Credit Unions feeling the love.
Credit unions feeling the love Under the newest lending rules, credit unions have emerged as among the most reliable lenders brokers can use. Principal broker and Owner of CLN Mortgages Raj Babber says credit unions, which operate outside the purview of the Office of the Superintendent of Financial Institutions’ regulations, have been instrumental in closing deals. “They’re regulated under DICO [Deposit Insurance Corporation of Ontario], as opposed to OSFI, and they’ve come out and said, ‘As of right now, it’s business as usual,’ and the rates are fantastic,” said Babber. “There’s going to be a big switch to credit unions with brokering or mortgages being sent there. There’s only so much money that can be sent, and they do have quite a bit, but they’re going to be selective of the people they deal with—people who are providing them volume and are efficient with closing, so it’s important to establish a relationship and build a good rapport with them.” Although credit unions may be selective with whom they partner in the broker channel, most reputable brokerages already have strong relationships with them, and they’ll merely need cultivation.
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