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Mortgage Broker News | 03 Jun 2009, 12:00 AM Agree 0
The Bank of Montreal is suing a top mortgage specialist, Josephine Tortora, who worked out of a Burnaby, B.C. branch, according to The Vancouver Province.
  • John B | 05 Jun 2009, 04:14 AM Agree 0
    Mortgage agents have been kicking back THOUSANDS per deal referred to Bill Collectors in 3rd party collection agencies for years.

    Now thats a conflict of interest!!! When is someone going to crack down on that?
  • John B | 05 Jun 2009, 04:14 AM Agree 0
    Mortgage agents have been kicking back THOUSANDS per deal referred to Bill Collectors in 3rd party collection agencies for years. Now thats a conflict of interest!!! When is someone going to crack down on that?
  • Dave | 05 Jun 2009, 07:53 AM Agree 0
    I am a mortgage broker who occassionally gets these deals from collection agencies. I give a 20% referral fee to the agency that gives me the deals. First off the collection agencies only get paid when they collect from the client and only get paid on the mortgage if it closes. Second these clients are not credit worthy enough to deal with a bank and generally do not know about mortgage brokers or even their options. We negotiate a better settlement for the client as we don't just settle with one collector but with all of them at the same time. There is value in it for the client.
    Third who is going to pay for my time and my expenses when I get a client a really good interest rate and they take my rate to their bank and get the bank to match it. They never would have gotten the great rate if a broker hadn't have gotten it for them. We can't collect an up front fee from the client so we are forced to find our business elsewhere. There are also mortgage brokers that pay refferal fees to Real estate agents however I'm not one because I believe the realtor makes enough on the deal.
    I feel that as long as I'm doing right by the client why shouldn't the person who refferred me the deal at least get something as they could have sent it anywhere.
  • tony | 05 Jun 2009, 10:57 AM Agree 0
    I would like to get the honest truth on how much mortgage broker make as commission?? I really what them to come out and speak the truth and tell everybody how it works with the banks and mortgage brokers.
  • tony | 05 Jun 2009, 10:57 AM Agree 0
    I would like to get the honest truth on how much mortgage broker make as commission?? I really what them to come out and speak the truth and tell everybody how it works with the banks and mortgage brokers.
  • Mortgage Broker Commission | 05 Jun 2009, 11:00 AM Agree 0
    I would like to get the honest truth on how much mortgage broker make as commission?? I really what them to come out and speak the truth and tell everybody how it works with the banks and mortgage brokers.
  • Paul | 06 Jun 2009, 12:45 AM Agree 0
    Here's a link that will provide your clients some insight into how the banks work and how to keep your client. Being as truthfull as possible upfront has helped me when the banks try to match rates with my clients.
  • BC | 06 Jun 2009, 01:59 AM Agree 0
    I have been in the mortgage industry for 16 years and I am against any one paying referral fees. It only serves to blur the line of integrity, objectivity and professionalism. If you are good at what you do, then paying for business should not be necessary. Further, the clients are never totally informed when their real estate agent receives a "secret commission" for referring a client to their mortgage broker. I have had to pay referral fess on occassion only to ensure I can keep a deal and be compensated for time invested. I am not happy about it.

    My question to the broker who pays 20% to the collection agency is are you disclosing the referral fee to client who you actually earn the money from? I know legally we don't have to (until this year in B.C.)
  • Tina | 04 Jul 2009, 11:41 AM Agree 0
    I am a mortgage agent my broker force me to do an investment as a second mortgage I gave him the bank draft and now after 7 months pass he never paid me any interest and is not willing to pay me back what should i do? can any one help please
  • Carol | 03 Feb 2010, 06:07 AM Agree 0
    Referral fees make the world go around, there is not a business around that is subject to customer referrals and whether you receive flowers, a dinner, a trip, or money it all comes down to the same thing.
  • Jeff | 06 May 2010, 04:08 AM Agree 0
    Mortgage brokers rarely do what is right for the client. They send deals to whomever pays the most commission. Also, think about it... Brokers can't get the best rates like they claim. Why on earth would a bank offer a better rate to a broker and on top of it pay them commission when they could give the same or better rate to someone just walking in the door. This is no secret but unfortunately people are too lazy and go with brokers so they don't ahve to do any homework or negotiating.
  • george | 06 May 2010, 04:24 AM Agree 0
    @jeff's comments/

    a bank is offering prime - 50 on a mortgage. what is wrong about your assumption is that a broker can get prime - 70, whereas the bottom bottom you'll get from the same bank is -50. why? it's because of the commission you indicate so rightly that we can go lower. (we=a broker)

    i used to agree that paying referral fees is bogus until i realized that like someone else said - it's what makes the world go around - why wouldn't a good r/e agent want to partner with a good m/broker? who cares from the clients end where the deal is placed as long as it's a good deal? as for your suggestion of peoople being lazy- doing the homework and negotiating is exactly what we do. furthermore, peope WORK and have busy lives and can't spend time to do their own homework, that's why we are here.

    lastly, brokers get paid 60-80 points or 0.6-0.8% on a typical mortgage in canada. agents get paid what, 2-3%?! you tell me who gets paid more and what's fair.

  • Jeff | 06 May 2010, 05:12 AM Agree 0
    A bank can give Prime - 0.7% or more. Think about it - you place 95% of your deals at banks. The bank can obviously give the client the same rate you give them through the bank. THIS IS COMMON SENSE. If they factor out brokers commission they can give MORE.
  • suggestion | 06 May 2010, 05:39 AM Agree 0
    yes referral fees makes the world go around, but is that the right thing to do?...No, b/c it also opens the door to corruption. Ideally referrals should be made based on performance and quality of service, not incentives. I have a problem with the fundamental issue that mtg specialists and brokers get incentives for providing service to their clients. They should be on fixed salary, and they can receive incentives as points instead of cash. Once certain point target is achieved, they can earn vacation packages or other kinds of non-cash incentives from their employers. This way there is minimal room for corruption and they will also be incentivized for their hard work!
  • Rose | 13 Jun 2010, 06:17 AM Agree 0
    Why is this new? This dates back to 2007 issue. Which from my understanding the BANK was found in correct, their accusations were unfounded, and not justified. They have since ammended their statement of claim. So if you are going to print news at least keep it current and correct! Why do you persists in publishing incorrect, and damaging information? Are you getting paid to publish old info, rather than the updated facts?
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