Bank benefits from monoline partnership

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TD was asked how it can offer 24 hour approvals and still properly scrutinize each deal during the approval process, and says the First National deal helps them to excel in both areas.

“What we've changed in the last little while is we entered into an outsourcing relationship with First National, and they have a very dedicated senior lending team,” Tim Hockey, group head of Canadian banking and wealth management at TD, said during the company’s quarterly conference call last week. “What we do is we've basically outsourced our adjudication and our funding of the mortgages. They are writing to our specifications.”

That answer was in response to a question about how the bank diligently assesses files while still offering 24 hour approval turnaround.

Many of the big banks were questioned about their credit verifications during quarterly calls last week, and they each defended their respective practices.

TD was also asked to explain how turnaround times aren’t being affected by strict underwriting.

“There is no auto-adjudication, which to your question, might, impact your turnaround times, but we've negotiated as part of our pricing the ability to actually get those approval rates back and quickly,” Hockey said. “And we've seen a substantial improvement in the turnaround times to the brokers, which is one of the reasons why we're up strongly in real estate secured lending.”

TD, of course, has partnered with First National on broker originated deals since the beginning of the year. That deal means First National provides underwriting and fulfilment processing to the big bank, and brokers note better service levels since that announcement.

“I have seen faster turnaround times from TD for sure; in the past their broker services didn’t offer a dedicated underwriter and approvals could take longer than 48 hours,” Edgar Rivera of MorCan Financial told “Now I’ve got a dedicated underwriter who gets back to me often within 24 hours.”
  • Angry Broker on 2015-09-04 9:57:42 AM

    Is this a paid advertisement by TD?

    I haven't met a single broker who is happy with the new set up TD has via First National. Effectively TD has became a monoline in terms of offerings on through the broker channel.

    The old TD IMAC was sure slow and sloppy but it was where we as brokers were able to take marginal files. TD was a true balance sheet lender that had a common sense underwriting philosophy.

    No more! Exceptions do not exist anymore, TD became tighter than a monoline.

    To add insult to injury, TD became a true B lender through their sales force and branch network. I had 3 files in the past month that were declined by TD's First National underwriting and yet somehow ended up funding with TD through a different origination channel. When this was brought up to my BDM (who by the way I love dearly) I was told "too bad so sad, sometimes it goes one way and sometimes it goes the other way".

    I did a little bit of digging around (meet and greets with TD road reps) and found out that even the guidelines between the mobile sales force and brokers are not the same anymore. When addressing this with my BDM (I have provided a full list of differences), I was told that "TD believes in equality between all three channels...blah blah blah". This is absolute BS and does not fit reality!!

    TD has become Canadiana with a new immigrant product in terms what they are willing to fund through the broker side. There is zero channel equality at this point in time.

    The honorable thing to do would be to address brokers and let us know that there is a shift in philosophy in TD. Tell us "we want triple A business from you, yet we will keep doing the marginal files through your competition" and we as brokers can decide how much we would or wouldn't support such operation. What TD does on the other hand is keep lying about "channel equality" and hoping that brokers do not notice. I guess whoever makes policy at TD is a chickenshit who is terrified of the consequences of giving us the straight goods.

  • John Van Driel on 2015-09-04 10:16:30 AM

    Call me dumb, but why would a mortgage broker send ANY business to TD, obviously one of our main competitors?

  • Ron Butler on 2015-09-04 2:56:26 PM

    Smart brokers us TD for the products and rates that give us an edge in the marketplace.

    I wish we would get off this obsession with "fairness" nothing in life or business is fair, nothing is perfect.

    TD now has an underwriting system that actually works and they have made their brand and products available to brokers. Use what they have or don't use it but please don't cry about it.

  • Angry Broker on 2015-09-04 5:51:42 PM

    The "heavy" online discounter is now talking about crying. Very rich.

    You gotta lighten up a little bit Ronny

  • Victor Simone on 2015-09-04 7:02:41 PM

    Angry broker has hit the main points, and this is the problem when a lender has 4 separate channels of distribution with different pricing and underwriting for each. The life industry underwrites a life case and prices it the same for all their channels. A bank that prices money and risk for a mortgage 4 different ways can't manage their own underwriting so they need to outsource it. Banks are turning into car dealerships and the next thing you know a bank is going to start offering employee pricing...oh wait.;-)

  • Walid Hammami on 2015-09-08 9:59:57 PM

    Bravo "Angry Broker" and "Victor Simone".

  • Angry Broker on 2015-09-06 2:07:41 PM

    Most of us brokers don't make a mockery out of our industry by doing deals for 25 bps or less, we value our work and for us deals are somewhat harder to come about then for someone who would buy them at all costs and competes solely on price rather than on quality of service.

    So please excuse us for caring when a bank doesn't play fair.

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