Broker channel bank offers referrals to Realtors

Broker channel bank offers referrals to Realtors

Broker channel bank offers referrals to Realtors An email from National Bank promising commissions for Realtors who bring referrals directly to a branch will likely upset its broker partners.

“From the standpoint of supporting someone and then finding out that they’re going over your head or trying to cut into your business it just doesn’t make sense,” Mark Fidgett of Verico NotaPennyDown told MortgageBrokerNews.ca. “I hope as an industry we can respond as a group because one-offs just don’t do it; they won’t care.”

Fidgett received an email from a Realtor referral source that was sent from a National Bank mortgage development manager to Realtors soliciting direct referrals.

That National Bank employee refused to comment on the referral program.

“I can’t speak on behalf of the bank,” Helen Prasad, mortgage development manager for National Bank told MortgageBrokerNews.ca. “The information you received was for Realtors that were in some way in my database through business or through other means but to find out any more details you’d have to contact National Bank; as you know at a bank we are not at liberty to talk about bank policies unless it’s with our contacts.”

The original email, obtained by MortgageBrokerNews.ca  contained information on how the referral system works:
•             Meeting is set with the client at the location of their choice
•             The client’s file is processed quickly, Realtor is advised of status      
•             The file is followed up until the funds are disbursed
•             Referral Commission is sent to the real estate office after closing
 
This isn’t the first time such offers have been circulated to real estate agents, and brokers will likely see this as a snub from the lender, which relies on brokers for a great deal of its mortgage originations.

“I don’t like it and I don’t think any brokers will,” Fidgett said. “I think it’s going to drive a lot of brokers to really think about who they are supporting.”

Calls to a National Bank rep were not returned.
 
31 Comments
  • Mike 2015-05-15 9:44:34 AM
    And this is news, NBC has paid realtors for years, because when you have a product like theirs you need to give some incentive. Other banks have points, what is the big deal. I tend to give the realtors who send me business client referrals. So do you want a BBQ or do you want to earn $8000? I think the math is pretty simple. Funny how most realtors don't get it. They should be lining up to get me to send them business but I never get a realtor calling on me and I am the one that has the clients.
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  • James 2015-05-15 9:49:25 AM
    It ain't rocket science. Any broker who thinks and continues to think a Bank is their buddy and is too lazy to source alternatives is ....
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  • Mike 2015-05-15 9:59:16 AM
    ....but banks are my best friends. They make is so easy for us to look good without even trying hard. Just picking up the phone and not having voice mail hell puts us way ahead.
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