Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.
Issue link: http://digital.canadawide.com/i/1182216
18 | fall 2019 cmba-achc.ca CMB MAGAZINE Small-Town Trust A conversation with Matthew J. Robinson, CEO and portfolio manager at Ontario private lender Pillar Financial Services CEO CHAT Canadian Mortgage Broker(CMB): Tell us how Pillar get started with private lending? Matthew Robinson (MR): Pillar is currently a major alternative lender in Ontario, but we started out as a small fund designed for our own clients. is is a multi-generational story that goes back more than 30 years to my father, Wayne Robinson, who started a financial planning business in the early 1980s. He quickly identified an opportunity to bring together investors seeking consistent returns with underserved borrowers in the rural mortgage market. When his business partner had a mortgage application turned down by the bank, my father realized that it wasn't a question of money. Instead, it was the bank's lack of familiarity with properties with well and septic systems. Seeing this as an opportunity, my father gathered several people to pool their money and lend to borrowers seeking mortgages in Sharbot Lake, Ontario. He started with a handful of people putting in $25,000 each and grew the business organically over the years, meeting with friends and family and collecting cheques across kitchen tables. It took 10 years of grassroots growth to pull together the first million dollars; today, we have a fund with about $200 million and 600 mortgages. e structure of the business has changed over the years. Today, Pillar is one of three related entities that work hand-in- hand: Frontenac, which is the mortgage investment corporation (MIC) that holds our capital; W.A. Robinson, which manages our investment fund and drives strategy; and Pillar, which partners with mortgage brokers and administers our lending operations. CMB: What is the secret of Pillar's success? MR: It may sound a bit out of place in the financial sector, but one of the keys to our success is our caring approach. As a transitional lender, our goal is always to help borrowers reach a better financial position. We do this by providing short-term mortgages of one to two years that enable borrowers to build or buy a new home and get their finances into better shape so that they can then make the transition to an institutional lender offering lower rates. We also incorporate common sense as a key part of our underwriting process. We take the time to understand the full story behind a prospective borrower's personal and financial situation so that we can make a fair and informed decision on whether to lend. Our focus on the rural market is another important differentiator that has helped Pillar thrive. While many lenders are hesitant to venture outside of Ontario's cities, we feel entirely at home supporting borrowers across the province's small towns and rural communities. We truly understand and embrace this market, which sets us apart. None of this would be possible without trust, which is really the fundamental driver of our success. We have built and sustained a thriving business over the decades because we have earned the trust of brokers, borrowers and investors. When we make a deal, the other party knows that we will deliver what we promised. is kind of trust and goodwill is essential for the long-term success of a business. CMB: Pillar describes itself as a "solutions-based lender" – what does this mean? MR: is means that we work closely with We have built and sustained a thriving business over the decades because we have earned the trust of brokers, borrowers and investors. When we make a deal, the other party knows that we will deliver what we promised." BY SAMANTHA GALE