Teranet is now confirming the MortgageBrokerNews.ca report it will overhaul its controversial use of AMP records on the REDX system.
Teranet is now confirming the MortgageBrokerNews.ca report it will overhaul its controversial use of AMP records on the REDX system.
“Effectively immediately, and until further notice, AMP designation reports, including all historical reports will no longer be reported, found, or captured within REDX,” the official press release states.
The statement, obtained by MortgageBrokerNews.ca Friday, claims that although AMP designation reports were distinguishable from other reports by an identification code, Teranet has decided to cease recording AMP information to ensure no brokers are unfairly flagged by lenders who view their profiles on REDX.
“In order to ensure brokers and agents are not being unfairly or unintentionally penalized for not maintaining an AMP designation, this information has since been removed from REDX,” Paul McGowan, the national marketing manager at Teranet, says in the release. “This will in turn produce cleaner reports with less confusion.”
The change in policy confirms what sources told MortgageBrokerNews.ca earlier this week. It also is expected to allay the concerns of hundreds of brokers who charge they have been unfairly blacklisted by REDX.
The database is meant to provide lenders with information about fraudulent broker activity. But many lenders have treated each profile entry -- whether a report of genuine fraud or a change in AMP designation -- as a red flag. The result is the AMP designation entries have been viewed in the same light as more negative entries. This has led to certain lenders treating brokers who have dropped their AMPs as high risk or persona non-grata.
REDX in fact draws its data from both public and non-public information and that exhaustive list of data, save AMP status, will continue to be made available to broker channel players who subscribe to the database.
“Public information can include disciplinary, enforcement, and certain legal actions taken by regulatory bodies and self-regulating organizations that oversee professionals in the mortgage, real estate, appraisal, banking, securities and related financial services industries,” the release states. “Non-public information can include incidents of alleged fraud, material misrepresentation and misconduct by related industry professionals and companies.”
