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Mortgage Broker News | 28 Jun 2011, 10:00 AM Agree 0
Good news, brokers: You remain a primary referral partner for real estate agents even as the number of home sales slows across key Canadian markets. Bad news, brokers: More and more, the banks are determined to change that.
  • Mike | 29 Jun 2011, 02:21 AM Agree 0
    Is it not a CREA rule that if a Realtor benefits from the referral they must disclose that to the Purchaser? Would it not make sense then if a R.E. Brokerage actively solicited on behalf of a particular Bank that CREA would simply step in and ask to see all those "disclosures". Sorry I forgot, it's the Realtors that pay all those fees to CREA so why would they bite the hand that feeds them.
  • Mortgage Broker from the Province of Quebec | 29 Jun 2011, 02:48 AM Agree 0
    In the Prov. of Quebec, it has been already so long that all of the Banks pay .50% (of the mortgage amount) referal fee to Real Estate Agents for just handing out the name and telefone number of the client, that this became kind of standard practice amoung REA. Moreover I see a new generation of Mortgage Brokers that do not even see anything wrong with it and in addition, they even participate in that game of paying money to REA... Which I find sad... Therefore here 9 out of 10 deals go to the Bankers not Brokers... unless the last one are paying .50%...
  • Another Broker | 29 Jun 2011, 02:51 AM Agree 0
    Of course brokers are primary referral partners for real estate agents. If a realtor needs a doctored salary letter, NOA or bank statement the bank isn't going to provide them, the broker is. How many times have I sat down with an agent through the years and been asked to falsify information to make a deal work or been told that "this is how my other broker used to do it until they moved away". It's usually the big producers that ask for this I have found. The average realtor doesn't seem to have the same greed level and lack of ethics that the high producers do to make that extra deal and that extra buck. I think the best thing that could happen to us is what happened in the U.S. and take most of the realtors and mortgage agents out of the equation. This might clean up the business.
  • Crock Time | 29 Jun 2011, 04:47 PM Agree 0
    I guess you found the three realtors that are loyal to the brokers - I have been in the business a couplke of decades and agree more with Another Broker and MIke -- this article is a CROCK!!!
  • Karen Filice | 30 Jun 2011, 02:06 AM Agree 0
    As a Broker of Record governed by REBBA 2002 and a Mortgage Broker, I can tell you that realtors have to disclose when receiving a benefit. In our office, it is a simple "The Buyer and Seller acknowledge that Cirrius Realty Inc., Brokerage may receive a benefit .... This is included in any contract that our sales representatives do where financing is done by someone either paying a referral or benefit to our staff. You will find that any realtor receiving a benefit will include this type of clause in their contract.
  • Bev | 30 Jun 2011, 04:37 AM Agree 0
    Look, this is a relationship business...You have to know who you are working with..If you develop strong relationships with realtors where there is a mutual trust and respect there should never be a problem..The realtors I work with are more interested in making sure there clients are looked after than any of these other incentive programs..Mortgage brokers and realtors who are in this business for the "right" reasons will stand well and survive in this industry..In the end it is your reputation that is on the line..screw that up..you may as well close shop..
  • 22 year Real Estate Agent from BC | 30 Jun 2011, 05:30 AM Agree 0
    I agree with Bev. I need the continued business from repeat and referral customers and doing the "right thing" is top of mind. I try to put all of my Buyers intouch with a Broker rather than the bank - for MANY reasons, none of which have anything to do with doctoring documents, or falsifying information. Better rates, better service, better experience is what the Brokers bring. "Another Broker" and "Crock Time" are out to lunch.
  • Greg Williamson | 05 Jul 2011, 02:07 AM Agree 0
    Although in my experience I think Realtors may say "I prefer dealing with Mortgage Brokers", for me the question really is does the Realtor go out of their way to send business that is already pre-approved with a bank to their mortgage broker partner? In my experience this is simply not the case. My focus now is to take the leadership position in this relationship so I get to the client first and then charge the Realtor for the business, essentially flipping the tables on the way our relationship has been done. I love this new position. If brokers are willing they can check this out and more in my free video series at http://www.180DegreesAcademy.com
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