Pressure from a vocal group of mortgage brokers has contributed to the cancellation of Kevin O’Leary’s keynote address at this weekend’s annual CAAMP Forum.
O’Leary took the news in stride. “Who knew the mortgage industry could be this exciting!” he told us today.
But this news was a major disappointment to those who paid CAAMP to hear Kevin speak. And more than that, it showed the hazard of misinformation and reflected an unproductive attitude among certain industry participants.
What happened
The atrocity in question, is that O’Leary’s new mortgage company:
- bypasses mortgage brokers
- trivializes brokers, according to critics
- sells only one product, and
- uses a broker-friendly servicing company to pull it off.
There’s also controversy surrounding Dominion Lending Centres pulling its sponsorship of O’Leary—a conflict that (in our humble view) could have, and should have, been avoided.
To many, myself included, it was disappointing to read some of the broker comments about O’Leary Mortgages. I have expressed my reverence for this industry many times, and I believe in good brokers as much as anyone, but it is self-deceiving to think that a full-service broker model is the only fit for mortgage consumers.
Moreover, it is wrong to shun a new mortgage competitor based on misinformation (more on that below). In fact, it’s outright dangerous.
Instead, we need to learn from new competitors (it’s the “keep your enemies closer” idea). Apart from the formidable banks and credit union competitors, the next decade will spawn all sorts of non-broker models. Direct-to-consumer (DTC) lenders, in particular, will see rapid growth.
(In a way, brokers were the original direct-to-consumer model. With respect to O’Leary Mortgages, it is starting as a DTC mortgage company. It’s been very clear, however, that the next step is then to distribute through brokers, once its systems and methodology are battle-tested.)
Tomorrow’s new business models will likely undercut most banks and brokers and cause an industry outcry like we’ve never seen before. But this will happen with or without controversy, and with or without Kevin O’Leary.
The good news is that consumers win in the end–so long as (a) they are properly educated, and (b) they are sold suitable products.
The Wrong Target
Paradigm Quest, one of Canada’s most respected mortgage outsourcing companies, has taken heat over servicing O’Leary Mortgages—and unjustly so. We hear it’s even had threats of business retaliation, which is repugnant given Paradigm’s steadfast support of our channel over the years. It makes you question whether critics even realize that it already services their competitors (through its myriad of white-label agreements).
Paradigm has gone to bat and backed brokers since its inception. Founder Kathy Gregory said her company has no contract with O’Leary at this point. “He contacted us to provide outsourcing for his mortgage manufacturing business plans,” she said.
“Our understanding is that Mr. O’Leary does in fact have a registered brokerage and has a longer term view of expanding his business within the residential mortgage market. He is moving towards becoming a lender and partnering with broker industry distribution. This initial launch is phase one of a much broader view of supporting the mortgage industry. Our role is simply to provide our platform of mortgage servicing for his mortgage entry strategy.”
And contrary to some claims, she clarified that, “We are not funding O’Leary mortgages,” but rather, Paradigm is providing its outsourcing expertise.
But even if Paradigm were funding a DTC model like O’Leary’s, it would in no way be an affront to brokers. It would be a necessary progression for a company that must grow and diversify from the broker industry to survive. In our view, it has no choice but to service new entrants if it hopes to: (a) attain scale efficiencies, (b) help brokers compete with banks and their enormous balance sheets, and (c) provide competitive funding costs to brokerages, agents and its correspondent lenders.
The Broker Benefit
“Mr. O’Leary is a very high profile individual and my personal view is he brings valuable attention and incremental exposure to the broker industry as a whole,” Gregory said.
Indeed, it seems like every other month there’s a new development that questions the broker channel’s viability. Meanwhile, we struggle with the fact that 60% of consumers don’t have a good understanding of what mortgage brokers do, according to Maritz. It was therefore refreshing to hear a celebrity proposing to boost consumer awareness of brokers (whether it’s the “right” celebrity is secondary and not our decision to make).
The reality is O’Leary is entering the market as a mortgage brokerage (here’s his FSCO link). For the ultimate capitalist to adopt a brokerage model, in some ways, validates the model. His choice to start with a different business plan than the typical broker is peripheral.
