Broker proposes solution for last-minute deal killers

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A united voice is needed to bring about change within the lenders, one broker argues, especially when it comes to last-minute requests that can result in lost deals.

“Brokers often have problems with lenders and we don’t have the strength as individuals to deal with these issues and bring about change,” John Gimblett of RMA Mortgage told “If a national association used its resources to implement an individual as an ombudsman they could collect broker complaints about lenders and present them on behalf of those brokers.

“It would give these problems a lot more merit and draw a lot more attention.”

Gimblett’s suggestion follows a story about the growing number of files being sent back by lenders with demands for additional information with too little time to meet closing.

Lenders are sometimes informing brokers of issues with files after it’s too late, one industry player told last week.

According to Ross Taylor of Mortgage Intelligence, a lender informed him on the day the property was meant to close that the client’s lawyer was on their “do not work with” list. Taylor was tasked with finding a new lawyer to sign off on the deal, but it was too late – the client chose to work with another mortgage provider as a result.

And since then, a number of brokers have also taken to the forum to share their experiences.

For his part, Gimblett argues the issues will continue unless the matter is addressed on an industry-wide level.

“When a broker complains to a BDM it could be viewed as sour grapes, but if an ombudsman were to present a number of similar complaints from a number of individual brokers, lenders would take these complaints more seriously,” he said.
  • Robert Clancy on 2015-09-01 10:17:21 AM

    Thanks for post. I totally agree. This has being a growing concern over the last year or so. I have had 3 deals go this way. Fortunately I was still able to close but not without allot of stress. My thoughts are the tighter back end auditing is causing the problem. Lenders need to get files over to audit sooner to avoid the problems occurring. That way if something is missed by the underwriter or conditioner officer the broker or agent has time to fix or collect document. There is really no reason for this to be happening.

  • Tim on 2015-09-01 11:00:53 AM

    I suspect is a staffing issue more than anything else: doc review takes too long, and problems only come to light upon review (i.e., at the last minute).

    I think Lenders are having difficulty finding qualified candidates, and in any event are reluctant to hire sufficient staff to meet current volume needs, for fear of having to lay them off should volumes subside.

    As Brokers, we have to do out best to manage expectations and stay one step ahead of underwriters: many (most?) lenders publish lists of Approved Solicitors, and you can always call the BDM if you are unsure of the solicitor your customer has selected.

    Kinda not fair, but that's life as a Broker ...

  • Ron Butler on 2015-09-01 11:21:51 AM

    Staffing is definitely part of it but systems are a bigger part of it. At the very big monolines they have built out tech that speeds their processes significantly.

  • M A on 2015-09-01 12:34:23 PM

    I thought I was the only one. Last year I had several files like this. Lucky I did not loose any of them but my customers did have sour grapes at the end. Everything from last minute or the need for more information past the normal blood and urine examination. But we experience the lawyer bit and we ended up bullying our way through with threats of notifying Amba, Caamp, Reca and notifying the brokers of Alberta with nonsense of an approve list of lawyers. I know the BDO's read this or subscribe and their hands are tied in most cases, but when it comes down to either loosing the deal or that your customer has so many sour grapes and it doesn't matter to them that we are only the messenger they may never be repeat customers. My lawyer was "a major builder lawyer in Calgary" whereby they cover the fees. Also a huge law firm. Yikes!

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