myNext Mortgage Company, formerly a lender exclusive to Mortgage Architects and MortgageBrokers.com, has opened its doors to select outside brokers.
“With the recent announcements of lenders leaving the marketplace, we feel that the timing is perfect,” said Alex Haditaghi, CEO of myNext Mortgage in a press release.
VP Underwriting, Lorraine Sato, tells us the move is intended to boost myNext’s volume. “If we could get all the volume we want from our own distribution channel, we wouldn’t go outside.”
Increased volume is key to myNext’s goals, which include rolling out more products (like a variable-rate mortgage) and acquiring a bank license.
Sato says myNext’s core advantages are competitive rates and highly experienced underwriters with a service mindset. “(Our) underwriters don’t just click the button and send the deal off to the insurer,” she says. “They work with brokers.”
Based on our own past experiences with myNext, that is true. myNext underwriters make a proactive effort to help you structure more challenging deals, and that isn’t always common in our industry. Moreover, its lending policies are relatively straightforward. If a deal meets CMHC or Genworth criteria and the property is not unusual or remote, the deal usually gets done.
At this stage, myNext is generally limiting the agents it works with to those who close at least $10 million of mortgages annually. Its preference is brokers who “will commit volume to myNext,” says Sato. Interested brokers can initiate the sign-up process by going here.
Apart from volume aggregation, targeting outside agents also provides a way to recruit new blood to Mortgage Architects and MortgageBrokers.com. The thinking is that outside brokers who use myNext will be attracted to the trailer fee model, volume-driven 95-100% splits, and other offerings available only to in-house planners.
myNext Mortgage Company launched in 2006 and has funded roughly $1.56 billion since then. It offers 3- and 5-year fixed products, both conventional and high-ratio.
Rob McLister, CMT
