Conversation on MortgageBrokerNews.ca evolved from a discussion about underwriting exceptions to one about monolines vs. big banks and two brokers discussed their individual reasoning for supporting one or the other.
“We deal with banks for product -- rentals at competitive rates, clients who insist on SLOCs, ratios exceptions… mortgages over a million -- we simply cannot get from monolines,” Ron Butler
Butler Mortgage wrote on MortgageBrokerNews.ca. “We need the banks to supply what the monolines cannot, l send plain vanilla to monolines and lots of it.”
Butler’s message was in response to one anonymous broker questioning readers why – if there is perceived double standard between bank underwriting and monoline underwriting – industry players are still content to send deals to, what many brokers believe to be, the competition.
“This is not a criticism of anyone in particular, but if the banks are as seemingly as difficult to deal with because the branches continue to compete (unfairly according to some) as so many brokers continue to lament on this forum, why do you insist on sending them business?” the broker wrote.
He then put forth a call for brokers to follow his lead.
“I haven't used (the banks) for over five years, and it has not hurt my business at all; I have never run into a customer that has told me ‘I must deal with X Bank,’” the broker wrote on MortgageBrokerNews.ca. “Before anyone pops up with a ‘you probably don't do much volume:’ When I started in this industry in 2006 I, like most people, did about 5 million in volume. I now do 10 times that, still without sending business to the banks.”