A tale of two brokering philosophies

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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 of Verico 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.”
  • Angela Wong-Liao - Invis on 2014-10-29 3:01:14 PM

    After 13 years in the mortgage brokerage business, I learned that we have to give choices to our clients, banks, non-bank lenders, trust companies, credit unions & private lenders. Each clients have their unique needs and we have to provide them with choices and information, so that our clients can make an inform decision.

  • Omer Quenneville on 2014-10-29 10:13:45 PM

    I tell all my clients that banks are not your friend and some, particularly those that dealt with TD bank agree whole heartedly. Any good deal at a bank can be beat.

  • Gord B on 2014-10-30 7:51:00 AM

    I agree with Angela. We need to think of our clients first and deliver them the best product. We sometimes have clients with unusual income issues, need of ETO's over $200k etc which the monolines cannot deliver right now. Our job is to find the best answer for the client, not what is best for ourselves. Have to agree with Omer on TD though. Shockingly bad service throughout the organization. Don't know how they let it get so bad.

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