It’s interesting that so many have already judged that plan–especially since so many questions remain unanswered. For example:
- Is O’Leary really doing customers a disservice, as some claim, by selling only a 5-year fixed (which more than two-thirds of borrowers are choosing anyway)? Certainly a 5-year term isn’t right for everyone, but could it be right for his target market? No one can answer that yet because we don’t have enough product details or know how O’Leary Mortgages will qualify borrowers.
- How much guidance will customers of O’Leary Mortgages receive? Some charge that his call centre reps won’t provide adequate advice. But no one except O’Leary’s team has enough information to make that judgment. According to O’Leary: “When people call O’Leary Mortgages they’re going to speak with someone very knowledgeable about the (O’Leary) mortgage plan, about the application process, about the attributes of the mortgage, and the terms and features. That’s where we’ll add our value.”
- Will he sell through brokers? Some don’t believe that O’Leary will distribute through brokers. But despite his polarizing and antagonistic TV personality, there’s no justification for depriving him the benefit of the doubt in this case. He’s gone on record with the intention of distributing through brokers and he should be given a chance. With the threat of lenders exiting our market, new non-bank broker lenders with their own funding sources are few and far between.
Should you trust him?
“You don’t have to like me to trust me,” O’Leary says.
He cited an analogy of an elderly lady who phoned him on a call-in radio show in Montreal. She said, “You know Mr. O’Leary, I watch you on TV and I think you’re a bastard. But I own three of your mutual funds because I know you’re going to make me money.”
“And that I think sums it up,” he says. “I’m trying to do what’s right for consumers and force them to look at the mortgage business the way they should…I’m going to make them realize what they’re getting themselves into and how they’re going to get themselves out of it…”
He adds that, “The analogy is the mutual fund industry. It doesn’t matter what you think about Kevin O’Leary. What matters is the performance of the funds you invest in….Whether you like me on Dragon’s Den or Shark Tank, or not, has nothing to do with ultimately why you put money in harm’s way. You need a return.”
“Same thing in the mortgage business,” he says. “When you get a mortgage you need a plan. You need a strategy and you have to understand that this is not just a one-time event. You’re going to live with this thing long-term.”
(For those who are wondering about O’Leary’s fund performance, he states that 12 of his 19 funds are in the top quartile. We didn’t have time to verify that, but his Canadian bond fund is in the top 10 out of 670 funds.)
The catalyst of Gary Mauris
Monday’s CMT post from DLC’s Gary Mauris (whom I respect and consider a friend) seemed to prompt much of the controversy.
To this, O’Leary says, “Dominion posted something without ever talking to me. I’ve never talked to any of the representatives from there. I don’t know why they would post something like that.”
Mauris told us he tried to contact O’Leary but had not reached him by the time he made the aforementioned post.
Regardless, in speaking with O’Leary, it was clear that there had been a major misunderstanding. “I’m
not a competitor. That characterization is incorrect,” he stated. “It’s my hope to maximize
the distribution of the brand, including working in partnership with agents and
brokers.”
“I’ve
been doing this for years in the mutual fund business…My customers at O’Leary
Funds are advisers, just like the broker. It’s the same model. This is not
something new to me.”
“And certainly, [Mr. Mauris] is making a huge mistake in assuming I’m
a competitor. I’ve never talked to him so I don’t know where he would have come
up with that. But I’m happy to be coming into the market and I hope
to be working with him at some point.”
Does this not-so-warm broker welcome leave a bad taste in O’Leary’s mouth? “Absolutely not,” he says.
The CAAMP Angle
CAAMP states that O’Leary’s address was cancelled because it has a policy not to compensate or use industry participants as keynote speakers. When I heard that, the needle on my spin detector went off the chart, but I don’t blame CAAMP. It was in a tough spot and it was clearly pressured by certain industry participants to abort O’Leary’s keynote address.
