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Mortgage Broker News | 24 Jun 2015, 08:53 AM Agree 0
One broker lays out how a fee-based model might look like for the mortgage brokers, but is it a shift the industry should consider?
  • Jake Abramowicz | 25 Jun 2015, 08:08 AM Agree 0
    Wow. I'm surprised no one has commented on this as of yet. A model like this would only further cheapen the industry. No, I don't believe that we are entitled to our commissions but IF every single applicant I had was a one-size-fits-all model-citizen-borrower-800-credit-no-debt-management-level-employee-20%-down then I can see how this model makes sense. Once you peel the onion back you always get some tears. It happens time and time again "Oh yeah, I was married". "What bankruptcy? I thought things disappear after 7 years". etc. Therefore with lending (and investing) being rather unique, I don't see this kind of model working. Further, fee-based planners on average charge 1% of the portfolio PER YEAR. We "charge" 1% per transaction. I don't find that a fair comparison IMO (not to mention the MERs that bad investment advisors load you into).
  • Ron Butler | 25 Jun 2015, 12:10 PM Agree 0
    I think the last paragraph of James's comments sum it up perfectly. From a 38,000 foot view: very interesting concept. From a practical, street level view: dead as a doornail, non-starter.
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