Introduction
In one of the most wide-ranging and insightful episodes of the Behind the Lender series, hosts Dean Lawton, Deryk Williamson, and Jason Marshall sit down with Rachelle Gregory, SVP of Originations at MERIX Financial. What starts as a look behind the curtain at one of Canada's most respected broker-channel lenders quickly evolves into something far richer — a masterclass on long-term business planning, the trailer fee model, alternative lending, and a genuinely compelling conversation about DISC communication styles and how they shape every relationship in your business.
Rachelle isn't just an executive at MERIX — she was the company's third employee when it launched in 2005, and she's lived every chapter of its growth. Her perspective is both uniquely informed and refreshingly candid.
The MERIX Origin Story: Built by Brokers, for Brokers
MERIX Financial launched in 2005 — and Rachelle was there from day one, literally waiting beside a fax machine for the first job letter to arrive. But the company wasn't built on gut instinct alone. Before writing a single mortgage, the founding team went directly to brokers and asked two simple questions: What drives you to send business to a lender? And: What ticks you off?
The answer to that second question shaped everything. Brokers were frustrated by the same recurring problem: they'd send a client to a lender, and five years later, that lender would tell the client not to talk to their broker anymore. MERIX decided to solve that problem from the very beginning.
"We said, okay, well, wait a second — that's a problem we can solve." — Rachelle Gregory
By building what Rachelle calls a "triangle relationship" — keeping the broker included in every stage of the mortgage lifecycle — MERIX differentiated itself immediately. By their second year in business, they had broken into the top 10 lenders by market share. The growth continued, and in 2021, MERIX was acquired by MCAP, one of Canada's largest mortgage financing companies.
The MCAP Acquisition: Bigger Backing, Same Voice
When MCAP acquired MERIX in 2021, there was a natural question: would MERIX simply be absorbed and lose what made it special? Rachelle addressed that head-on. Rather than folding MERIX into the MCAP identity, leadership made a deliberate decision: keep the voice, keep the brand, and keep being different.
"If we were going to do that, we would have just folded. We would have gotten rid of the brand. Be different." — MCAP leadership, as recalled by Rachelle Gregory
The acquisition brought significant advantages — unified policy, greater capital, stronger technology infrastructure, and the ability for underwriters to make more exceptions with more flexibility. One of the most meaningful changes for brokers: MERIX now underwrites to a single policy, removing the inconsistency that could previously occur when a deal shifted between investor pools mid-process.
And the collaboration within the MCAP family? Rachelle says it's been genuinely surprising. She speaks with RMG's leadership almost daily — sharing ideas, shooting off thoughts, and leveraging the fact that different perspectives lead to better outcomes.
"Just like brokers, there's enough business out there for everybody." — Rachelle Gregory
The Trailer Fee Model: A Long-Term Business Strategy, Not Just a Comp Choice
The trailer fee model has been part of MERIX's DNA since the beginning — and Rachelle makes a compelling case that more brokers are waking up to what it actually means for their business.
Here's how it works: brokers receive an upfront commission when the deal funds, and then a trailing fee every year the mortgage remains with MERIX. But the financial benefit is only part of the story. The model is built around a commitment that when a client calls MERIX at renewal, the call centre is required to refer that client back to their broker.
This is the triangle relationship in action: broker, lender, and client — always in communication, always aligned.
Who Should Be Using the Trailer Model?
Rachelle advocates for a segmented approach. Not every deal should go into a trailer — but some clients are perfectly suited for it:
- Families with young kids in detached homes — likely to stay put for years, making trailers an obvious fit
- Self-employed clients — often in their "forever home" situation, especially on the alternative side
- Brokers planning for life events — one broker literally family-planned around trailer income to cover maternity leave
- Brokers approaching retirement — building a tangible, recurring revenue stream that adds enterprise value to their book
Many brokers who funded significant volume in 2021 shifted to the upfront model when business was abundant. Now, in a renewal cycle where switching deals is much harder, the value of the trailer model is coming into sharp focus.
"In 5 years, I don't want to work this hard. How do I make sure in 5 years I don't have to work this hard?" — A sentiment Rachelle hears from brokers regularly
The Renewal Reality Check: Why Transfers Aren't Working
The team had a frank conversation about the current renewal environment. Many brokers entered the 2024–2025 renewal cycle expecting to transfer 75% of their maturing clients to new lenders. The reality? Closer to 15%.
The problem is structural: straight renewal switches are nearly impossible to win on rate alone, and many clients are equity-constrained, unable to refinance and move. The broker who fights tooth and nail for five basis points on a switch is burning energy that could go toward new originations — or toward building a sustainable, loyal book.
For brokers in the trailer model, this isn't a crisis. It's confirmation that the model works exactly as designed.
NPX: MERIX's Alternative Lending Brand
MERIX's alternative lending brand, NPX, celebrated its 10th anniversary in 2024. Rachelle — who took over running the alternative side four years ago after spending her career on the A side — offered a nuanced look at who actually uses alternative lending today.
