An industry push to consolidate will ultimately result in as few as two or three mega broker networks in as little as five years, argues one industry veteran, with others suggesting it could ultimately strengthen their usefulness to brokers and clients.
“We already started to see it, consolidation, and it’s going to continue because that’s the direction the industry is moving in – fewer super brokers with a larger number of agents and brokers,” Peter Puzzo, a seasoned agent with Assured Mortgage told MortgageBrokerNews.ca.
The prediction follows a year marked by the further consolidation of network names, most notably Pacific Mortgage Group’s move to fold its MortgageBrokers.com family into its stronger Mortgage Architects brand in the fall.
2011 also saw the company actively push to incorporate another two super broker networks under its expanding umbrella, although that takeover bid was ultimately thwarted.
That notwithstanding, said industry trainer and broker Greg Williamson, consolidation across the board may reflect the fortunes of brokers themselves.
“I suppose consolidation is a by-product of the numbers of brokers going down, and therefore some networks struggle with viability,” he told MortgageBrokerNews.ca.
Ultimately, broker networks are under increasing pressure to prove their worth, a challenge that some are better positioned to meet.
“I think the number one threat to broker networks is re-inventing themselves from a ‘buying group’ to get better rates and compensations to something that helps brokers prosper, otherwise why do I give them some of my commissions?” said Williamson, whose 180 Degrees Coaching will continue with a free webinar series begun in 2011 and focused on the same kind of value proposition building.
“I think naturally some will be better at doing this then others creating stronger and more attractive broker networks, which will prey on the people in the weaker networks,” he said. “From my vantage point sadly, I see many networks just skimming over the surface with respect to helping their brokers prosper, but let me be clear, I think they are well intentioned – they just need to go deeper.”
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