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Mortgage Broker News | 06 Aug 2015, 09:00 AM Agree 0
Brokers hope the recent suspension of numerous brokers by one lender for allegedly falsifying documents won’t encourage regulators to hand out more stringent guidelines
  • Mike | 06 Aug 2015, 01:48 PM Agree 0
    Perhaps it is supervision at the brokerages that create this problem. How does a principal broker control and monitor 30 or 40 brokers not to mention the 100's at the super brokers. Maybe requiring a every form to have one broker for every ten agents and a broker at every location that is responsible for compliance would protect from fraud. Mortgage brokerages need to take the lead, not wait for OFSI.
  • Arthur | 06 Aug 2015, 01:52 PM Agree 0
    Let's be real - it's been happening, is happening and will be happening with many more lenders other than and including HT.

    There is always some greedy enough and ready to do whatever it takes to get the deal done. No need to make this the hottest mortgage news headline that has ever been published. For anyone in the industry - it's not news at all.
  • Blair Anderson | 06 Aug 2015, 02:24 PM Agree 0
    With all due respect Arthur, you sound a bit too dismissive and complacent, almost accepting of the status quo. That will not help the fight against mortgage fraud. I for one am grateful this industry finally has a public forum to discuss issues that matter. Yes, mortgage fraud matters!
  • Dave | 06 Aug 2015, 02:25 PM Agree 0
    How about the underwriters getting paid off by brokers at certain monoline lenders? This has been going on for years. It's a hot market for years and people can't qualify for mortgages , so brokers start making offers to underwriters and admin staff to close their eyes on particular income docs. Then meet at Timmys with lots of cash in an envelope. This is the reality of the business, greed will show up when the money is good, ethics out the door.
  • Geoff Lander | 06 Aug 2015, 03:23 PM Agree 0
    Perhaps it's happening everywhere as it always has been or not. I can't speak to that-I don't do it nor do I want to go through the bother. On top of that I hear the whispers around but have no first hand knowledge of it happening. However all industries have these sort of back alley secret agreements so brokering is not unique in its plight. Should it be cleaner? Yes. Is it going to be? Doubt it. It doesn't mean we shouldn't try.

    Interestingly the next headline from MBN is about mortgage fraud decreasing.
  • George | 06 Aug 2015, 05:01 PM Agree 0
    Dave, where's your head? You make it sound like all mono line underwriters are on the take. I doubt that even 1 in 1,000 are. Now a bank branch manager or loan manager, maybe!
  • Ron Butler | 06 Aug 2015, 05:29 PM Agree 0
    Dave's suggestion that underwriters are being paid cash by mortgage brokers at a Timmys in the middle of the night is simply ridiculous. Just nuts. All lenders have an internal audit systems that would catch such activities.
  • Ross Taylor | 07 Aug 2015, 03:10 AM Agree 0
    So if the accused brokers have their ties with Home Capital severed, is there anything stopping them from camping out at another lender's door and resuming their wicked ways.
  • Gord | 07 Aug 2015, 06:47 PM Agree 0
    There is fraud in our industry and it will unfortunately continue. There is fraud in every industry. Fraud costs money. The cost is passed on to the consumer so it is in everyone's best interest to reduce it. But we need to maintain some balance. Fraud costs money, so does compliance and that cost is also passed on to consumers.

    During the credit crisis no major institutions failed, mortgage losses were minuscule. It did appear Canadian lenders might actually know how to measure and control risk. Why did the government decide to do this? Possibly because fixing something which wasn't broken was easier than fixing something which was-the Senate springs to mind.

    Have we reached the point where the costs to the consumer of unnecessary compliance and questionable rules being set by OSFI and the various securities commissions exceed the costs of activities they were meant to stop? How many clients actually read a multi-page disclosure? Not many in my experience.

    Maybe we should take a step back to letting the industry looking after itself. Very few statements have caused more trouble or cost more money than "We are from the government and we are going
    to help."
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