8 secrets road reps told MBN

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  • 5. Road reps are just as likely – perhaps more so – to defect to a competing bank team than to go to the broker channel. In fact, that movement is increasing, with a couple of banks upping the commission and other terms that they offer high-volume road reps willing to come over to their institutions.
  • 6. Many road reps want nothing to do with the branches. Although they will go to the branch to meet clients, they are not dependent on branch leads. Still, to the extent that they want those referrals from the branch, they will make a concerted effort to cross-sell clients on other bank offerings in order to stay in “good” with the branch.
  • 7. “Road reps are not threatened by mortgage brokers,” said the industry vet. “Often our clients would prefer to get their mortgages through us despite the low rates at the bank. But we are (uneasy) about rate site brokers and the rates that are being offered there.” While banks will continue to match rates offered by other big banks, they won’t follow an Industrial Alliance, for example.
  • 8. Road reps are under the same kind of pressure to buy down rates as mortgage brokers are, the source told MBN.

  • read more > 1 2

    • Ron Butler on 2015-03-30 11:43:16 AM

      This is mildly interesting but I don't think I would describe this information as a secret. Mobile bank reps are often knowledgeable about their products, skilled and hard working and there is very little question that they originate a big share of Canadian mortgages

    • mat on 2015-03-30 12:01:55 PM

      #3 is pretty funny.
      "make you feel a little dirty, the prestige isn't there".

    • Ron Butler on 2015-03-30 12:08:11 PM

      Yeah, I thought about the "little dirty" comment. Odd, but maybe it reflects going from triple A deals to B deals. Here's a fact: I have interviewed many mobile bank reps for our salaried mortgage agent jobs and they all do get a kick out portraying themselves as "bankers" and to be fair; the Canadian Banks spend a several hundred million a year promoting themselves to Canadians so the reps may as well trade on it.

    • Anthony Contento on 2015-03-30 12:21:14 PM

      I would agree with Ron. I disagree with the comment made regarding mortgage specialist going back to banks"because the deals that come to them as brokers aren’t generally of the quality that we see in the bank, and doing the broker deals can make you feel a little dirty." As in any business, how you care to do business is what you are going to attract. There are many Successful X bankers , who left the Big Banks and never looked back. You reep what you sow. Mortgage Brokers continue to be the hunters and gathers, and depend on their product knowledge, their ability to close a deal, and ensure their service is superior to others, so the can maintain a competitive advantage. Many of the larger banks have their branches refer to their Sales Force to help them with their #s , as well as provide the customer with the option of having someone mobile to visit them. CIBC, and RBC both assist their Specialist with deals, at a lower commission if it is branch referred. Industrial Alliance is not the only Lender offering lower rates. There are many more lenders who sell paper to the very same bank many Specialists work for. In the end, Service , rate, and product will determine where the customer lands. As for everything else, we are all on the same playing field. As a veteran of the Industry, I would question why the specialist(at cibc) cares to stay anonymous? Your comments are noted. As Ron stated, this info is not a secret. However, some comments are not factual either and open for debate.

    • John on 2015-03-30 1:35:56 PM

      #3 is one of those myths that brokers only deal with people who cannot get a mortgage at a bank. I have as many 'A' clients as I do 'B' clients.

    • OkanaganBroker on 2015-03-30 1:50:13 PM

      Hmmm.... I would feel a little "dirty" by not being able to provide my clients with all the best mortgage choices and the very best rates...LOL

    • Lior Hershkovitz, Mortgage Edge on 2015-03-30 1:51:52 PM

      Not too many secrets there. To add to Anthony's point on IA, they do pay a lot while offering very low rates which is why many brokers send them business. For instance a month ago you could sell 2.69% 5-year mortgage with them paying 180 bps. Let's see the banks match that kind of commission for their road reps. That said there are plenty of other lenders who offer low rates on regular mortgages such as RMG and Merix without having to force the broker to buy down to peanuts.

      As for the "feeling dirty" part on non-conforming deals take it from someone who focuses on that segment: there is nothing dirty about being involved in specialized financing. It's a stigma that employees pick up working for a bank. At the end of the day the regulatory system in Canada is getting tighter. B20, B21, Basel III, restrictions on bulk insurance, all of those lessons from the credit crisis are making their way through the lending system. Many consumers who used to qualify with a bank a few years ago will not qualify today. This is not necessarily because of credit issues. It's the way the income is structured without having enough assets with the bank, non-conforming property, etc. The bottom line is alternative financing is on the rise because the banks are turning down more people.

    • race to the bottom on 2015-03-30 2:25:44 PM

      Interesting article, the broker channel has always been about rate, its the only card they can play. Excellent service is mandatory and expected by the customer so selling service or even strategy really doesn't cut it. Those that played in the middle for the last decade are being wiped out. Google or similar will soon be the broker which will take out the remainder of the channel which leaves the banks and road reps standing.

    • Mark Brennan on 2015-03-30 3:34:55 PM

      #3 could also be the Bank declines for little other reason than it doesn't fit in their guidelines. Nothing dirty about it, maybe just requires a bit more effort and dig in until the best solution for the client is found

    • Paul D on 2015-03-30 9:02:06 PM

      I run a private lending company that deals only through Brokers. Brokers are not dirty, but they definitely are not afraid to get down and dirty. No cookie cutter deals in my business. Brokers who structure private deals roll up their sleeves everyday to find workable financing solutions for their clients. This is the kind of partnership I value. Walking a Prime 'clean' deal into the Royal Bank is no major feat; try to find a bridge for a client that needs an environmental clean-up, in Consumer Proposal and has a Collateral Mortgage...

    • Jeff G on 2015-03-31 10:21:42 AM

      I've had a client come to me that got declined by one of the big 5's mobile mortgage specialist and got them approved with the very same bank. Only thing I can assume is that the specialist didn't know their product line well enough to offer it to them. As for reps leaving the bank for the broker channel and going back to the bank, there is only one reason why you would ever do that. You couldn't cut it on your own.

    • Jim Thornton on 2015-03-31 12:27:31 PM

      I have a couple of thoughts on this... First, with regards to brokers being "a little dirty". That's just absurd! Why would being a broker mean that you are being dirty. The majority of my business is clean, bankable, business. They just prefer to work with someone that has the expertise to recommend more than one lender to them. Then, there are the clients that fall outside of the bankable-box because maybe they own 4 rental properties and the bank will only allow you to have 3. How does doing that deal make you "a little dirty"? Then, you have the clients that can't get regular mortgages because of bankruptcies, self employment or a whole host of other reasons. Helping these clients out... How does that make you dirty?

      There are people everywhere, in the bank channel and in the broker channel that don't have solid ethics. They are not exclusive to either channel, but saying that being a broker makes you feel "a little dirty" is like saying a bank rep doesn't care about their clients and can't offer service. Both are inaccurate exaggerations.

      Second, as far as the mobile specialist saying that reps don't go back because they couldn't cut it, I don't buy it. The fact of the matter is that if you feel that you have to do "dirty deals" to earn a decent living in this business as an agent/broker then I would question your ethics in the first place. Anyone with a solid moral compass, with a desire to take care of their clients and a willingness to work hard can make it as an independent broker/agent.

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