The thing is, it has been known for weeks that O’Leary was starting his own mortgage company. The first public announcement (that we know of) was back in May. And O’Leary reportedly had discussions with CAAMP about his mortgage launch 3+ weeks ago. But this controversy is coming up only now, just days before his scheduled event.
There was apparently nothing in CAAMP’s agreement prohibiting him from being in the industry and speaking. Had O’Leary Mortgages not been publicized until next week, I suspect O’Leary’s speech would have happened as planned.
Yet, “Rather than adding to the controversy,” O’Leary says, “I told the
speaking agency that CAAMP had hired, that I was happy to bow out without any
financial penalty to CAAMP, and that is what happened.”
And one last point: It appears O’Leary had no intention to use CAAMP as a platform to “roll out,” discuss or promote O’Leary Mortgages, as many have wrongly charged. And he explained this to CAAMP organizers some weeks before this incident. His presentation covered economic trends, television production, and capital fund flows, followed by a question and answer period with the audience. It was also one of the rare times that he would have joined Amanda Lang (his CBC co-host and CAAMP’s MC) outside the CBC set.
“My
only regret is that the CAAMP attendees will be fully exposed to Amanda Lang, who is the Master of Ceremonies on Monday,” quips O’Leary. “Amanda is the most attractive communist
on television but without me there to defend and honour capitalism (as I do
everyday on the CBC’s Lang & O’Leary Exchange) I fear irreparable damage could be
done.”
In Sum
This story is not a defence of Kevin O’Leary. This far-too-long essay is more a commentary about maintaining an open-mind. Replace Kevin’s name with any other law-abiding Canadian, high profile or not, and this story would be the same.
Our greatest concern is this: Certain industry participants appear intensely averse to change. Many are so protective of their turf that they will refuse to acknowledge alternative distribution models and new forms of competition…until it’s too late.
The outrage expressed by some brokers over BMO’s 2.99% deal last winter was further evidence of this mindset. Threatened by the competition, a small minority chose to sell inappropriate products and crudely vilify BMO without acknowledging any of that promotion’s merits.
Strong competitors warrant respect, not contempt. And there shouldn’t be a double standard. I sometimes wonder how many in our industry boycotted Canadian Tire when it sidestepped brokers to enter the mortgage market. Probably not many.
Fortunately, the harsh comments on this topic (posted on MortgageBrokerNews.ca and here) do not reflect the brokerage industry as a whole. Numerous brokers have embraced competition in their social media responses. These are brokers who believe that what’s best for consumers is best for them. They are professionals who know that game-changing competition is coming, who realize that fighting it is futile and who know that the time to adapt is now.
Full disclosure: This debate is of a special and personal significance. While we never promote our brokerage on this website–it is important to disclose that we (Melanie, I and others) are launching a new, yet unrelated, virtual brokerage model in the new year.
O’Leary in Vancouver: If you want to see Kevin this weekend, he’ll speak in front of 450 people at the Young Realty Academy. Time: 1:30 p.m., Saturday Nov. 24. Location: Pan Pacific Hotel.
CMT readers have been offered free tickets but there are very few left. More info…
Rob McLister, CMT
Last modified: April 28, 2014
F-ing brilliant Rob!!!!!!!!!!!
Congratulations again Rob for your clarity on this hot topic! It is a good reminder to the industry to never ASS U ME until you know all the details!!
This fuss is so petty. People are too quick to judge. Give the guy a chance.
Well said.
Many of our broker lenders sell direct to our clients too. This hasn’t stopped us from using them.
Frankly, the brokers who are causing such a big stink about this should really take a second look at their business and they’ll probably see they’re spending too much time worrying about a competitor (who’s just another broker, not sure if you heard there’s thousands of them out there!) and spend that time working on your business, because you obviously need it.
Wow…I remember when a VP from RBC spoke at CAAMP. Nobody even batted an eye back then.
I am surprised any one even cares. Things must be very slow out there.
Well said – All Brokers are a direct to consumer channel and this is no different. Too bad about him stepping away from CAAMP as he is a great speaker – whether you like him or hate him
Once again, another fantastic post Rob. Nothing like telling it like it is.. I like to think of your website as The Globe and Mail of the industry while that other website (mentioned above), your typical British tabloid. Keep up the great work Rob.
