Amid congratulations for Dominion Lending Centres and president Gary Mauris comes speculation on just how long The Mortgage Centre will remain a distinctly separate entity.
Amid congratulations for Dominion Lending Centres and president Gary Mauris comes speculation on just how long The Mortgage Centre will remain a distinctly separate entity.
“My question is, what will Mortgage Centre have as a unique selling proposition, both to brokers who are considering partnering with them and to consumers who are considering working with an MCC broker?” asks Doren Aldana, owner of the Mortgage Marketing Coach. “In other words, what is their unique reason for being?
“If MCC isn't able to come up with – and live out – a compelling answer to that question, its demise or replacement seems inevitable.”
That sentiment reflects that of several other industry players following last week’s acquisition announcement.
John Bargis, a broker with The Mortgage Edge in Richmond Hill, said he doesn’t see the logic behind DLC buying MCC, then allowing the brands to continue operating separately.
“I fail to understand the acquisition of MCC, especially with the intent of running two separate brands with different profit models,” says Bargis. “Nevertheless, I don't see how this news brings any value to the broker industry, which ultimately should be first and foremost on all of our minds with the challenges we all face going forward, big or small.”
Mauris told MortgageBrokerNews.ca last week that he would be keeping MCC intact, and that he was “working to keep the MCC head office team intact going forward,” promising to earn the respect of the MCC agents.
The DLC president added that MCC would continue to operate as an independent brand, and that the purchase would not affect the day-to-day operations of the company.
Bargis questions that vision will come off as planned.
“My personal opinion is that unless the veteran MCC franchise owners see value in the DLC brand and jump on board,” he says, “they will likely choose to go independent, which is technically what they are now anyway without the CIBC brand behind them.”
In fact, Bargis wonders if those already with DLC will now opt for the MCC model.
“What will be interesting to see is if existing DLC franchise owners choose to switch… should it actually be permitted to exist by DLC in the long run?” he says.
