While flipping through some old news from the prior month we noticed that AGF Trust saw a 154% jump in loan originations last quarter. It was thanks largely to its Verico mortgage distribution partnership.
That partnership, which launched in January 2011, gives Verico brokers an exclusive co-branded mortgage and trailer-fee compensation structure. AGF Trust plans to expand this program to other partners and it’s got surplus resources to do it. “A substantial capital base relative to current lending assets will…support our efforts to grow our mortgage book,” the company stated in its latest financials.
“AGF Trust remains focused on quality growth through its mortgage broker channel,” said Chairman and CEO Blake Goldring.
The broker market is “an attractive source of high-quality loan originations,” notes the company. “The mortgage brokers’ share of total loan origination has been resilient in the past year, and our expectation is that mortgage brokers will retain a significant market share”
In its financials, AGF Trust also hinted of new products, saying it intends to introduce “offerings to better match the competitive dynamics of the mortgage broker marketplace.”
As of Q2, AGF ranked as the 21st largest broker lender by volume, according to D+H data.
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