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Mortgage Broker News | 03 Oct 2011, 09:00 AM Agree 0
Mortgage professionals say they’ve had enough of clients going to the bank, with broker commitment letters in hand. As Vernon Clement Jones finds out, a growing number are thinking exclusivity agreements will stop them in their tracks
  • Kevin J. Power, President Power Mortgages Inc. | 04 Oct 2011, 03:40 AM Agree 0
    Exclusivity agreements are one thing, enforcing them is another. The problems that can be generated as a result of trying to enforce the contract is an issue within itself. While, legally enforceable, it will result in appearances at Small Claims Court and the head aches associated with convincing a judge that someone actually knew what they were signing. Real Estate agents have had these agreements for years and many have found that enforcing them is a different story. The potential damage to referral relationships is tantamount to consider signing and enforcing an agreement. Some clients are flaky by nature and bankers from bank branches and head office have never been our friends. In far too many instances clients walk because agents have not asked them for their commitment before they do the work. There is an inherent tendency to not ask the tough question about what clients are looking for, a quote? or a mortgage? Look at the credit report and see who else has inquired, ask them about it. Taking this approach seems to separate a client from a shopper. Ask the question and know now and not after the work has been done.
  • Bill Nugent | 07 Oct 2011, 06:13 AM Agree 0
    Well said Kevin
  • Liz | 12 Oct 2011, 03:05 AM Agree 0
    I agree as well. The fact that bankers still ask the client to bring in an offer a Broker has obtained for them only for the bank to match is simply mind boggling to me. Why does the consumer still do this and why do we still deal with the big 5 who are guilty of this practice?
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