Credit Unions & Mortgage Brokers: A Practical Guide to Executing a Broker Channel Strategy 

Table of Contents

• Doxim’s Co-Development Initiative and Market Entry Paths for Credit Unions
• Developing Broker Relationships in Your Region
• Four Tactical Approaches Credit Unions Can Leverage
  • Targeted Outreach
  • Strategic Broker Marketing
  • Rate Communication Strategies
  • Leveraging Technology to Streamline the Mortgage Process
• Implement the Right Strategies – Outperform the Competition

This analysis outlines execution paths for credit unions to establish and strengthen relationships with mortgage brokers, enhancing their market position in the Canadian mortgage lending landscape. Building on our previous analysis of the business case for credit union-broker partnerships, we’ll outline a step-by-step execution path, emphasizing the importance of broker relationships and providing practical strategies for market entry and growth.  

Doxim’s Co-Development Initiative and Market Entry Paths for Credit Unions 

Doxim and several of our customers funded a co-development initiative to build a mortgage broker channel integration for Doxim’s retail Loan Origination System (LOS), in 2022. We learned in extensive conversations that beyond the integration and technical efficiency, credit unions with limited or no existing broker business would need to establish a strong presence in the broker channel to get the new volume of leads coming in.

Developing Broker Relationships in Your Region 

From our discussions, we discovered that the biggest criterion for success in the broker channel is building strong relationships with regional mortgage brokers, specifically with High-Performing Brokers (HPB).  

High-Performing Brokers can significantly impact loan volume and cultivating relationships with them, and general brokers, is key for consistent deal flow and referrals.  

Credit unions can develop broker relationships in three ways: 

1. Targeted Outreach: Leverage industry events, association memberships, and regulatory resources to identify and connect with High-Performing Brokers in your target market. 
2. Rate Communication: Understand your credit union’s advantages for brokers, including competitive rates, flexible products catering to underserved segments (first-time homebuyers, self-employed individuals), or exceptional service levels.
3. Technology Advantage: A robust Loan Origination System (LOS), like Doxim LOS, that seamlessly integrates with broker POS systems and their pipes. This ensures efficient application processing, real-time status updates, and a streamlined user experience for brokers. Additional technology tools can be through next generation AI platforms, member facing digital experiences for the broker channel and mortgage renewal tools for switches.
    

By implementing these strategies, credit unions can establish a strong foundation for success in the broker channel. The following section delves deeper into strategic marketing, rate communication, and technology integration strategies to help further optimize your credit union’s broker partnerships. 

Four Tactical Approaches Credit Unions Can Leverage 

A targeted outreach, strategic broker marketing approach, rate communication strategies, and the right approach to technology make up four channels credit unions can use to build strong broker networks.

Attend Industry Events: Participate in tradeshows and conferences organized by national and provincial associations such as: 

National Events

• Mortgage Professionals Canada National Conference – Annual event featuring keynote speakers, educational sessions, and networking opportunities. 

Provincial Events 

• CMBA-ON Conference & Trade Show – Ontario’s premier mortgage industry event with a focus on regulatory updates and market trends. 
• AMBA Conference – Alberta’s leading mortgage industry gathering, featuring local market insights and networking. 
• MBABC Mortgage Conference – British Columbia’s annual event focusing on West Coast market dynamics and industry innovation. 

Leverage Association Member Lists: Obtain member lists from these associations to identify potential broker partners. These lists often include contact information for individual brokerages and agents. 

• Mortgage Professionals Canada – National  association representing mortgage industry professionals across Canada. 
• Canadian Mortgage Brokers Association – Ontario – Provincial association focused on Ontario’s  mortgage broker community. 
• Alberta Mortgage Brokers Association – Representing mortgage professionals throughout Alberta. 
• Mortgage Brokers Association of British Columbia – Serving the interests of British Columbia’s mortgage broker industry. 

Use Canadian Broker Publications and Websites: Market to brokers with rates and other important information about your credit union’s value proposition. 

• Canadian Mortgage Professional (CMP) Magazine  
• Mortgage Broker News
• RateHub Blog  

Utilize Regulatory Information: Provincial regulators maintain licensing information that typically includes contact details for brokerages and often individual agents. 

• Financial Services Regulatory Authority of Ontario 
• BC Financial Services Authority  

Social Media Engagement: Join and actively participate in industry-specific social media groups such as:

• I love Mortgage Brokering’ on Facebook
• ‘Women in Mortgage Industry’ on Facebook

While direct advertising may not be appropriate in these forums, they provide opportunities to engage with brokers and understand their needs.