Very foolish,
The archaic approach that we should “protect all the eggs we have is growing old. The time for change is upon us. If an “expert” in the mutual fund business offers to give us a glimpse into his successes than who are we to shun him. I respect Gary Mauris but feel he may have missed the mark here. If we stare too long in the rear-view mirror we will miss the horizon. Come on brokers let’s wake up. With tightening yields and decreasing commissions, should we not be looking for new opportunities to grow our’ industry?
-incredibly selfish!
Well said Rob,
I couldn’t agree more with you and I wish you good luck with your new virtual brokerage model. Looking forward to it.
Well said indeed! Great job, Rob!
I found the article most informing and reminded me of the value proposition broker provide. O’Leary wants to offer a competitive product, clarity of the obligation, simplied processing and a plan to pay off the mortgage sooner. As brokers can easily provide all of the above if we are not already doing so and offer many more lender and lending options. I welcome the light O’Leary will shed on the mortgage industry.
I paid to see Kevin at CAAMP, not some no-name “demographer”.
If CAAMP has any backbone it will stand up to those brokers, who were clearly in the wrong. Jim Murphy should get on the phone with Kevin right away and ask him to come back.
To the question: “Is O’Leary really doing customers a disservice, as some claim, by selling only a 5-year fixed?”
I answer: what does it matter anyways? Is it wrong that Tim Horton’s does not sell hamburgers? So what if O’Leary will have a limited menu option? Brokers do that, we don’t have every product that a bank might offer. And who cares? I don’t waste my time on commercial mortgages, is that wrong? It’s my business model.
It’s all about competition. If you can’t handle this business, go back to doing what you were doing before you became a broker.
I’ve been in the mortgage business got 26 plus years – I’ve seen the good, bad, and the ugly. Lenders come and go. Some even stay. We will see how this plays out.
Good on you Rob!
I thinks its BS that Gary managed to force CAAMP to cancel him, are we attending the Mortgage brokers conference, or the DLC conference? Apparently, its the latter.
I for one, don’t need Gary to censor the speakers thank you very much. I hope CAAMP is offering refunds!
Lets start a petition! the old cronies who would rather live in a cave on one side, and those open to new ideas and direction on the other. Where do I sign?
“Strong competitors warrant respect, not contempt.”
Well said, sir.
Mauris was all over this, but it was his company that went on Dragons den and probably the one who brought O’Leary’s attention more to the industry. No wonder I stay away from all the Dominion calls
Very well written Rob. I was disappointed and embarrassed by our industry the last few days. Are these brokers so focused on rate that they feel the need to attack anyone trying to show Canadians there are alternatives to the bank when shopping for a mortgage? Is their business model so weak that they are threatened by someone doing the right thing for their clients? Is the O’Leary Mortgage a threat to my business? Absolutely not! His comments support everything I have been preaching for years – that getting a new mortgage should include a strategy on how to pay it off as well. If Kevin O’Leary’s entrance into the mortgage industry increases broker recognition and subsequently market share, I’m in! I look forward to a future client asking me about the O’Leary Mortgage. I am seriously considering asking CAAMP for a refund of my Mortgage Forum registration fees. The only speaker I was looking forward to hearing on Monday being replaced by a demographer, economist, futurist?!?! Zzzzzzzzzzzz
I too am disappointed that Mr O’Leary will not be attending CAAMP. His presence was a major draw for me to the event. The goings on of the last few days only built it up that much more.
I have no problem with Mr. O’Leary or his entry into the mortgage market. My only issue is with any broker/banker making blanket statements about clients in general.
I had hoped to be riding through the woods Saturday afternoon, I suppose I will be at Canada Place instead.
I second the refund idea.
David what’s his name is not who I paid $800 for. If anyone starts a petition against CAAMP on this, I will sign it.
He can’t escape the legacy he made for himself : “Doesn’t care how, the goal is to make money”
I would pay to not see him speak :)
That sucks that he was cancelled. I find him highly entertaining and I like his business outlook from what I have read and seen on TV.
