Broker: Cut 2,000 'non-committed`agents

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A broker-owner is sending out a challenge of sorts just ahead of Ontario relicensing, asking other brokerage heads to join him in cutting loose “non-committed agents”– a number he pegs at no less than 2,000 in his province, alone.

“I’m just now undertaking the process and choosing not to renew about eight of my agents who are just not committed enough to the industry and mortgage brokering,” said Paul Mangion, principal broker of The Mortgage Centre - M.O.S. MortgageOne Solutions Ltd. , in Mississauga. “I’d like to see other broker-owners take a look at their own agents and look at not renewing them either as a way of increasing industry professionalism and efficiency.”

The call to action comes just ahead of next month’s licensing renewal deadline for all of Ontario’s 12,000-plus agents and brokers. Each is also required to show proof they’ve completed the province’s first-ever relicensing course, designed to improve compliance with provincial laws.

That last process is expected to cull as much as 15 per cent of Ontario agents, who’ll voluntarily opt to leave the business rather than submit to that educational component.

Mangion is the first to suggest the industry give those discouraged or inactive agents a push, rather than renew them for another two-year term.

For some brokerages, it would mean giving up the lucrative monthly fees they charge their part-time, or casual, agents. Mangion’s brokerage is not one of those.

In fact, his move to cut ties with several agents ahead of relicensing should ultimately increase his productivity, allowing the brokerage to focus its training and professional development efforts on a smaller, more dedicated team.

“I think more (broker-owners) should be moving in that direction because there are too many agents without a vested interest in the industry,” Mangion told

  • Cory on 2012-02-29 5:04:08 AM

    Best article in months. I have been an advocate of this business practice for 2 years now but every time I bring it up I am the brunt of the backlash; how I don't support people and that there is a place for part time workers in this industry. The non committed, non producing people are in my opinion the biggest issue in the industry. They are a huge time commitment from a Broker's perspective, they are a large reason why lenders want efficiency, they contribute to confuse the public with messages that may not be clear and they are reasons why profitability has turned to the low it is today. At the end of the day you can not run a professional business with part timers taking up such a large part of it. The banks don't do it, why should we?

    I applaud you Paul, I wish more Broker/owners had the courage to follow this practice. I have a small office of 5 licensees, used to be 10, but I have elected to move a few of them out of the industry. Our productivity is much better, our team morale is much higher and if more followed suit our business would be able to stop talking about interest rate competition. Clean up the business, the public WILL take notice and the rate conversation will slow if not cease. i know the part timers will suggest the reason they may be part time is because they don't get support from the Broker. Our brokerage is full of the best programs and all agents get great support. The reality is you can take a horse to the trough................

    And while I am doing my part there is a Broker down the street who is licensing people at the drop of a dime, many of them part timers transitioning from some other part time job they won't work!

  • Mike Distefano on 2012-02-29 5:06:13 AM

    I Agree get rid of non dedicated full time agents!

  • Ontario Broker on 2012-02-29 5:16:59 AM

    This should include certain Brokerage Houses advertising for part time Mortgage Agents.

  • Yeah right... on 2012-02-29 5:17:25 AM

    some brokers are TERRIBLE at training & development and their only aim is to get you on board to take a cut of your deal.

  • Nolan Matthias on 2012-02-29 5:21:57 AM

    This is disappointing, our industry needs to give its head a shake.

    Cut 2000 agents that had every intent of making a career out of this, when the banks are adding thousands? It is time for brokers to start looking internally for answers rather than blaming the minority.

    How about we quit acting like we are victims of part time agents and realize that it is the people who are successful in this industry who have failed the very agents they are complaining about.

    How about we find a way to give them the tools to be successful, teach them how to actually generate business instead of just 'mentoring' them for 50% of their first five deals, and help them earn a living.

    We focus on how they fail to act professional, when in reality we as an industry have failed to have the professionalism to quit acting like victims and realize that we have failed to provide any sort of standardized system that would help make part-timers a success.

    We aren't the victims of the part timers, they are the victims of our lack of ability to pass on a half decent skill set.

    Its time to start looking for real solutions my friends. Time to quit blaming the banks and part-timers for the mistakes we have made as an industry.

  • James on 2012-02-29 5:34:39 AM

    @ Cory, the guy down the street will give up the hiring of part timers once he realizes he will be fielding calls from all the dis-satisfied clients his part timers are working with. He will spend the better part of his efforts doing damage control instead of maintaining his own client base. Hopefully that broker will leave along with his part time sales force

  • James on 2012-02-29 5:41:07 AM

    @Nolan, a number of the part timers I have come across have no intention of ever making this a full time career. They are Fire Fighters or other public service employees making use of great pay and too much free time. Just looking for big money part time and they choose our business or real estate agent. I agree if someone is committed and working at this full time they do deserve our support and time to make them more capable in our industry. Just an observation

  • Ottawa Mortgage Broker on 2012-02-29 6:09:54 AM

    If an agent is properly trained and see's the advantage of making this a career, he/she will make it a career. I lay the blame with the broker/owners who lack the knowledge themselves to train agents so it can become a career for the new agent. To many agents/brokers operating teams or offices that have no business doing so. They just want to add to their income by taking a piece of someone elses business under the disguise of mentoring or training. This is a problem right across Canada. That being said, shame on the broker that hires any new hire knowing they have another career that takes precedent over the mortgage industry. It comes down to broker greed, plain and simple.

