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Mortgage Broker News | 17 Dec 2012, 12:00 AM Agree 0
Here’s a pep talk for 2013 guaranteed to banish any broker’s self-doubts and market fears
  • Ron Price/DLC | 19 Dec 2012, 05:08 AM Agree 0
    Thanks Dustin, you are so right.
    While we are at it and looking forward to a new year, I would like to address what I view as perhaps the two most pressing and important issues our industry faces. Commitments with no teeth, and the banks' new Collateral Mortgage product.
    I contend that if our lender partners were to put a cancellation/penalty clause in the commitments for example $1,500 lender, $1,500 broker/agent fee that the scenarios you cited would become a rarity. I have asked the question many times, not to be satisfied. Yes the 48 hour cooling period is what it is, but why are our clients allowed to walk away from the commitments they signed, and worse, take our paper to the bank.
    No one can do this once they sign a cell phone contract and if they cancel, they are on the hook for the balance of monthly payments. Yet for a mortgage, which of course involves so much more work, counselling etc., they can walk away without any consequence. Anyone I have addressed this subject with the past few years, plays it down usually saying that it is not a big deal. Well I suspect that most of us now think it is. And why shouldn't it be, also when it adversely affects our Efficiency Ratios through no fault of our own and otherwise costs us dearly.
    I would love to see our mono line lenders step up to the plate by including such a clause. Let's face it without the monos, our market and our industry would be much much different, and not unlike that of Australia. The monos keep the banks competitive and so we should all support them as much as possible.
    I believe that the monos would improve their/our market share if they were to do this.
    In the same token, in supporting the monos, our clients avoid getting into a collateral mortgage which is clearly not in the consumers' best interests.
    I am very passionately against this 'sinister' new product, especially knowing that the customer in general has no idea about the negatives involved,let alone what they are signing.
    Herein lies a huge opportunity, if addressed properly, to effectively gain market share from the banks.
    2013 would be a banner year for our industy if both of these issues where effectively dealt with.
    I would certainly be interested hearing what fellow colleagues have to say.
    Happy New Year all.
  • MP | 19 Dec 2012, 06:15 AM Agree 0
    Good advice!
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