He is probably laughing/licking his chops at the fact that there was such outcry from a few frightened individuals who fear they have something to lose with his involvement in the industry. Could be one reason he’s getting involved. If O’Leary has a vested interest in his own brokerage, I can’t see how that is a negative for the industry.
Seriously, how can an event organizer sell 1000 tickets and then cancel its most important speaker? Just because he’s starting a mortgage company??? It’s Kevin O’Leary for Chrise sake, not Joe Broker from Nowheresville! They should have stood their ground and let the guy speak. I was looking forward to seeing Kevin and Amanda bickering on stage like an old married couple. Now I’m seriously considering not even going.
Fantastic Article Rob!
Rob, this was a very well thought out article. Everything you said was true.
Here’s the thing: there will be change. From change always comes winners and losers. Now when I say “loser” I don’t bad people; likely most are great people BUT they backed a horse that didn’t even come in third place.
I am on record as saying there will always be a place for a full service, standard rate mortgage broker but if you are getting towards the twilight of your career or just starting in the business these changes in rate discounting and DTC mortgage brokerage are not a comfort.
If you own a mortgage brokerage or a broker network that depends on team building, recruitment and adding bodies to the organization to grow, then certain changes that makes life harder for the new person or the less sophisticated broker is harmful economically.
This is just the way business works: change helps some and hurts others, just ask RIM how the first iPhone changed their corporate lives.
So while Rob is dead right and most of the comments here that support adding a new competitor; not everyone will feel the same way and many have good reason to feel that way. If Kevin had spoken at the meeting and been booed, I would have felt bad but I would have understood.
Rob,thanks for presenting a balanced view….new entrants into this space are a good thing
Well Done Rob, as always you are right on point. I gained some good perspective and a good reminder to breathe and think when faced with industry goings on.
Yep O’Leary was definitely the big draw for me. And now I’m paying $500+ for an event that has a lot less draw for me, because some people can’t handle the heat.
Focus on your own business model and play the hand you were dealt.
Thank you Rob. Another well thought out article. Like him or not, with all the drama surrounding this, you can bet the theatre room at CAAMP would have been packed to hear what he had to say.
If I thought I’d get a refund I’d ask for one but I know it isn’t going to happen. KO was the #1 attraction by far. This whole fiasco was such a waste. I’m thinking this is probably the last CAAMP conference I attend.
I was all for hearing that Kevin O’Leary had his own mortgage company coming out. I even left a comment on this blog saying so. And make no mistake, I’m not a huge fan. But while you do say that this story is not in defense of O’Leary, it certainly seems that way. And why shouldn’t brokers get their backs up a bit, if as critics are saying, he’s critical of us. I agree that people probably aren’t giving Kevin O’Leary a fair shake in the business. But let’s be honest. He rarely extends it towards others himself.
WHAT is wrong with people! Did you actually read Rob’s article? Why do some people feel compelled to trash someone? CAAMP didn’t fire O’Leary!!! This is plain and simple. O’Leary backed out, due to all the negative comments from this industry. NOT because CAAMP asked him to. It’s a thankless job being a volunteer in this industry for CAAMP and putting the conference together and many other industry events is hard work. There is no doubt that those individuals who throw garbage at the organizers very likely have never contributed towards building or organizing events at CAAMP for the good of the industry, I have given countess hours , away from my business and it’s generally rewarding experience. Thank god I’m not part of this years committee….because its clear to me people in this industry don’t appreciate or recognize the effort and feel its necessary to blame CAAMP for this outcome. O’Leary resigned because of the industry unprofessional conduct. Plain and simple, if you don’t appreciate the value of the conference, excluding O’Leary, don’t come. We only need individuals who collectively support the industry and all those who work tirelessly to put this event together,
I find it utterly ridiculous this has now turned from an Oleary bashing into an opportunity to trash CAAMP. O’Leary resigned. That is an unfortunate outcome of the bashing and negativity this industry created, it is NOT as a result of CAAMP or the VOLUNTEER conference committee negligencebeing forced to make any decisions. After reading more negative comments on this issue for the 3rd day I. A row, I had a quick look at the line up of key note speakers ……and wow! There are some great events planned . O’Leary would have been a nice touch, but clearly is not THE attraction of the year?? Hats off to Boris Bozic, the conference chair and his committee who no doubt worked their \||~% off again this year to put together an event that the majority of us get tremendous value from and enjoy the fruits of your labour. If I’m not mistaken, the conference won an award of some sort. So, hope you all ignore the negative comments and trash talk. I for one am looking forward to my 12th conference, no doubt it will be better than the previous 11. I hope all those who post this garbage sign up to organize next years conference, I certainly won’t….way too much heat and nonsense .
