Comments on: Candidly Speaking – Part 2 https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2?utm_source=rss&utm_medium=rss&utm_campaign=candidly-speaking-part-2 Commentary, Opinions, Thoughts and Discussion on Current Events, Politics and The Mortgage Industry Fri, 11 Mar 2016 16:33:16 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Sharon B https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-36 Sharon B Fri, 08 Jul 2011 23:32:59 +0000 http://boristalks.wordpress.com/?p=201#comment-36 Hi Boris, I just returned from the Verico conference in Vegas and heard you speak on this very subject. I also worked in branch banking for many years ( 1979 to 1998) and understand the mindset. I have been a mortgage agent/broker since 1998, and I have a huge dedicated client base, some who would not even think to renew before they met with me and listened to my suggestions on the best option. Thats why I continue to be sucessful and a leader in my market year after year. At the end of the day there is plenty of business for all of us:) Hi Boris,
I just returned from the Verico conference in Vegas and heard you speak on this very subject. I also worked in branch banking for many years ( 1979 to 1998) and understand the mindset. I have been a mortgage agent/broker since 1998, and I have a huge dedicated client base, some who would not even think to renew before they met with me and listened to my suggestions on the best option. Thats why I continue to be sucessful and a leader in my market year after year. At the end of the day there is plenty of business for all of us:)

]]> By: Boris Bozic https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-35 Boris Bozic Fri, 08 Jul 2011 16:48:53 +0000 http://boristalks.wordpress.com/?p=201#comment-35 Hi Sharon, I agree it’s costing the lenders to retain a portion of these customers. I guess that’s any indication to what lengths lenders will go to retain the customer. I also agree that the customer may have different ideas. However, the more hooks a bank puts into a mortgage customer, i.e. selling ancillary products, the higher their retention rate is. I used to work for a major bank, I’ve seen the statistics. Sharon, not for a moment am I suggesting it’s doom and gloom. What I am suggesting is…”it is what it is”. Hi Sharon,
I agree it’s costing the lenders to retain a portion of these customers. I guess that’s any indication to what lengths lenders will go to retain the customer. I also agree that the customer may have different ideas. However, the more hooks a bank puts into a mortgage customer, i.e. selling ancillary products, the higher their retention rate is. I used to work for a major bank, I’ve seen the statistics. Sharon, not for a moment am I suggesting it’s doom and gloom. What I am suggesting is…”it is what it is”.

]]> By: Boris Bozic https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-34 Boris Bozic Fri, 08 Jul 2011 16:44:42 +0000 http://boristalks.wordpress.com/?p=201#comment-34 Hello CE, Thanks so much for reading my blog and for taking the time to comment. With respect to your comments that I’m warning the broker channel about customer retention, that’s exactly what I was attempting to do. Being in business requires that we identify potential threats, and then we have to figure out a solution. I go through this exercise on a daily basis. I have to because the completion is fierce, and my challenge is to stay one step ahead of the game. I think it’s no different for mortgage brokers. Brokers should spend time on identifying potential threats to their own business. The key of course is what action steps do you put in place to mitigate those risks. As for Merix and customer retention, our success in this regard is your reward. I know I’m biased but I can’t think of a better CRM program than the Merix trailer fee model. We retain the customer, and then we pay you for it. This is a win, win, win. The customer, the broker and Merix all get what they want. With respect to minimum volume requirements, funding ratio’s and preferential pricing, I can only speculate as to why other lenders are doing this. As for Merix, we did away with minimum volume requirements over two years ago. It was almost 2 ½ years ago that we determined that the market was headed in this direction. We determined that many brokers would not be able to deal with lenders directly, and they would be forced to pool their business. Yet many of these brokers provide good quality business for lenders. This was an opportunity for Merix, as well as the mortgage broker. The one thing we didn’t change is the minimum efficiency ratio. There’s a direct co-relation between efficiencies and service levels. CE, the one thing I’ve learned after all these years in this business is that brokers are survivors. Brokers look at the landscape and say, “we don’t make the rules but we’ll figure out a way to get ours”. They always do. I don’t think it will be any different with two issues I raised. Cheers, Hello CE,
Thanks so much for reading my blog and for taking the time to comment. With respect to your comments that I’m warning the broker channel about customer retention, that’s exactly what I was attempting to do. Being in business requires that we identify potential threats, and then we have to figure out a solution. I go through this exercise on a daily basis. I have to because the completion is fierce, and my challenge is to stay one step ahead of the game. I think it’s no different for mortgage brokers. Brokers should spend time on identifying potential threats to their own business. The key of course is what action steps do you put in place to mitigate those risks. As for Merix and customer retention, our success in this regard is your reward. I know I’m biased but I can’t think of a better CRM program than the Merix trailer fee model. We retain the customer, and then we pay you for it. This is a win, win, win. The customer, the broker and Merix all get what they want.

With respect to minimum volume requirements, funding ratio’s and preferential pricing, I can only speculate as to why other lenders are doing this. As for Merix, we did away with minimum volume requirements over two years ago. It was almost 2 ½ years ago that we determined that the market was headed in this direction. We determined that many brokers would not be able to deal with lenders directly, and they would be forced to pool their business. Yet many of these brokers provide good quality business for lenders. This was an opportunity for Merix, as well as the mortgage broker. The one thing we didn’t change is the minimum efficiency ratio. There’s a direct co-relation between efficiencies and service levels.

CE, the one thing I’ve learned after all these years in this business is that brokers are survivors. Brokers look at the landscape and say, “we don’t make the rules but we’ll figure out a way to get ours”. They always do. I don’t think it will be any different with two issues I raised.