  • @kiltedbroker on 2012-02-29 7:40:40 AM

    Well Done

  • Roger on 2012-02-29 8:03:10 AM

    I am always challenging my team. We have placed minimum volme commitments in place and we monitor these diligently. Mentoring a new recruit should be a detailed process where they will be successful or realize this industry is not for them. You need to spend quality time with them and then either help them make the decision to leave the industry (brokerage) or make it for them. Tools alone will not make them successful. Hands on mentoring is key. Business planning, monthly activity reviews and such are key to understanding if the recruit has what it takes be a success.

  • Learning the business... on 2012-02-29 1:39:06 PM

    Oh please,

    Most Brokers Don’t Have a Clue About Training:
    Your average broker DOESN'T HAVE A CLUE about how to train mortgage agents to be successful in this industry. Thank goodness I don't depend on any of these people whose only intention is to get you in there, start demanding deals, provide little support, and take a big cut. There are a few brokers that provide great training organizations, but they are few and far between.

    In one of the offices I worked in, the worst time to be there was when you finally had a few loans in the pipeline - because that's when management found a reason to fire you so they could close the loans and swipe the entire commission. CROOKED. And, often they treated the reps as if they could care less if the loan closed or not.

    Protect Your Finances:
    When you enter the mortgage business, you have to build a pipeline. That takes time and marketing dollars. Even if you have the funds saved, you have to be able to whether the storms when things don't go well. THAT is why many people SHOULD keep their jobs if that will make you more financially comfortable and stable in the short term. Unless you're living at home with mommy & daddy, how are you supposed to pay your bills until you develop a pipeline and start CONSISTENTLY closing a certain minimum number of loans each month? You DON’T want to be living loan to loan.

    As agents, we pay our own way to keep our licensing going or we're out of the industry, so this is really about brokers starting a business and not knowing how to develop staff and/or being too lazy to do it. IT TAKES TIME. If you're not willing to put in the time or you're just not a good teacher, admit that and stop blaming the agents.

    How to Choose a Broker:
    Most consumers don’t know the broker names very well and after telling you they’ve never heard of your broker before, they’ll complete the application if they need your services, so don’t be too impressed with the big brokers bragging about their name recognition. Base your broker choice on whether they offer the support and services you need. Also, the bigger the commission split FOR THEM, the more they’d better be doing for you.

  • Dedicated Broker on 2012-03-01 1:40:27 AM

    With 25 years experience in this industry we made a conscious decision a while back to eliminate our part time Agents. Both parties, Broker and Agent, have to be committed to the process, our decision after years of experience was to focus on our core business and do it with dedicated full time Agents, some of whom were part time at one point in the past. At the end of the day it is all about adding value and bottom line contribution. Training and management of all Agents, full time or part time, is time consuming and expensive, so you have to weigh the odds. As an aside, I know a personal trainer at a local gym, an ex-steelworker, have talked to the individual on many occasions, lo an behold when I mentioned to them we are in the Brokering business he told me he was a Mortgage Agent with a local firm and had been doing so part time “for years”. I don’t want to deprive this individual of the opportunity to earn a living, and would clearly not be a fit for our Brokerage, but with no financial background, and as he put it almost “zero sales”, is this the type of Agent we want representing our industry? I think we need to tighten up, we have, and set industry regulations and course mandates that ensure professionalism and dedication. Who cares what the banks are doing, we have much more to offer, focus on core competence and adding value!

  • parttime Agent on 2012-03-01 2:24:10 AM

    I have been with a brokerage which also deal in real estate and principal broker does not have time or required knowledge to train or grow the agents under him, He is doing huge business on his own but some how lacks interest to the agents working under him. I have worked with big brand bokerage too but lost more deals to banks becuse of lack of support and deals not going through on time. The reason some part time agents remain part time is because they are stuck with non committed brokers. People who dont see this profession as paying profession will eventually fallout but in my opinion brokers should show more commitment from their side too and make an extra effort to grow all the agents they sign up. I see lot of brokers advertising " become mortgage agent in 2 days one week etc" " make extra money in spare time" this kind of easy money system should be stopped and entry requirements should be increased so people who are serious about this industry only will join.

  • Paul Mangion on 2012-03-03 5:31:05 AM

    I will agrre that there are to many brokerage houses that should not be allowed to recruit (blind leading the blind)but that is a different storey. I will also disagree with putting all the blame on your existing brokers. You have to take resposibility for whom you sign with. Do you think he suddenly became a bad broker after you signed with him. Instead of asking what the splits are or if I get volume bonus you should be talking to his existing agents to find out what they are really like. Every agent that has treated this like a business and applied themselves have succeeded. The ones that spend a day looking for a printer that will give them some crappy card for $20.00 instead of using an approved printer is the ones I am talking about.

