The future of D+H and Marlborough Stirling

The future of D+H and Marlborough Stirling

The future of D+H and Marlborough Stirling Broker networks cutting out technology middle-men? That could become a reality, according to one lending veteran.

“Here’s how I think it (could become) a reality: When I take a look at the economic structure of mortgage brokerage firms, where are they going to get the next basis point?” Boris Bozic, president and CEO of Merix Financial, told “Will they reach out to lenders and say ‘I’d like some direct connectivity to you and I will send it to you on this platform. We know how much you pay to use the dominant platform and we’d like some of that money. And there might be a savings to you.’ Will some go down this path? Absolutely.


First reported by Canadian Mortgage Trends, rumour has it that lenders and broker networks are growing tired of offering a slice of the mortgage pie to the two leading deal processing companies, D+H and Marlborough Stirling. Those companies reportedly earn 5-6 basis points per deal.

According to the report, Marlborough Stirling’s parent company, Capita plc could be searching for a buyer and some leading lenders – and broker networks, including DLC – could be in the running to purchase it.

As it stands, Marlborough enjoys just a small share of the processing business, but an injection of capital – and its exclusive use if it were to be bought – could help bolster its position.

Alternatively, networks and/or lenders could develop their own platforms.

According to Bozic, that could make any broker network that much more attractive to brokers who would no longer have to hand over a percentage of their deals to the processing companies.

“I don’t believe today that a mortgage broker necessarily would leave one firm to go to another for economic reasons just because the broker’s getting the majority of the money anyways,” Bozic said. “It’s an emotional connection. I think it’s a point of differentiation; broker owners themselves are probably going to invest more in technology to differentiate themselves from the competition.”

D+H chose not to comment on the story.

Calls to Marlborough Stirling were not returned.