Forum

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 15 Jan 2014, 11:37 AM Agree 0
One broker believes the banks are intentionally pulling the wool over customers’ eyes and is calling for a specific client signoff on collateral mortgages and not just at the time of signing.
  • Barbara Buote | 15 Jan 2014, 08:41 AM Agree 0
    A recent MacLean's magazine feature listed among other statistics, the largest lobby groups in Canada. #1 was the Canadian Banker's Association. That should tell us all alot about who is going to continue winning strategically in the world of finance. Will our call for "mortgage specialists" in our banks to be regulated or require accreditation ever happen? Don't count on it.

    Further discouraging is the flagrant disregard for Bill B20 that doesn't seem to apply to (or rather some institutions simply ignore) the big banks. While all of our monoline lenders are being audited to death who is watching over the biggest offenders - the banks?

    This is not heresay on my part as you have no idea how many times what I tell clients are the rules that apply in their case (i.e. qualifying at the posted 5 year rate for a variable) is totally
    disregarded by their bank and like majic, they are approved when clearly they didn't qualify.

    I seriously doubt in my time (30 years in this business as a banker and broker) that anything will change in this battle. My empathy is with all of those borrowers out there that are hoodwinked, either intentionally or not, by the implications of collateral mortgages, penalty calculations, etc.

    However, I am proud that as brokers, we have the opportunity to provide truth and guideance to our clients.
  • Barbara Buote | 15 Jan 2014, 08:42 AM Agree 0
    A recent MacLean's magazine feature listed among other statistics, the largest lobby groups in Canada. #1 was the Canadian Banker's Association. That should tell us all alot about who is going to continue winning strategically in the world of finance. Will our call for "mortgage specialists" in our banks to be regulated or require accreditation ever happen? Don't count on it.

    Further discouraging is the flagrant disregard for Bill B20 that doesn't seem to apply to (or rather some institutions simply ignore) the big banks. While all of our monoline lenders are being audited to death who is watching over the biggest offenders - the banks?

    This is not heresay on my part as you have no idea how many times what I tell clients are the rules that apply in their case (i.e. qualifying at the posted 5 year rate for a variable) is totally
    disregarded by their bank and like majic, they are approved when clearly they didn't qualify.

    I seriously doubt in my time (30 years in this business as a banker and broker) that anything will change in this battle. My empathy is with all of those borrowers out there that are hoodwinked, either intentionally or not, by the implications of collateral mortgages, penalty calculations, etc.

    However, I am proud that as brokers, we have the opportunity to provide truth and guideance to our clients.
  • Blair Anderson | 15 Jan 2014, 09:38 AM Agree 0
    This is a good idea, and leading the charge for more disclosure reflects well on the broker channel. Once again as brokers, we lack a national voice, and the influence needed to expedite the process. But don't lose faith Barbara. Consumers today are much more savvy. I know a lot of time has passed, but eventually we will be rewarded for the good stewardship we provide, and the consumer advocates that we are.
  • cc | 15 Jan 2014, 09:49 AM Agree 0
    I totally agree with your concerns and that changes have to happen with regards to collateral mortgages.

    Your view with the banks trying to push brokers out of the market, this should be a real concern for all brokers like as you said the signs are there .
    Lets see one big bank closes a large broker lender and another big bank buys a broker lender and than pulls it from the broker market.???
    This should also be a huge concern for the consumer as well, as the rules tighten on mortgage lending clients will not have the option of shopping for rates as they will need to qualfiy under the new rules .
    Example Clients that originally qualified with a 40 & 35 year amortization ect.......
    What I see the banks offering at time of renewal in the future are posted rates as they know clients will not be able to qualify any where else.

    The banks want to control the discounting and by pushing out the competitor (Brokers) than they will accomplish this.

  • Krishna Gupta | 19 Jan 2014, 07:49 PM Agree 0
    I have been advised by the lawyer who has been instructed by the lender for second mortgage behind collateral mortgage that bank has informed the lender in writing that "No subsequent charge can be registered", means client not only can not transfer mortgage to a different lender, now Bank is stopping them to get equity out by way of second mortgage.
Post a reply