Cheers,

]]> By: Sharon B https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-33 Sharon B Fri, 08 Jul 2011 10:18:15 +0000 http://boristalks.wordpress.com/?p=201#comment-33 I don't disagree with any of the comments here. However, while the Bank may feel they own the client, the client may have different ideas. Banks may be winning right now on retention , but it is costing them big time as they offer huge discounts, in some cases pay penalties, and in one case I was involved in paid the clients CMHC fee as well as a rate of Prime minus 1% . I had offered client Prime minus 1%, but was not going to pay the CMHC premium. I'M sure there was lots of profit in that deal for RBC LOL( 5 year Amort , customer here on a 3 year work visa) I don’t disagree with any of the comments here. However, while the Bank may feel they own the client, the client may have different ideas. Banks may be winning right now on retention , but it is costing them big time as they offer huge discounts, in some cases pay penalties, and in one case I was involved in paid the clients CMHC fee as well as a rate of Prime minus 1% . I had offered client Prime minus 1%, but was not going to pay the CMHC premium. I’M sure there was lots of profit in that deal for RBC LOL( 5 year Amort , customer here on a 3 year work visa)

]]> By: CE https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-32 CE Fri, 08 Jul 2011 04:44:32 +0000 http://boristalks.wordpress.com/?p=201#comment-32 In a way this sounds as though you're giving the Broker Channel a warning.... the banks are coming, including Merix when it comes to customer retention. A key selling feature that Merix currently prides and promotes itself to Brokers is the fact that Merix is always going to promote the Broker as being the first contact to the client and refers the client back to the Broker. There's no crystal ball on what the future will hold with Merix, but as an example: FirstLine started as a Broker-only focused channel and built a huge book of business, turned huge profit and got a great many of Brokers secured in their clutches with status levels, discounts and points programs. Once you're in that deep, it's really hard to spread the business around, resulting in reduced options for your clients. Isn't the job of the Broker (both ethical and professionally sound) to put the client in the best possible mortgage given their situation? FirstLine's tune has since changed and they are VERY aggressive with existing clients are not the market leader in the Broker channel any longer. Greed has taken over, they have forgotten to built their success and they are losing market share and long term loyal Brokers who have seen the clear picture of the future. I sincerely hope that Merix doesn't follow in these footsteps! Why is that so many Lenders offer deeper discounts to these status Brokers or require minimum funding amounts or ratios? Given the decline in clients that are available and the reduced amount of new mortgages to go around, shouldn't the Lenders be happy with what they do get rather than put minimums in place? In this market, it just doesn't make sense to me! Lenders are forcing Brokers to operate in a way that is opposite of what we are meant to do! In a way this sounds as though you’re giving the Broker Channel a warning…. the banks are coming, including Merix when it comes to customer retention.

A key selling feature that Merix currently prides and promotes itself to Brokers is the fact that Merix is always going to promote the Broker as being the first contact to the client and refers the client back to the Broker.

There’s no crystal ball on what the future will hold with Merix, but as an example: FirstLine started as a Broker-only focused channel and built a huge book of business, turned huge profit and got a great many of Brokers secured in their clutches with status levels, discounts and points programs. Once you’re in that deep, it’s really hard to spread the business around, resulting in reduced options for your clients. Isn’t the job of the Broker (both ethical and professionally sound) to put the client in the best possible mortgage given their situation?

FirstLine’s tune has since changed and they are VERY aggressive with existing clients are not the market leader in the Broker channel any longer. Greed has taken over, they have forgotten to built their success and they are losing market share and long term loyal Brokers who have seen the clear picture of the future. I sincerely hope that Merix doesn’t follow in these footsteps!

Why is that so many Lenders offer deeper discounts to these status Brokers or require minimum funding amounts or ratios? Given the decline in clients that are available and the reduced amount of new mortgages to go around, shouldn’t the Lenders be happy with what they do get rather than put minimums in place? In this market, it just doesn’t make sense to me! Lenders are forcing Brokers to operate in a way that is opposite of what we are meant to do!

]]> By: Boris Bozic https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-31 Boris Bozic Thu, 07 Jul 2011 19:43:49 +0000 http://boristalks.wordpress.com/?p=201#comment-31 Hi Greg, thank you so much for the kind words. Every organization, and in this case an entire industry, has to be careful to not allow hubris to set in. There’s no greater risk to a business than believing it can never happen to “our business”. By the way, I love the play on words. I wish I had thought of it. Cheers Hi Greg, thank you so much for the kind words. Every organization, and in this case an entire industry, has to be careful to not allow hubris to set in. There’s no greater risk to a business than believing it can never happen to “our business”. By the way, I love the play on words. I wish I had thought of it.

Cheers

]]> By: Greg Williamson https://tothepointwithbozic.com/mortgage/candidly-speaking-part-2#comment-30 Greg Williamson Thu, 07 Jul 2011 16:04:26 +0000 http://boristalks.wordpress.com/?p=201#comment-30 Boris, (insert me standing and clapping) Very well done. I am loving your blog and as one industry blogger to another I am certain your candour will serve you well. I as well am concerned. As a quasi leader in the broker channel I am screaming from the hilltops as well that we as brokers need to change our ways. My biggest concern is apathy or ignorance. Someone of your stature in the lender field laying it CLEARLY on the line for brokers will help. As I say "The Game is Changing and we should give a SHIFT" Thank-you Boris. Boris, (insert me standing and clapping) Very well done. I am loving your blog and as one industry blogger to another I am certain your candour will serve you well.

I as well am concerned. As a quasi leader in the broker channel I am screaming from the hilltops as well that we as brokers need to change our ways. My biggest concern is apathy or ignorance. Someone of your stature in the lender field laying it CLEARLY on the line for brokers will help.

As I say “The Game is Changing and we should give a SHIFT”

Thank-you Boris.

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