It’s official: MonCana has cleared the last of its regulatory hurdles, with its Calgary-based president setting a date to hang out his shingle.
James Clayton, of the MonCana Bank of Canada, told MortgageBrokerNews.ca late last week. “We expect to be open for business later in October.”
The business represents the latest broker channel incarnation for both Clayton and CFO Gerry Wagner. The two also headed ResMor Trust before selling up to GMAC. This new lender will focus entirely on A business, Clayton told MortgageBrokerNews.ca, canvassing brokers from one end of the country to the next. MonCana is headquartered in Calgary, with a broker-service office in Toronto.
“We will be very broker focused and will service everything that we originate,” Clayton told MortgageBrokerNews.ca.
The addition of a new A-lender to the broker channel is seen as a necessary shot in the arm for an originations model increasingly under pressure from the big banks and facing the real possibility of a greater slowdown if the economy retreats into recession.
Rate wars with the banks were blamed for the departure of both Macquarie and Concentra earlier this summer, effectively squeezed out by tight spreads and that heightened competition with the Big Five. Clayton’s business plans are focused on mitigating those effects.
MonCana’s bank status effectively provides it the same ace in the hole as the banks, facilitating cross-sell beyond mortgages, even to use those home loans as a sort of “loss leader.” Clayton, in fact, plans to take advantage of it by offering a host of other products to clients – from RSPs to tax-free savings accounts – through financial advisors and other “deposit brokers.”
“We will be a deposit-taking institution,” he said, on the phone from Calgary, “and that will provide us with cross-selling opportunities, which is part of our business plan. But we’re coming into the market at a fairly low point, so we think that there is going to be fairly good growth over the next three years.”