Broker: FSCO to blame for channel mediocrity

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Probably 75 per cent of brokerages are operated by unsuccessful mortgage professionals, and that can be laid at the feet of FSCO, says one broker.
 
“If you really want to protect the consumer, get stricter on who can open a brokerage,” says Paul Mangion, principal broker with The Mortgage Centre MortgageOne Solutions. “FSCO is all about protecting the consumer; but if you can become a broker after only two years of being a mortgage agent, you end up with what we have – about 75 per cent of brokerages that are operated by (what were) unsuccessful agents.”
 
Mangion argues that there’s simply insufficient screening of individuals coming into the broker channel, where only their knowledge of product is tested, not their aptitude or passion for the job.
 
“Some people need to punch a clock to work, they should not be in the industry,” says Mangion. “And there are all sorts of excuses – the TV is calling, the fridge is calling, the kids are calling – and they blame everyone else. You need self-discipline and drive to succeed.”
 
Mangion’s comments come on the heels of Market Regulation Branch Director Anatol Monid’s announcement to some 400 brokers at the recent IMBA conference that FSCO will be cracking down on procedures and requirements among brokerages.
 
Mangion, whose brokerage has 50 to 60 agents at any one time, routinely hires new agents and puts them through his own in-house training program.
 
“We do take on new agents, and we give them one year of proper sales training,” he told MortgageBrokerNews.ca. “Nobody has any proper training when they enter the channel. A lot of the agents are lazy, and they think it is easy money. I’ve been training agents for almost 13 years now, and I see this happening time and again.”
 
Mangion wants FSCO to step up and canvass agents who are moving from brokerage to brokerage.
 
“I’d like to see FSCO take a more proactive approach on this,” he says. “It should ask, ‘Why did someone leave an office?’”
 
Compounding the problem are part-time brokers, says Mangion, who no longer hires part-time agents at his brokerage.
 
“The worst of the damage done to this industry is from a lot of these part-timers,” he says. “You are making the single biggest purchase of your life, and you want a guy who drives a taxi for a living doing the deal? Let’s face it – they are only in it for the quick cash, not serving the client.”
 
  • Dale Koeller on 2013-04-23 7:26:13 AM

    We can't blame regulators for lack of professionalism in our industry, we can only blame associates and brokers. We should not ask regulators to police professionalism in our industry, we can and should only ask them to police the low bar entry to protect public, as this is their mandate. It is up to us as professionals to raise the quality of our industry - each of us as individuals, and the teams we lead.

  • Paul Mangion on 2013-04-23 7:44:04 AM

    Dale I do agree with you. But if they can at least narrow the field for us that would be great. Because right now there is just too much garbage for the real professionals to prop up. Cheers.

  • anil walia on 2013-04-23 9:32:10 AM

    THE FAULT is FSCOs.
    The Market Conduct Division headed by ANATOL MONID is inefficient/ corrupt and Clanish.

    The investigators have NO knowledge but act like POLICE Hounds to keep their jobs and fat pensions

    These appointments should be rotated every TWO years otherwise FSCO Regulators act life a MAFIA- unchallenged by PHILIP HOWELL/Grant Swanson

  • A Broker on 2013-04-23 9:44:43 AM

    Not FSCO's fault. Look at all the brokerage houses making their money based on monthly fees from sub par agents. Stop hiring based on whether an agent has a pulse and is sucker enough to pay the fees and start basing your income based on agents actually doing business. Also how many agents from other large brokerages have I talked to that ask me who prepares NOA's, salary letters and deposits for me because that is how they do business at their brokerage now. No thanks.

  • Layth Matthews, CEO RateMiser Mortgage Advisors on 2013-04-23 9:49:07 AM

    I think regulation and compliance is a very different skill set than being a successful agent. But it is time for a more positive relationship between brokers and regulators. Chogyam Trungpa makes the distinction between leading and presiding. Leading is more by providing examples of - excellent procedures manuals and sharing best practices around the industry. Inviting brokers in to review their materials with a human. Presiding is more the lazy enforcement approach, where the whole industry is held hostage to the fear of a sudden audit! It sucks everyone's blood to live under the spectre of that alone.

  • reach by the mine poor by reality on 2013-04-23 2:36:22 PM

    Anil Walia I agree 100% with Your comment:THE FAULT is FSCOs.
    The Market Conduct Division headed by ANATOL MONID is inefficient/ corrupt and Clanish.

