One broker’s victory over REDX marks an end to the kind of long battle too many industry professionals say they’re fighting because of AMP memberships.
“I got my lawyer to write a letter to REDX,” Shawn Allen of Matrix Mortgage Global told MortgageBrokerNews.ca. “Pretty much to the effect that the inquiries were detrimental to my business and we needed them correct them and they ended up updating the REDX and removing the reports.”
The reports were created when Allen took out his AMP membership and then again when he cancelled his membership. However, all lenders were privy to was the fact that these reports were created – not why.
“Lenders looked at the REDX report and if they see inquiries, they don’t want to do business with you,” Allen said.
MortgageBrokerNews.ca began following the story in June of this year when Allen, frustrated by the detrimental effect the REDX reports were having on his business, reached out to vent that frustration.
“I don’t really like turning to the media, being a part of the story, like this – but I don’t know where else to turn,” he told MortgageBrokerNews.ca in June. “But come July 3, if these reports haven’t been removed from my record, I will file papers and sue CAAMP and REDX.”
Thankfully, it didn’t come to that as the mere threat of legal action against REDX was enough to have the reports removed.
“I reached out to REDX on my own (to no avail) so I had to get my lawyer involved,” Allen said. “The letter said I would take legal action if they aren’t removed.”
Now that the debacle is finally put to bed, Allen has advice for brokers who may find themselves in a similar situation: Pay the nominal fee a lawyer charges for a similar letter.
“It was pretty inexpensive to get the lawyer to draft the letter -- $600 but it was worth it because I can get back to business.”