Counsel Corporation CXSNF

Make up your mind SCB

[privateone]

They used to offer trailer commissions to brokers.
They terminated trailers as they were too expenssive.
The November 14th PR talks of the expense of trailers with regard to renewals.
SCB is now launching another trailer compensation model.

Aside from that the originanations are down 22% (I believe I forecasted a 30% drop), return on equity has plummeted.

Another important number is the mortgages under administration. It is down, sure by only 1%, but it is down.
This means that for the $1.70 billion of new business, $2.34 billion walked out the door.
That is very poor give the MUA should be growing.
The shrinking number is due to their inability (now partially solved) to refinance mortgages, including their own clients.

The mortgage market is constantly evolving and the likes of SCB are getting hammered and it will get worse as people move less (due to inability to qualify), better retention with current lenders (hard to bring it transfer business), less likely to refinance to from current lender to new (easy to get a borrower to move to a new lender in a refi when the rate is better or comparable).

Mortgage Brokers who cannot get their heads around the evolving market will die off as well.