    The investigators have NO knowledge but act like POLICE Hounds to keep their jobs and fat pensions

    These appointments should be rotated every TWO years otherwise FSCO Regulators act life a MAFIA- unchallenged by PHILIP HOWELL/Grant Swanson

    Also A-Broker too who said:Look at all the brokerage houses making their money based on monthly fees from sub par agents. Stop hiring based on whether an agent has a pulse and is sucker enough to pay the fees and start basing your income based on agents actually doing business. I've been riped of for 45% from each deal just for brokers office +5% to main Brokerage and 15% to local brokerage + $180.00 monthly for local brokerage. and no trainig at all, just help your self. Shame to all.Here we have good control and start up for new Agents. all top org. looking only for fees insurances and longest if they get a $buck.

  • Paul - CENTUM on 2013-04-25 10:00:57 AM

    The regulators job is to ensure that a licensed individual is compliant with the act and in the event that they are not – they have the authority to suspend or cancel the license. The regulators set the standards by which we are to govern ourselves, and it is up to us to meet those expectations. In the event that we become aware of an individual that is not compliant with the act, we have a duty to report that person. Not only to protect the professionalism of our industry, but because under the act we are required too. This applies to almost every jurisdiction in Canada.

    No regulators has the manpower to police each individual person in our industry on a daily basis, just as in the rest of society the police cannot do this. We live in a country where we each make the personal choice to uphold and obey the laws, or to break them. If someone chooses to break those laws, they always eventually get caught, and almost 100% of the time it is because a law abiding citizen reports them.

    I would however also caution… caution… it is very easy to point the finger and accuse unprofessional behavior. We need to remember – there are two sides to every coin, and sometimes what we perceive as being unprofessional is not necessarily the case. Every professional at one point or another in their career will be accused of wrong doing by someone; a customer, disgruntled employee, or a competitor. Sometimes the accusation is very accurate, and others it is not. Where it is accurate then yes, the regulator needs to act, but we also need to give each person the opportunity to defend themselves and prove their innocence. There is an old saying that we used to learn in school – Witness, record, and report. If you seeing something wrong happening, record it and then report it to the proper authorities. Then let them do their jobs. If you do not report… well… you probably should not complain when something is not done to remedy the situation.

  • anil walia on 2014-08-06 3:21:08 PM

    I feel the MAFIA at FSCO should be FIRED enmasse- THESE IDIOTS with NO knowledge of INSURANCE have corrupted the system.

    CHANGE will bring HOPE- HOPE The Liberals TRIM the FSCO FAT...

  • Ron Butler on 2014-08-07 10:40:54 AM

    In all our interactions with FSCO we have found the staff to fair, polite and honest. The negative accusations in this comments section are ridiculous. As Paul said it is not reasonable to think FSCO's staff are mortgage brokers, they are regulators and that's what they do. Could we all wish they had direct experience doing our jobs? Sure we could but that is not going to happen.

    While I completely understand many of the points Paul Mangion makes we have to be careful not to be self serving. If we limit brokerage ownership to 5 years experience, multi-year course loads and other restrictions we have to realize we may be creating a world where existing broker owners have a monopoly. In many other professions once you have your ticket you can open a business, mechanics, accountants, lawyers, it's a long list. Perhaps as Dale mentions the point should be greater initial and on-going education.

  • zoomortgage on 2014-08-13 9:43:36 PM

    I agree that they are regulators and that's what they should do. The more government involvement in your business the more difficult it becomes to succeed. If a brokerage doesn't properly train there agents, the affects will eventually be bad for the brokerage.
    Remember one thing is that bad news travels much quicker than good news.

  • Agent no more on 2014-08-16 10:28:40 PM

    Sad, but that what happen to me exactly as bellow (Look at all the brokerage houses making their money based on monthly fees from sub par agents. Stop hiring based on whether an agent has a pulse and is sucker enough to pay the fees and start basing your income based on agents actually doing business. I've been riped of for 45% from each deal just for brokers office +5% to main Brokerage and 15% to local brokerage + $180.00 monthly for local brokerage. and no trainig at all, just help your self. Shame to all.Here we have good control and start up for new Agents. all top org. looking only for fees insurances and longest if they get a $buck. I couldn't make any money for my family, because fees and membership and insurances eat all my deal. sad very sad.

  • Anil Walia on 2015-05-08 10:28:43 PM

    FSCO remains inefficient as the same MAFIA are still there- ANATOL MONID and his Cronies- POWER CORRUPTS- EASY MONEY Creates ARROGANCE-
    ROTATION of POSTS a must
    RETIREMENT at AGE 60 Mandatory

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