FEATURE / BROKER HEADS
MARK KERZNER, PRESIDENT, TMG THE MORTGAGE GROUP The broker channel has always been and continues to be resilient. Despite the market challenges the industry has faced beginning in 2008 and continuing until today, we have maintained market share because brokers represent the best solutions for consumers looking for mortgage financing. At one time, some thought that a broker’s success and advantage was based on offering better rates, but that’s not been the case. We continue to lead share with first-time homebuyers and have actually increased share over the past five years with both refinancers and renewers. As brokers, one of our key value propositions is choice. This involves finding the right lending solution for each client’s unique needs. In this market, we continue to prove ourselves as the clients best advocates. We must keep up-to-date with all the changes to ensure the needs of our clients are met. Much like the speed of changes in technology, our business has also evolved at a rapid pace. Arming ourselves with training and support tools are vital for our continued success. Education has become one of the pillars of TMG and we are recognized as one of the market leaders in training. As a company, TMG constantly explores ways to use technology to help our brokers be more efficient and effective. More than anything else TMG is its people. From the most dedicated and passionate staff (winners of the 2013 CMP Employer of Choice Award) to its professional, empathetic and caring brokers, TMG represents leadership in the broker channel and strength and stability for consumers.
COLIN DREYER, PRESIDENT/CEO & JOHN KELLY, COO, VERICO Generally VERICO and members of the VERICO Network are “glass 3/4 full” type people. We feel very positive about the future of our industry, profession and organization. Notwithstanding, we are well aware that changes in the regulatory environment have resulted in significant challenges for our lending partners, and consequently this has driven change in the broker channel too. Regardless, the challenges facing the mortgage broker industry today are, by and large, the same as they have always been, namely remaining competitive and relevant with our customers and our lenders. So long as Canadians continue to value the professional services offered by brokers, and brokers continue to provide competitive products and servic-
es to customers, we are in great shape. Ensuring that this always happens relies on a number of factors. The first key factor is ensuring that our lenders are able to profitably provide us with competitive products for our customers. Without competitive mortgages, where would we be? Today, there are fewer lenders overall and less of Canada’s most well-known bank brands that deal through brokers – and that is a challenge for us. These challenges are a result of regulatory and capital market changes impacting lender liquidity and opportunity. Brokers didn’t drive these changes, and so unfortunately we can’t really solve it. That being said, we can be an important part of the solution for our lenders. Supporting efficiency and cross selling is a big part of increasing channel productivity. The second key factor is ensuring we offer value added services to our customers that distinguish us from other sales and retail channels we compete with, whether online, bank branch, tele-direct or roving rep. Simply offering low rates won’t cut it in the future… All lenders, including ours, can do that directly. A broker’s secret weapon is expertise, professional advice, convenience and full service delivery. That’s why Canadians should prefer getting their “great rate” from a mortgage broker rather than a competing channel. Increasingly, consumers have become discerning shoppers of mortgage and banking solutions. Yes they expect great rates, and aren’t sheepish about asking, but they also want the experience to include convenience, unbiased advice, and a sense of recourse and security. Building long term relationships with customers is the key. This requires a shift away from the hunt, kill, eat and repeat mentality and methods of yesterday to a customer base farming approach. All of which requires a significant investment in technology and retraining for all brokers VERICO has invested in industry leading technology and training that helps our brokers deliver the kind of customer experience our brokers need to offer in order to compete and win in today’s market. This technology, called BrokerBase, automates the CRM and follow up activities that ensure customers keep our brokers front of mind for referrals and repeat business. It also helps our brokers and suppliers cross sell - which enhances the points of relevancy and connection to our professional services. Where there are challenges, there are opportunities. BrokerBase supports VERICO brokers to capitalize on these opportunities and ensure continued growth in their business in the broker channel.
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