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Mortgage Broker News | 14 Sep 2016, 08:15 AM Agree 0
Competition may be ramping between brokers and lenders for client business at renewal time. We spoke with two brokers and a lender to get a sense of how that delicate process is navigated
  • David Larock | 14 Sep 2016, 10:53 AM Agree 0
    “Don't wish it was easier, wish you were better. Don't wish for less problems, wish for more skills. Don't wish for less challenge, wish for more wisdom” - Jim Rohn
  • John Sayer | 14 Sep 2016, 10:58 AM Agree 0
    Eliminating competition is Anti Trust.

    A major reason most banks do not deal in the broker channel, they do not care to compete fairly with all parties.

    ANY lender choosing to favour a client at the expense of an engaged broker as well as the original broker are at risk.

    Anti Trust protects fairness, lenders big and small must abide.
  • Len Lane | 14 Sep 2016, 11:21 AM Agree 0
    Sad part is for the broker is that most of them do not have a crm program and so have no idea when things are up for renewal. Personally we start at 6 month ourselves to make the client aware that they should talk to us before auto signing the renewal. We have a very high success rate in converting clients if its in their best interest.
  • John Van Driel | 14 Sep 2016, 11:23 AM Agree 0
    Aggressive retention has been a fact of life for some time now. The issue that grinds my teeth is lenders who will scoop our referral sources (realtors especially) by offering them the same referral fee as they give us.

    Unethical, yes, but illegal??
  • Michael Yasny | 14 Sep 2016, 11:45 AM Agree 0
    If brokers were more than just a mortgage broker they would have a relationship with the client were the client would always seek the advice of the broker when it comes to MONEY not just mortgages. If this relationship is in place, it will not matter if the bank has offered the client a renewal that they think is fair. The client will still call the broker for their opinion and at that time the broker can review the offer and either agree it is a good offer or suggest that they could find a better one. Even if the broker agrees the offer is a good one, the broker could ask the client to allow the broker to bring the deal to the bank on their behalf and then earn a commission. If the bank does not wish to pay the commission to the broker it would be a pretty good bet that the client will allow the broker to take their mortgage to another bank. We all know the new bank will match the previous banks offer and now the broker makes a commission.
  • Paul Hudson | 14 Sep 2016, 12:04 PM Agree 0
    I agree with Dustin & Len. 6 months before renewal is when all brokers should contact their renewing clients (as well as once a year on the anniversary date, to see how all is going). It's a good opportunity to review whether the current mortgage features still fit the client's needs, whether they are still happy with the FI we set them up with, whether they plan to buy something new...the list goes on. Sometimes I recommended my clients stay with their current FI at renewal if it makes sense, knowing my good advise is appreciated and will likely lead to future business (referrals or otherwise). Staying in touch with clients regularly is one of the easiest ways to stay top of mind and retain future business.
  • harold tagg | 14 Sep 2016, 12:48 PM Agree 0
    I love when a client calls me about their renewal and then I find out that I placed them with Merix. I just help them get the best rate, stay with Merix, and I get paid every year after the renewal.
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