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Brokers prepared to lump it, not leave Scotia

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Mortgage Broker News | 18 Oct 2012, 10:00 AM Agree 0
Most brokers will opt to lump it rather than leave Scotia over its 5-basis point chop, argue some industry veterans, even as others call for a boycott.
  • gemma | 19 Oct 2012, 06:11 AM Agree 0
    If VB was paid only to individuals based on their own true volume(as it was initially intended), this cut would not be happening. Pooling is deteriorating the profit margins for lenders.
  • Cam "The Pessimist" | 19 Oct 2012, 06:13 AM Agree 0
    If we don't boycott this fast we brokers and agents will be victims to the domino effect.

    The Gov slaps on more regulations due to high debt loads, the banks decrease pay and our clients search hard to save $1k over their term on their interest rate, yet their real estate agent just raked in $30k when we make $3k on the closing of their home. Do you see something wrong here…..
    C.
  • Cory | 19 Oct 2012, 06:41 AM Agree 0
    VB and pooling may be part of the problem, but let's not lose sight of the fact that numerous brokers/associates are reducing commissions on every file they work on. This is not going unnoticed by the lender. It clearly shows the desire to work for less commission. VB and pooling is a lender issue and they are dealing with it in the short term by correcting commission levels based on what Brokers are telling them. It was predictable 3 years ago, it is predictable today and it is real. Stop giving away your commission to sell on rate and the issues lenders deal with internally would not be so easily fixed. 70 BP 5 year mortgages are just around the corner! It can also not be seen as coincidence that the lenders offering lower commission are also the ones that are already or are getting very aggressive and good at retention. They know that you will continue to send a mass of your volume to them, now at lower costs to them, and also know that they will retain "their" client at alarming renewal rates. Great (and easy) business decisions by these lenders.
  • John | 19 Oct 2012, 07:28 AM Agree 0
    I am high producing broker ($100 MM +) and been in the business for 10 years. The biggest problem with our industry is everything we do is based on Greed! Our basis point, our compensations, our super brokers commission structures, Signing bonuses,…… 99% of brokers move, hire, recruit and push their clients to different lenders based on the GREED and Money factor!

    That greed is also reflective on the business model of National Networks like Verico, Axiom, RMA,.. and other Volume Pooling models that exist in today's market place! Why Scotia or any lender should pay more to Broker "A" who is member of Verico and sends 1 deal per month VS. Broker "" who sends in 5 deals per month but is independent? Most of the industry’s lenders treat broker “A” different and better then broker “B”!

    The Term Volume Bonus was created to create a LOOP Hole, so brokers could screw their agents and Super Brokers could screw their brokers! Now that loop hole has come back to bite us in the Ass.

    Have only 1 simple payment called Finder’s fee. (No more Volume Bonus). Allow every broker to send you a deal but if their efficiency drops below 65% ATF (Application to Funding), cut them off! If a broker knowingly sent you a fraud file, call the Police, charge them and suspend them from CAAMP and other organizations! It’s about time for this industry to take accountability for its problems and issues!
  • ON Consumer | 27 Oct 2012, 06:49 AM Agree 0
    As long as you pay your CAAMP dues on time they are not concerned.
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