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Mortgage Broker News | 29 May 2014, 09:28 AM Agree 0
It’s RBC’s points program – and not the recently announced $1,000 cash incentive for realtors who refer clients for a mortgage – that one broker has an issue with.
  • John | 29 May 2014, 11:44 AM Agree 0
    Just because a client signs a disclosure, does not mean the client is aware of the disclosure. It is too easy to hide something like that. It is still a conflict of interest whether you sign a disclosure or not. Signing a disclosure does not legitimize the conflict of interest.
    You would be naive to think that referral fees or points does not influence some Realtor's on who they referral there clients to.
    RBC program is just a tip of the iceberg. TD has a well established program for Realtor's and new home sales agents. I approach a new home builder sales rep and he told me TD offers him $500. The fact that he mentioned it,it is obviously important to him
  • interested consumer | 29 May 2014, 12:26 PM Agree 0
    Do mortgage brokers fully disclose to their clients the value of bonuses, trips, points and other incentives that a lender gives to try to get the business?
  • Sean Binkley | 29 May 2014, 12:57 PM Agree 0
    @interestedconsumer is right, we as brokers have as much responsibility to explain points programs, incentive trips to clients as the realtor needs to disclose points programs and referral fees. Now, the idea of paying for referrals is certainly one that I make clear to my clients that we don't and won't do. Let's face it, there's lots of Mortgage Broker's that buy down a rate to "help sell the deal" to a client, isn't this the same thing as paying for a referral? If a realtor get's excited over $1,000, then all you need to do is offer them $1,001. The reality is that good realtors will not be swayed by referral fees like RBC, TD, and National Bank pay them. Just like a good mortgage broker won't be swayed by points or incentive trips.
  • John | 29 May 2014, 01:41 PM Agree 0
    In an ideal world Brokers would would be paid the same commission from every lender and receive no volume bonuses or points. But we do not live in a ideal world. My choice of lender is about product and interest rates. I have never choice a lender based on Bonus or points. I can not speak for other brokers.Buying down the rate is not a conflict of interest. Some lenders giving better rates to brokers that sell high volumes. That is a win win situation for lender and client. But all this does not change the fact that referral fees from banks and brokers is a blatant conflict of interest. Signing a disclosure does not remove the conflict of interest.
  • Patrick | 29 May 2014, 06:23 PM Agree 0
    If the real estate market was slow and crappy, I am certain all Realtor would be flocking to RBC to help get that extra $200 in their pockets. Markets are hot & overheated now, hence $200 makes no difference to them but wait.
  • Leo Bradshaw | 29 May 2014, 07:48 PM Agree 0
    As a Real Estate Agent I want what's best for my clients. The referral is interesting as a tool to get us to get our clients to go to them but I always send them to a mortgage broker who will shop around for the best deal. They are the pros as are we and we need to work together for the good of the consumer. If the Royal Bank has the best deal I'm sure they will attract the Brokers.
  • disclose | 30 May 2014, 01:58 PM Agree 0
    Thought that any referral fees had to be disclosed. Secondly they say you must have 5 deals to get the $1,000. Thirdly, 27 years and never gotten a referral fee. Give three or more mortgage brokers names, usually they have their own bank and the client finds out who had the best deal for them.
  • John - Broker | 31 May 2014, 03:59 PM Agree 0
    The $200 is laughable. If this sways a Realtor, you have to wonder how good that Realtor is. As for incentives and finder's fee's etc for brokers, I will always do the best for the client. When I first started, and I was struggling to make ends meet, I focused on the amount of pay I was getting on a deal. I quickly realized that I was actually setting myself up for failure by doing so.

    Once I realized this I started doing better business by getting the clients the best deal possible, and with that better business my referrals from clients went up and my income took off.

    Simply I stopped worrying about it and got the best deal for the client, which made everyone happier.
  • John - Broker | 31 May 2014, 04:00 PM Agree 0
    I should also mention I always fully disclose any incentives etc to my clients. I also take my time through the disclosure so that nothing is missed. I don't rush a client through and I am open to any questions they may have.
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