Rob,
I always appreciate your perspective and your continued contributions to our Industry.I’d just like to make the following point for clarification:
I cancelled our sponsorship of Kevin O’Leary because he is selling mortgages to the public and therefore will become a competitor. I don’t believe Scotiabank would sponsor Toronto Dominion and that makes perfect sense.
If Kevin in fact becomes a lender and develops a compelling product that is good for the consumer then we would be very interested in learning more and supporting him like we do any other lender.
I reached out to Caamp numerous times last week for clarity around his model,and asked Amanda Lang directly on Nov 12th if Kevin was a broker or a lender and if she could tell me about his plans. Her response was she couldn’t, and i’d have to ask Kevin directly.
Also a month earlier I emailed Kevin directly via his http://www.kevinoleary.com and told him I would be interested in chatting about his foray into the mortgage business…..again, no response.
Rob, in your email to me last night you had said ” he is a tough guy to reach, i have been trying for two years.
It is still my personal belief regardless of the flurry of information and comments recently that his initial intentions were to bypass broker channel and offer his mortgage products direct to consumer via a sales centre.
And that is fine because there are many different models and i support free enterprise.
I, on the other hand am not hard to reach. Kevin if you decide you would like to share your model with me directly my cell number is 604.240.0163.
Why so many people are reacting to this story? Welcome to capital society.Every one is looking after their best interest.Life goes on…my two cents!
Please come and listen to 5 dynamic speakers including Kevin O’Leary about Wealth Building Canadian Real Estate Expo on November 24th,2012 at Pan Pacific Hotel to learn and network with Canadian Real Estate professionals.
Hi everyone,
I want to convey thanks to all of you who posted and emailed your feedback today. I always read every message and am enormously appreciative of them.
Gary, Thanks for your comments and DLC’s contributions as well. Kevin’s broker distribution intentions were central to this debate and it was unfortunate that not everyone could be on the same page before decisions were made.
Regarding the CAAMP conference, it’s going to be a tremendous event choreographed to a T as it always is. I’d echo the comments about the selfless dedication of the CAAMP Forum staff and volunteers. They are about to put on the year’s premier industry show, bar none.
I think it’s safe to predict that virtually every attendee will walk away with at least one significant $-making idea. If you have time for just three events, Rob Daniel, Mitch Joel and Scott Stratten, in particular, will be overflowing with usable data and marketing ideas. Just please don’t take my seat in the front row! LOL. Cheers…
It sounds like you took action before you had all the facts. I find it hard to believe you couldn’t reach O’Leary’s people when you are the sponsor and organized the meet and greet with him. Did you think about calling his speaking agency, Alex Kanjeev, Mark Olkowski? You could have reversed your decision once you learned his intention to use brokers but you didn’t.
Avoid having your ego so close to your position that when your position falls, your ego goes with it. -Colin Powell
Well said Rob
The light shines on the mortgage industry this week in Vancouver.
Let’s celebrate together and demonstrate to everyone the great service that mortgage brokers provide to the mortgage consumer.
I hereby declare that the petty bickering is over!
See you in Vancouver.
Rob, excellent summation, and calm rational commentary to an otherwise everyday business situation. I am often reminded of an interesting quote”, You may not want to go fishing with him on the weekend, but probably will want to do business with him Monday-Friday”! It’s just business.
Who knew that mortgage broker national conferences could be so entertaining?
