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Mortgage Broker News | 22 Sep 2009, 12:00 AM Agree 0
Broker status and incentive programs are becoming increasingly common among mortgage lenders - but what does it mean for brokers? Erin Letson explores what lenders are trying to achieve, why efficiency matters and how to become a status broker
  • Scott | 01 Oct 2009, 02:41 AM Agree 0
    Brokers are stupid if they think these incentive programs are good in the long run. I am in one with a large lender. The last three deals were declined and it took up to three days on one for them to decide no. The only reason brokers go for this is the extra BBPS. By the way all three of those deals were immediately approved and CMHC insured through another lender. We are going to end up as bank employees without any benefits if we are not careful. Big banks buy up the lenders that made mortgage brokering unique and profitable. Ist line owned by CIBC, Mcap by BMO and so on.They used to kick butt on the big boys and brokers were heros with client. Now they say give us X amount of deals or your cutoff. After one gets rid of you where else do you go? Remember in the not to distant future you'll need volume for any of them to pick you up and you will have to sing their song. What makes brokers worth the money is having a number of options for their clients, beware of the $ carrot on the stick. Brokers will one day be eliminated by the big banks. They'll keep who they like and the rest will wonder how it happened!
  • MTGunderwriter | 03 Oct 2009, 02:43 AM Agree 0
    I worked as an underwriter, and for me an incentive program is no more than a nice trick of smoke and mirrors... instead of being paid full commission up front you will only get half or whatever ratio and the rest once you have submitted enough deals... this looks good in the begining but tell yourself the lenders are making a profit off of the brokers that will not fuffill their submission quota witch can be hard for new brokers to do! I beleive in an open an honest relationship with brokers that way they know what to expect of us and will respect us more in the long run + full commission up front after closing no fake waiting period. Don't lie to yourself and think that everything is not calculated... if you don't beleive me look at the before and after...
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