Banks are 'getting away with it,' says broker

Banks are 'getting away with it,' says broker

Banks are

 
Last year RBC and TD withdrew from the Ombudsman for Banking Services and Investments (OBSI) for banking complaints, choosing instead to hire and pay for a private for-profit supplier whose job is to rule on the merits of their customer complaints and claims for compensation. That supplier, ADRBO, was criticized by OBSI as only being directly accountable to the banks that hire and pay to rule on their market conduct. “If they do not sufficiently please their client – the banks – they can be fired,” said the OBSI in reaction to the RBC and TD switch to ADRBO.
 
Garganis questions the relationship between the banks and ombudsman-for-hire entities like OBSI and ADRBO.
 
“It is an obvious conflict of interest,” he says. “Although some of the most recent reports from OBSI do show that complaints are on the rise – at least the reporting is on the rise. But how many of those complaints are addressed and resolved?”
 
Garganis finds mortgage specialists are not held up to the same level of accountability that mortgage brokers must maintain.
 
“Brokers have a disclosure process and are far more accountable, especially since the Broker’s Act of 2008,” he says. “These mortgage ‘specialists’ are out there brokering deals for one bank – they are in effect mortgage brokers without the accountability. These new regulations offer nothing to keep them and the banks up to our standard.”
 

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18 Comments
  • Versico Financial Inc. 2013-04-12 9:11:46 AM
    If the brokerage industry wants to see these bank road warriors licensed then it should put pressure on the Provincial mortgage brokerage regulators to stop exempting these individuals from their respective legislation's.
    The bank contracts with these agents are mortgage brokers in all but name and registration. In some contracts they are even authorized to open bank trust accounts.
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  • James Shinners 2013-04-12 9:16:07 AM
    I'd rather not have all bank mortgage specialists become mortgage brokers.
    Post a reply
  • Confussed 2013-04-12 9:16:33 AM
    This article was hard to follow...mortgage professionals, mortgage brokers and mortgage specialists - all seem to be interchangeable within this article. Perhaps defining each would clear things up.
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