Over the last few weeks there’s been chatter in the industry about a lender in the mortgage space deciding to no longer offer trailer fees. The lender in question articulated their rationale for doing so, and it’s not for me to question their decision or pass judgement. Over the last two weeks I’ve been asked the following two questions, on a number of occasions.  Firstly, what do I think about their decision? Secondly, are we contemplating the same?  The answer to the first question is “Interesting, but I don’t really care”.  The answer the second question, “Absolutely not”.

The notion that Merix might consider revisiting its core value proposition, and no longer offer trailer fees to mortgage brokers, would only come to pass if Merix decided to rip the soul out of the company. Trailer fees are a part of the Merix DNA.  Trailer fees are what set Merix apart from its competitors. Merix is the pioneer of trailer fees. We can debate the economic merits of trailer fees versus being paid up front. But one thing that is not up for debate is the commitment Merix has to trailer fees. I’m not one to say “never”, but as I sit here today, in the role that I occupy, trailers are here to stay. (more…)

I think we’ve all heard the term “To Big to Fail”. The term became fashionable at the onset of the sub-prime crisis in 2008. Some financial institutions were deemed too vital and important to the global economy, therefore, they would be provided with a safety net by governments. Other institutions which were deemed NOT to be “Too Big to Fail”, Darwin’s theory applied – it was survival of the fittest.  We could debate the fairness of the “Too Big to Fail” classification, but that will have to wait for a future post. Based on what has transpired over the last two weeks I really do believe there’s another subset of characterization for handful of organizations, like FIFA.

FIFIA has been in the news for last few weeks, and even non-soccer fans can’t help but be drawn to all the stories off corruption, bribery, kickbacks and basic flaunting of international law. To be fair, FIFA, the world’s governing soccer authority, is not alone. My definition of “Too Big To Care” is fairly simple; “no action is so abhorrent that it will impact us financially”. What other entity fits that category? How about the NFL? Before you suggest that I should take a saliva test, here’s the simple truth. The NFL – National Felons League is not impacted financially even though it employs murderers, drug dealers, drug addicts, wife beaters and child beaters. The NFL has demonstrated that it is bullet proof, apologies for the poor choice of words. Rocked by scandal? Not a sponsor lost or decline in viewership. This year’s Super Bowl set a viewing record. The NFL is a money making machine, and sponsors and fans are willing to set aside their moral outrage every Sunday, or when filling out their office pool. The NFL has got this down to a science. When scandal hits, they pretend they care, for a couple of weeks, and then it all goes away. (more…)