Targeted Outreach: Create a targeted marketing list using licensing information, association membership lists, and even simple Google searches (e.g., “mortgage brokers in Markham”).

Business Development: Ask your teams to conduct business development for the broker channel. Their role will be crucial in:

• Calling brokerages to introduce the credit union, its lending locations, products, and policies.
• Presenting at brokerage internal meetings.
• Sponsoring webinars with associations to reach a larger audience.

Email Marketing: As relationships develop, create an email distribution list to keep brokers updated on rates, products, and policies.

Our customers emphasized the importance of rate communication and the credit union advantage for maintaining strong broker relationships and driving loan volume. By providing brokers with clear, accessible, and competitive rate information, credit unions can position themselves as preferred lenders and increase the likelihood of closed deals.  

A caveat mentioned by credit unions is that these strategies are geared toward High-Performing Brokers.
A few examples from a credit union in Ontario are below:  

Daily/Weekly Rate Distribution Through Email.
Providing brokers with real-time/daily access to rate information through various channels ensures they can quickly and accurately quote mortgage rates to clients—these foster trust and confidence in the broker-credit union relationship. 

Differentiated Rate Sheets
Creating tiered rate structures based on broker performance allows credit unions to incentivize brokers to increase their business volume and loyalty. Credit unions can attract new partnerships and expand their market reach by offering special promotional rates to new brokers.

Examples: 

• Create tiered rate sheets based on broker volume or quality metrics.
  • Tier 1 (Top Performers): Base rate -0.10%
  • Tier 2 (Consistent Producers): Base rate -0.05%
  • Tier 3 (New Partners): Standard base rate
• Offer special promotional rates for new broker partnerships to drive initial volume, such as:
• A “New Broker Bonus”: 0.10% rate discount on first five deals submitted within 60 days of partnership

Communication

Finding ways to bring brokers together to inform them about your competitive rates is crucial to driving loan volume.

• Conduct webinars explaining the credit union’s rate-setting methodology: Provide transparency into the factors influencing rate decisions.
• Offer rate strategy workshops: Educate High-Performing Brokers on effectively communicating rates to clients and positioning the credit union’s offerings.
• Provide personalized rate consultations: Offer one-on-one sessions with High-Performing Brokers to discuss rate strategies and address specific questions.

A Doxim Customer Use Case: Developing Regional Broker Relationships 

We asked a Doxim customer, a credit union in Ontario with a large broker business to provide their key strategies. Based on their response, and to effectively penetrate specific regions, we recommend you focus on the following:

• Identify Key Brokerages: Target partnerships with influential brokerages in your region.
• Local Events and Sponsorships: Participate in regional industry events and sponsor local community initiatives. This customer hosted a “Lunch and Learn” series in target neighborhoods and sponsored local real estate investment meetups.
• Tailored Marketing: Develop marketing materials and messaging that resonate with local brokers and borrowers. Our customer introduced a first-time home-buyer program and provided informational sessions for those with low credit histories or refinancing.
• Exclusive Regional Offerings: Consider offering region-specific mortgage products or incentives to attract brokers.

Example: Focusing on the Greater Toronto Area (GTA) 

• Attend the CMBA-ON Conference and network with Toronto-based brokers.
• Partner with the Toronto Real Estate Board for joint marketing initiatives.
• Offer a “GTA First-Time Homebuyer Program” with specialized features and benefits.
• Analyze GTA housing market trends to identify opportunities and tailor your product offerings accordingly.

Doxim’s Loan Origination System (LOS) offers a seamless integration with leading mortgage broker channel POS systems like Filogix Expert. This integration allows credit unions to:

• Access new deal sources: Bid onx and accept deals from new brokers.
• Streamline data entry: Eliminate manual data entry by directly importing information from broker POS systems.
• Enhance collaboration: Improve communication and collaboration with brokers.
• Gain valuable insights: Access rich data on new customers to identify cross-selling opportunities.

Implement the Right Strategies – Outperform the Competition 

Utilizing Doxim LOS and its integration capabilities, credit unions can significantly improve efficiency, enhance the broker experience, and gain a competitive edge. When credit unions addopting a comprehensive rate communication strategy, they can also leverage broker satisfaction to, increase loan volume, and  strengthen their competitive position in the market.