgage brokers will re-brand under the Mortgage Architects label with the full transition expected to be complete by the first quarter of 2014, adding some 500 brokers to the MA family.
The relatively rapid transition process is the result of a lot of preliminary work by MA and Argentum, says Swift.
“We began this process back in mid-January,” says Swift. “After talking with Albert, we discovered we had a lot in common, with similar philosophy and leadership styles. We looked at our business models, and saw they were complementary. With Albert we are picking up a great leader and some great employees to go along with him.”