In a recent conference call with MCC owners, CIBC reportedly suggested that MCC might be able to sell the new Home Power Plan (HPP). This product is currently being piloted by CIBC and would give MCC brokers a valuable replacement to FirstLine’s popular Matrix Mortgage. At one time, the Matrix was one of the best selling products in the broker channel. It is going kaput when FirstLine closes.
PC Financial still offers its popular Secured Borrowing Account (SBA) through MCC brokers. This product allows for a secured line of credit in second position, behind another lender’s first mortgage.
For the foreseeable future, MCC will continue to have access to CIBC products and discounted pricing with the additional benefit of CIBC’s “Brand to Brand” policy. This program reduces income verification requirements for clients switching between CIBC products.
The above products are unique advantages for MCC in the brokerage industry. If there were assurances that CIBC would not divest of MCC, these advantages would help it attract new brokers.
However, with CIBC distancing itself from brokers through its FirstLine closure, there is lingering uncertainty as to whether MCC will stay under the CIBC umbrella. Hopefully CIBC gives the industry a better picture of how MCC fits into its long-term plans, and soon.
Rob McLister, CMT
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