A dwindling number of lenders and the need for more competitive rates will emerge as the two greatest concerns for brokers, argue several mortgage professionals anticipating the results of the industry's most influential survey.
“A declining number of lenders is a major concern for many brokers right now,” said Max Cafissi, of Centum Home Quest Mortgage, in Alliston, Ont. “I know it’s my major concern.”
Cafissi thinks one solution is for brokers to go back to what they did best decades ago: "Concentrate on B borrowers.” Other brokers responding to the 2012 CMP Lenders on Brokers survey, now underway, are likely to voice the same concerns, he wagers. (see CMP Brokers on Lenders survey)
Still, brokers won't know the definitive results of that survey, which lenders increasingly rely on to shape products and fine tune their broker services, until October.
For now, hundreds of mortgage professionals are busy filling adding their own thoughts by filling out the brief questionnaire. It's seen as a group effort to influence their lending partners at a crucial time in the industry's development,
Still, Cafissi is already convinced of what the result will show.
“It’s getting harder to offer clients ideal products because A lenders are dwindling and bank road reps are buying down rates,” he said.
Another broker agrees with Cafissi on the issue of vanishing lenders and argues it will also figure prominently on the annual survey.
“The channel is losing lenders," Keith Leighton of Ideal Mortgage in Halifax, Nova Scotia told MortgageBrokerNews.ca. "Look at the trend lately, FirstLine was wound down by CIBC and now ING’s Canadian operation may be offered up for sale.”
Another hot topic that will likely bubble up from the survey is the need for lower mortgage rates, said Leighton.
“We used to have the advantage of lower rates against the banks," he said. "Now banks are dropping down their rates to 2.99 per cent and 2.94 per cent."
Like many filling the survey, he thinks it's key that lenders step up to the plate.
The breif survey is seen as a way of conveying that request.
What do you think will be the top two broker concerns to come out of this year’s Brokers on Lenders survey?
Tell us. Better yet click here to add your voice to CMP Brokers on Lenders survey