The Competitors Bureau confirms that it has launched an investigation into alleged anti-competitive conduct by dealer community Dominion Lending Centres Inc. (DLC).
No particulars have been offered as to the specifics of the allegations, and the Bureau famous that there’s at the moment “no conclusion of wrongdoing presently.”
“The Bureau requires extra data to find out if the alleged conduct is harming competitors in Canada’s mortgage brokerage business,” the Bureau stated in a press launch. “This consists of inspecting sure practices that restrict mortgage brokers’ capability to make use of the expertise options of their alternative.”
DLC Group is among the nation’s main community of mortgage professionals with over 8,000 brokers in additional than 540 areas. The corporate operates by way of Dominion Lending Centres in addition to its three foremost subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Methods Inc., which operates the corporate’s proprietary connectivity platform Velocity.
Roughly three quarters of DLC brokers submit their offers by way of Velocity, in line with data beforehand offered to CMT by DLC President and CEO Gary Mauris.
As of final 12 months, DLC’s community of mortgage brokers originated $70.6 billion in residential mortgages.
In 2021, Newton introduced the addition of Desjardins Financial institution for submission from Velocity. It additionally stated on the time that DLC and Newton have been working with HSBC Canada on a mortgage program unique to DLC Group mortgage professionals and accessible solely by way of Newton’s Velocity connectivity platform.
CMT reached out to DLC for remark however was referred to its assertion launched earlier within the day.
“We are going to co-operate with the Bureau and can absolutely adjust to the order,” Gary Mauris, Chairman and CEO of DLC, stated within the assertion.
He famous that DLC competes with “many different” franchisors and suppliers of expertise options and assist providers to mortgage brokers in Canada.
“DLC doesn’t consider it’s dominant in any market and doesn’t consider it has engaged in any anti-competitive conduct,” Mauris added.
The Competitors Bureau is an impartial legislation enforcement company accountable for regulating competitors in Canada, and is accountable for guaranteeing that markets function in a aggressive method.