The Competition Bureau confirms that it has launched an investigation into alleged anti-competitive conduct by broker network Dominion Lending Centres Inc. (DLC).
No details have been provided as to the specifics of the allegations, and the Bureau noted that there is currently “no conclusion of wrongdoing at this time.”
“The Bureau requires more information to determine if the alleged conduct is harming competition in Canada’s mortgage brokerage industry,” the Bureau said in a press release. “This includes examining certain practices that limit mortgage brokers’ ability to use the technology solutions of their choice.”
DLC Group is one of the country’s leading network of mortgage professionals with over 8,000 agents in more than 540 locations. The company operates through Dominion Lending Centres as well as its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., which operates the company’s proprietary connectivity platform Velocity.
Approximately three quarters of DLC brokers submit their deals through Velocity, according information previously provided to CMT by DLC President and CEO Gary Mauris.
As of last year, DLC’s network of mortgage brokers originated $70.6 billion in residential mortgages.
In 2021, Newton announced the addition of Desjardins Bank for submission from Velocity. It also said at the time that DLC and Newton were working with HSBC Canada on a mortgage program exclusive to DLC Group mortgage professionals and accessible only through Newton’s Velocity connectivity platform.
CMT reached out to DLC for comment but was referred to its statement released earlier in the day.
“We will co-operate with the Bureau and will fully comply with the order,” Gary Mauris, Chairman and CEO of DLC said in the statement.
He noted that DLC competes with “many other” franchisors and providers of technology solutions and support services to mortgage brokers in Canada.
“DLC does not believe it is dominant in any market and does not believe it has engaged in any anti-competitive conduct,” Mauris added.
The Competition Bureau is an independent law enforcement agency in charge of regulating competition in Canada, and is responsible for ensuring that markets operate in a competitive manner.