The picture has changed dramatically:
- The average beacon score on NPX files is over 700
- The vast majority of clients are self-employed (BFS), not bruised credit
- Many clients turn to NPX not because of credit challenges, but because they need more equity out — and NPX qualifies at the contract rate with a 40-year amortization
Rachelle was candid about the myth that every alternative client has a clear path to the A side: in practice, many of these clients are on the alternative side permanently, and that's fine. The opportunity for brokers is to stay engaged, coach clients where appropriate, and build loyalty with a demographic that — as Dean noted — tends to refer heavily because they truly understand the value of what a broker does.
NPX recently expanded from its Ontario base into Alberta, BC, Manitoba, and Saskatchewan, growing methodically with a select group of brokers — including ABW — to protect the quality of the experience.
Building Better Relationships: The Underwriter Is Your Ally
One of the most practical segments of the episode focused on how brokers should handle deals that don't fit — and how to work with underwriters effectively.
Rachelle's advice is clear: don't assume a condition in the commitment is the end of the conversation. Call the underwriter. Offer a new angle. Ask if they've considered the file from a different perspective. You'd be surprised how often a collaborative conversation changes the outcome.
And if escalation is needed? Ask the underwriter's permission first. Going above someone's head without warning is a relationship-killer — even if you do it politely. That relationship is going to matter on the next deal, and the one after that.
"Happy underwriter, happy broker." — Rachelle Gregory
The team also reinforced the value of limiting the number of lenders you work with — not to put all your eggs in one basket, but to invest in knowing your underwriters and building real relationships with them.
Flipping the Script: DISC Communication Styles
The episode took a fascinating turn when Rachelle — now an accredited DISC educator — was invited to flip the script and ask the hosts questions designed to reveal their communication styles.
What Is the DISC Assessment?
DISC is a behavioural assessment framework that identifies four primary communication and personality styles:
- D (Dominant) — Direct, results-oriented, focused on the end goal. Wants to know: what's the outcome, and how fast can we get there?
- I (Influencer) — Energetic, relationship-focused, loves meeting people and hearing stories. Motivated by connection and enthusiasm.
- S (Supportive) — Harmony-driven, team-oriented, attentive to others. Needs stability and dislikes being rushed.
- C (Conscientious) — Process-driven, accuracy-focused, protective of their work. Wants the details before committing to a decision.
Rachelle is an I. Dean emerged as a strong D. Jason identified as a CD. Deryk sits in the middle, blending analytical and decisive tendencies depending on the situation.
Why It Matters for Brokers
Rachelle shared a story that stopped the room: a broker switched her client's lender three weeks before closing to capture a 20-basis-point rate improvement. The broker thought she was being a hero. The client — an S who had been carefully guided through the entire process — was so destabilized by the sudden change that she walked away and went back to her bank.
"Price is so much more important, but it's not always the most important thing." — Rachelle Gregory
The DISC framework would have told that broker exactly what her client needed: stability, predictability, and clear communication — not a last-minute pivot, however financially logical.
Practical Applications
- Use DISC to prepare for broker or client meetings before you walk in the door
- Train your team to document client communication styles so every touchpoint is appropriately tailored
- Use it to understand how your partners — whether underwriters, BDMs, or co-founders — receive information, so you can lead better and disagree more productively
- MERIX has built DISC into their internal vocabulary — BDMs now prep for broker meetings by thinking through how that broker wants to be communicated with
Key Takeaways
- The trailer model is a life-planning tool, not just a comp choice. Think about where you want to be in 5 years and build your book accordingly.
- Renewal transfers are harder than ever. The brokers who built trailer books are insulated. Those who didn't are working twice as hard for a fraction of the result.
- Alternative lending has evolved. Today's NPX client is more likely to be a high-earning self-employed professional than a bruised credit borrower. If you're not in this space, you're leaving deals on the table.
- Your underwriter relationship is a competitive advantage. Build it carefully, communicate respectfully, and don't go above their head without asking first.
- DISC is not a box — it's a lens. Use it to understand how you communicate, how others perceive you, and how to adapt to get better outcomes in every relationship.
- AI won't build loyalty, but people who truly listen will. In an increasingly automated world, the broker who understands their client's communication style will win.
Why You Should Listen to This Episode
This episode delivers on multiple levels. For brokers evaluating their lender relationships, it's an honest, detailed look at what makes MERIX tick — from its founding principles to its MCAP-backed present. For brokers thinking about their long-term business model, the trailer fee conversation is essential listening. And for anyone who leads a team, manages client relationships, or simply wants to communicate better, the DISC segment is one of the most practical and immediately applicable discussions this podcast has produced.
Rachelle Gregory is a rare combination: a lender executive with 21 years of institutional knowledge, a trained communication educator, and someone who genuinely cares about the long-term success of the brokers she works with. This one is worth a full listen — and probably a second.
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