    This is a business and like all good business's you have to plan, give it the time it needs and invest some money. There are so many good people that train out there but you won't pay them and when I share my experience and systems for free few show up and many that do never act on what they have learned.

    If somebody standing in front of you makes a good living as a mortgage broker then you should listen to what he has to say.

    I make substantial monetary contributions to training thos individuals and when you find someone that gets it it is very rewarding but when I hear part time agents complain I merely ask them how much money and time did they spend on there business whether it was learning or marketing and you will then have your answer why they are failing.

  • Paul Mangion on 2012-03-03 5:37:40 AM

    Those part time agents that choose a broker that is two years into the business and closes two deeals a month if they are lucky should give there head a shake.I will never higher an in experienced agent that asks for volume bonus, It is called volume bonus for a reason, VOLUME and I hardly think an agent without volume is entitled to it. Most of you guys complaining is sucked in by a useless broker who hardly does any of his own deals because of splits or foolish promisses. Remember 100% of nothing is still nothing. It costs money and time to run a successful shop and the old saying is usually true in most cases, you get what you pay for!

  • Elfie Hayes on 2012-03-03 6:26:07 AM

    Consider this for one moment please.
    Would you have any success if you decided to open a business. Let's say for you are a Dentist. You are only prepared to work a few hours a week. Nights and a little on the weekend. You don't have any money to carry your business until you build up your clients and you start to earn income. You still work at another job full time Monday to Friday. You don't have enough experience at Dentistry to handle every need that the client has. How successful would you be even if someone offered you training???

    This is how it is in Real Estate and in the Mortgage Industry. I worked full time in R.E. for 22 years and when I decided to change roles, I left that career and dedicated myself to being a full time Mortgage Agent. I worked my butt off and grew my business.

    I have a team and each time I hired a part-timer it was a dismal failure despite all the help that was provided. I just released 2 non-producing agents so that I can use the resources I have to help the other 6 continue on their successful path. I will not hire any more part time agents.

    In my mind a profession is a full-time commitment to the business and the clients, not a sideline to make a few extra bucks. Our clients rely on us for knowledge and experience to protect them when they need financing. How can you think you can offer this when you do 1 or 2 deals a year in a part time situation?

    Sorry to those who disagree but I'm with Paul on this one. Life as a Mortgage Broker is getting tougher and those who are committed will still be standing in the long haul so they are the people I am committed to.

  • Paul Mangion on 2012-03-03 8:18:38 AM

    Well Said Elfie Hayes. Maybe these words will light a spark in some agents and kill the dreams of others.

  • Paul Therien on 2012-03-04 1:15:41 AM

    I think we need to be careful about using the term "part time"... I know many brokers who only work part time, who are very good brokers, but choose to have a work life balance. They make decent money, and are serving the needs of their clients. Not everyone wants to make a large six figure income (as hard as that might be for some people to believe it is true).

    That being said, those who are in this industry because they felt it would be a quick buck... And there were a LOT of people who entered the industry to ride the wave. Well it might have been that way once upon a time... But that time is over. That fact alone will make many people rethink their career I the industry, much as it does in other industries.

    I would say this... Before you arbitrarily start cutting people because they are part time, have a conversation with them, find out what their goals are, their commitment level, then most importantly, decide if that person is a fit for your business. Then make a decision based on that. Because no matter what you do, there will be a business owner there who will let them join, regardless of part time or full time.

    Also... It is the job of the broker / business owner to train, mentor, and manage their agents. It's why they are sub brokers to you, and why 90% of them came to work with you in the first place... Because you promised to deliver those very things to them. If they are not performing... Ask yourself... Did you deliver what you promised you would?

  • Jim T. Advent Mortgage on 2012-03-05 10:47:53 PM

    The problem in this industry is not the part-timers but instead is the low barrier costs to entry. The requirements to enter this industry are a pathetic joke. I know guys who have become brokers with no real experience and funding no deals at all as an agent. They just take the required course for a week and they now run a brokerage. They then turn around and hire 100's of agents who have similar no-experience. The blind are leading the blind. The end result is the reputation of mtge brokers goes down the toilet. If I had a nickel for everytime I got into a taxi and the driver handed me his mortgage agent card. This industry needs to revisit the standards to enter this business and raise them exponentially. Then you will see the number of both part-timers and full-timers that have not earned the right to call them themselves mortgage professionals drop like flies.

  • Paul Mangion on 2012-03-07 1:38:16 AM

    Well said Jim. Paul Therien, I did not say cut the agents because they are part time, I said cut the non commited agents. Non commited agents are the ones that cause all the problems. While we are at it we should cut all the non commited brokers so maybe there agents will have a chance with other commited brokers.That should elimintae 90% of the Real Estate Brokerages in house Mortgage Offices that are actually being run by agents while the broker worries about his Real Estate Office.

  • BP singh on 2012-02-29 5:58:37 AM

    Please tell me all what will happen to New agents who just enter the industry and later on want to make it a career.Sometime it takes time to establish relationships with people.They also need income to fulfill their daily needs.

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