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Pacific Mortgage Group Plans 100% Payout Model

Mortgage-ArchitectsUp to 100% commission payout with no monthly charges or advertising fees. That’s what Pacific Mortgage Group Inc. (Pacific) will offer mortgage brokers.

Pacific is the parent of Mortgage Architects and MyNext Mortgage (soon to be “Radius Financial”).

“It’s a first in the industry,” says Meini Ickert, SVP of National Sales with Mortgage Architects.

The “catch”? Brokers must be Mortgage Architects franchisees and send up to 30% of their volume to MyNext Mortgage, the company’s exclusive lender. Here’s the full release with a complete breakdown of split levels.

“Our brokers are the only ones in the industry that have their own CMHC approved proprietary lender,” said Alex Haditaghi, Pacific’s CEO. Haditaghi wants to funnel volume to that lender by using 96-100% splits as a loss leader strategy. That’s because lending margins are notably better than mortgage brokerage margins—which are getting tighter all the time.

Here’s a complete rundown of Pacific’s new broker offerings.

If MyNext Mortgage offers exceptional value to clients (via outstanding rates, service, and features), it’s a unique strategy that could be effective. MyNext mortgages pay trailer fees as well, so that’s another bonus to brokers.

Robert McLister, CMT