The Federal Competition Bureau (CB) is investigating Dominion Lending Centres (DLC) Inc., one of Canada's largest mortgage brokers. The CB seeks a court order forcing DLC to release confidential records.. Home Office .“The draft order would require Dominion Lending Centres to produce records pertaining to nearly every aspect of its operations amounting to what is essentially a fishing expedition,” counsel for DLC wrote in an exchange of letters with the CB..“The draft order is plainly unreasonable.”.According to Blacklock’s Reporter, DLC operates a nationwide network of 7,749 brokers who manage $78.5 billion in mortgages annually, accounting for approximately one-third of the $200 billion market..As of Jan. 1, 2022, DLC started imposing a $200 service fee for processing mortgage applications from competitors who do not use its custom software..The fee was only meant to recover higher costs of having staff handle “non-standard transactions,” wrote DLC lawyers at Blake, Cassels & Graydon LLP of Toronto..The value of the fees was incidental, counsel wrote the court, “In 2022 Dominion processed approximately 1,000 non-standard transactions recovering costs of approximately $200,000.” .DLC that same year had revenues of more than $70 million..Fees were aimed at rival brokers who sought a “free ride on Dominion’s investments in developing its technology and establishing, growing and nurturing its franchise system over a period of many years,” wrote counsel..However, the CB questioned whether DLC practices breached anti-trust law..“The commission has reason to believe Dominion Lending Centres is engaging in conduct which impedes the ability of mortgage brokers and agents to use third-party technology solutions to submit mortgage applications to mortgage lenders,” said a CB affidavit..The CB called DLC one of the “largest in Canada” in the mortgage brokerage trade..“This inquiry seeks to determine whether Dominion is employing a strategy that harms competition among providers of mortgage technology platforms,” said the CB..The CB affidavit explained the workings of the industry..Mortgage brokers receive commissions from banks when they refer new customers seeking home loans..These brokers join large broker networks such as DLC and share the fees with the company..The anti-trust investigation has been underway since Jan. 9, 2022..DLC said it first learned of it last July 4.
The Federal Competition Bureau (CB) is investigating Dominion Lending Centres (DLC) Inc., one of Canada's largest mortgage brokers. The CB seeks a court order forcing DLC to release confidential records.. Home Office .“The draft order would require Dominion Lending Centres to produce records pertaining to nearly every aspect of its operations amounting to what is essentially a fishing expedition,” counsel for DLC wrote in an exchange of letters with the CB..“The draft order is plainly unreasonable.”.According to Blacklock’s Reporter, DLC operates a nationwide network of 7,749 brokers who manage $78.5 billion in mortgages annually, accounting for approximately one-third of the $200 billion market..As of Jan. 1, 2022, DLC started imposing a $200 service fee for processing mortgage applications from competitors who do not use its custom software..The fee was only meant to recover higher costs of having staff handle “non-standard transactions,” wrote DLC lawyers at Blake, Cassels & Graydon LLP of Toronto..The value of the fees was incidental, counsel wrote the court, “In 2022 Dominion processed approximately 1,000 non-standard transactions recovering costs of approximately $200,000.” .DLC that same year had revenues of more than $70 million..Fees were aimed at rival brokers who sought a “free ride on Dominion’s investments in developing its technology and establishing, growing and nurturing its franchise system over a period of many years,” wrote counsel..However, the CB questioned whether DLC practices breached anti-trust law..“The commission has reason to believe Dominion Lending Centres is engaging in conduct which impedes the ability of mortgage brokers and agents to use third-party technology solutions to submit mortgage applications to mortgage lenders,” said a CB affidavit..The CB called DLC one of the “largest in Canada” in the mortgage brokerage trade..“This inquiry seeks to determine whether Dominion is employing a strategy that harms competition among providers of mortgage technology platforms,” said the CB..The CB affidavit explained the workings of the industry..Mortgage brokers receive commissions from banks when they refer new customers seeking home loans..These brokers join large broker networks such as DLC and share the fees with the company..The anti-trust investigation has been underway since Jan. 9, 2022..DLC said it first learned of it last July 4.
