The lending giant announced an exclusive partnership
Rocket Mortgage Canada’s decision to roll out its products to third-party mortgage brokers has been described by the company’s executive vice president Bekim Merdita (pictured) as one that reflects its “passion” for the broker community, with the move having been some time in the making.
The company announced last week that it had entered an exclusive partnership with BRX Mortgage to pilot its Rocket Mortgage Pro offering, marking the first step in an expected wider expansion to other independent brokerages.
Merdita said the company’s experience in the brokering space – it originally functioned as a brokerage as Edison Financial, later rebranded to Rocket Mortgage Canada – had given it an important insight into the nuances of the sector.
“We started out as a mortgage broker here in Canada before we ever became a mortgage lender and I think what that allowed us to do is refine our processes over the last four-plus years, such that we know what a great lending product looks like,” he told Canadian Mortgage Professional.
“And once we felt like we had achieved a great lending product, it only made sense to help other groups, other brokers grow their businesses through it as well.”
Company takes innovative approach to turn times
The initial offering arrives after a careful period of analysis on the key components of a quality lending product. A particular area of focus was turn times and how to make those as fast and problem-free as possible.
“We thought in order for us to go to market in a very competitive space, we would have to have the best turn times in the industry,” Merdita said. “We started talking about measuring our turn times in hours, not days like everyone else. And for us, [that] meant that we needed to have the data, we needed to have the technology systems to support that data.
“And we needed to have the people that allow us to go out and execute, and truthfully once we felt confident in the fact that we would deliver the best product in the market, that’s when we said ‘We should turn this product and allow brokers to work with us.’”
BRX Mortgage, led by Scott Peckford and Denise Laframboise, seemed a natural fit for the program’s initial pilot, with Merdita emphasizing the companies’ cultural alignment and mutual care for Canada’s broker community.
The training offered by BRX, as well as its centralized controls for deal quality, underwriting, and support for brokers in helping grow their business were key factors behind its selection by Rocket as a partner in the program.
When will Rocket Mortgage Pro be available to other brokerages?
The timeline for expansion to other brokerages, meanwhile, remains unspecified for now. Merdita said the company is eager not to rush out the product before it’s been adequately tested in the broker space.
“We want to make sure it’s the best product to go to market,” he said. “We’re highly intentional about how we’re showing up and who we’re showing up with. BRX is committed to giving us the critical feedback in the early days to tell us what we need to do better so that we can best serve brokers.
“And I think once again, once we feel comfortable that we’re offering the best product in market, it only makes sense for us to open that product up to other brokers in the broker community.”
Speed and service are two crucial considerations for Rocket when it comes to value proposition, with Merdita viewing its measurement of turn times as a significant step for the industry.
Brokers, he said, are “used to waiting multiple days to hear back from their lenders, waiting multiple days to have any documents submitted, reviewed, waiting extended periods – typically three to four weeks to reach ‘Broker Complete’ status on a file.
“We’re doing that in less than two weeks. We’re getting back to our brokers who submit deals to us in less than one day. And that’s a massive leap forward.”
While the mortgage market has seen a significant cooldown since the days of record-high origination volume during the COVID-19 pandemic, Merdita said prospects remain bright for brokers and agents with the right approach to building and growing their business.
National Bank economists Kyle Dahms and Alexandra Ducharme noted significant improvements in housing affordability, attributing the boost to softer home prices, rising incomes, and falling mortgage rates.https://t.co/J2gTgI73Yq#mortgagenews #housingmarket
— Canadian Mortgage Professional Magazine (@CMPmagazine) May 18, 2024
“It’s no secret that the market isn’t as great as it was a couple of years ago, but for the brokers who are focused on training, who are focused on the consumer experience, on making sure that they have the right technology to drive their businesses forward… I think we’re going to serve those brokers really, really well,” he said.
“Our ability to work with brokers who are growth minded and grow alongside of us is really going to be an exciting story.”
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