Lighten up people. O’leary is an entertainer first and foremost. I only wish F.I. or CMHC national conferences would be as interesting…zzzzz.
Deja vu for me.Some brokers forget CAAMP is a mortgage professional, not broker organization. Even if Mr. O’Leary’s company competes with brokers he has a right to be heard. While I agree one doesn’t wish to sponsor a competitor, there are bank members of CAAMP that don’t deal with brokers. Remember “Keep your friends close and your enemies closer”.
Best industry conference I have been to across the board. Partnering with The art of marketing was brilliant. What a great opportunity for our industry to hear from some of the most amazing minds and game changers impacting all biz.
Great job CAAMP
Kevin O’Leary is alright and I think he’s a great business man. You have to take what he says with a grain of salt, but that’s what makes him so great. He obviously knows what he’s talking about and has a lot of great experience. I recommend checking him out on Twitter. https://twitter.com/olearyfunds
Are some of you blind or just ignorant? O’leary Mortgage is like Capital Direct, and like them they are a lender and a broker. In essence they are a competitor. Here is how their business model works. Behind them is an income fund (or something similar) that they run. Instead of using services like Paradigm they decided to control how they originate these money. Potential clients call in and they pick the best clients to offer “their” mortgage. The clients who they believe are not “suitable” for their mortgage they send to their “certified partners”, which is nothing more then sending it as a broker through the broker’s channel. So is O’leary Mortgage a competitor? YES!!! Here is how you play on their field. Create a MIC or Income Fund ( which most of use don’t have the capacity to do) do your own origination or hire Paradigm, but at the same time send “your” rejects through the brokerage channel. Is this new? Hell no. There are many brokerage like this out there. My opinion O’leary Mortgage IS A BROKERAGE with their own fund. Do correct me if I am wrong.
It’s common knowledge that O’Leary has a brokerage. It says so right on his website:
“Brokerage License #: 12319”
Furthermore, all brokers compete against each other. What is the problem?
No offense but your post appears to be pointless.
Here’s the way it works in;
a) the world of communism vs.
b) true capitalism where the best product wins
…if Kevin is servicing the ‘dominant’ market segment (usually a smart move) AND providing plenty of support for his product/services (required for growth) AND is building a large TEAM and hence, an expanding TERRITORY (required to obtain branding, experience, product improvements and eventual dominance or at least a great position), then he will thrive and is an asset to customers and the industry as a whole. I personally knew a man who built the 3rd largest mortgage company in the U.S. at that time and he followed much of what I taught him along the way.
…knowledge, value, service, support, treating customers like ‘family’ and treating associates/brokers and employees like ‘lovers’ is what its all about. Companies that do that scare competitors.
…and in a communist society, scared competitors will bleed bad press and drum up vague questions, rumors and speculation to undermine success.
…the way to beat that consistently (scares them more) is to provide at least ONE LINK/LITERATURE/FILM/RADIO clip that is ALL ABOUT THE DATA…what people want, how we treat them, what the trends and graphs show and how we’re incorporating the future into our firm TODAY. During such a ‘dry, data filled presentation’ its easy to turn detractors into whining clowns…or better yet…allies.
You do that using the Abraham Lincoln approach; “Have I not destroyed my enemies when I make them my friend?” and there are ways to accomplish that task easily as well.
It starts with presenting the truth…but also involves reducing or eliminating finger-wagging. Tis better to say “Well, Joe Banker brings up a very important issue and the data suggest that THIS, and 1(5, 10) studies of actual historical data clearly shows THAT. (THANKS JOE FOR BRINGING US THIS OPPORTUNITY TO EDUCATE OUR CUSTOMERS AND THE INDUSTRY…chuckle).
Then call Joe Banker and say “By the way, it appears we may have a new line item revenue stream for your firm. Are you free for lunch next Wednesday?” and watch how fast Joe becomes an ally.
Building these alliances – both with brokers and the bigger players – can’t hurt…
Fyi OLeary Mortgage license has not been renewed according to FSCO
http://www5.fsco.gov.on.ca/mbsweblist/ShowLicence.aspx?12319~_EN