Broker says his client stolen by bank

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One big bank denied a broker client’s deal only to approve the same client when he walked into a bank branch.

“We sent a deal to [one of the major banks], waited for a couple of days, the bank came back and [said] they would decline this deal,” Joseph Park, principal broker of JP Mortgage Services, told

Park then lined up a mortgage with another lender. However, the client decided to visit a branch to inquire about a mortgage and was then approved for a loan at a better rate than Park had arranged, according to the broker.

Park has asked that the name of the bank be withheld.

When asked about the unfairness of the process, Park was told by the BDM that “life has never been fair.”

“I was told ‘Joseph, it is much cheaper for our branch to do a mortgage because then we don’t have to pay you [a commission],’” Park said.

This isn’t the first time a broker has complained about an uneven playing field when it comes to dealing with big bank lending partners.

Last year, broker Walid Hammami criticized a lending partner for offering certain products in-house only.

“Lender banks are our partners and they compete against us and it’s just not fair,” Walid Hammami, a Montreal-based broker with Dominion Lending Centres, told last August. “They offer certain products in-house that they don’t offer us.”

One bank denied him the ability to offer a home equity line of credit that the bank limited to its branches and road reps.

“And there is no reason for that; the only reason they do this is to give themselves an advantage,” he said.
  • Charmaine on 2016-04-18 9:11:43 AM

    Hence, the reason why they decline the deal with the comment "as presented" to cover themselves when this happens. Joseph, this has happened to many of us. We need to hang in there, educating our clients about the difference between collateral and non-collateral. Remember our market share is growing!

  • Dave on 2016-04-18 9:16:48 AM

    This is why you should never send business to a bank . They are the enemy.

  • Bob on 2016-04-18 9:36:09 AM

    Happens all the time. You need to get the client to sign a letter of exclusivity to have the mortgage approval assigned to you. You should have no issues being compensated, but if you do... Then this becomes VERY public.

  • Jim on 2016-04-18 10:09:51 AM

    By not disclosing the name of the bank is playing into there hands.
    Better yet don't even complain if you don't have the stones to disclose fully.

  • Chris on 2016-04-18 10:30:35 AM

    So once again the question has to be... why do brokers insist on dealing with these lenders? The old arguments that the client insists on going with that lender is hogwash... the client is coming to you for your advice, they will 99% of the time go with the lender you recommend.

    I never deal with the big banks - I deal exclusively through the monolines, and when I made the transition, it did not impact my business at all.

    Keep doing the same thing, and expect different results = stupidity.

  • Ruth on 2016-04-18 10:33:45 AM

    Um, question... before brokers the client was the banks yes? So it is OK for brokers to steal away bank clients, but not the other way around?

    Sounds like mortgage brokers need to give their head a shake. You've been taking business away from the banks for years, and your market share is growing. You did it all by telling the consumer how bad the banks are and how much better you are.

    The banks fight back... and it's poor me the bank stole my customer.

    Give me a break.

  • Paul Mangion on 2016-04-18 10:59:30 AM

    Maybe you need to re consider who you do business with.

  • Joe on 2016-04-18 11:11:10 AM

    that's why you should deal with banks that only deal with brokers and not the clients directly.

  • Susie on 2016-04-18 11:43:15 AM

    Yes, I agree with Jim. Why bother to complain if you are not willing to fully disclose who the lender is? But there have been several banks that I have encountered that I find have been unethical and bite the hand that feeds them. Such as TD Canada Trust and Street Capital.

  • Julie Malo on 2016-04-18 12:24:19 PM

    I've had this happen several times as well. I even had a client walk into a credit union per the advise of a realtor after meeting with me, got declined. I convinced his parents to cosign and help with downpayment. Sent in a complete file, they approved it, but since the client went in before I sent the deal there, they said I couldn't take credit for the deal and weren't going to pay me. Next time lesson learnt as to where their loyalties lie.

  • nick on 2016-04-18 3:30:57 PM

    paul you hit the nail on the head. Why are you dealing with the major banks in the first place. There are definitely better rates available and competitive finder's fees. Surround yourself with better options and perhaps you won't have to complain about a bank stealing your client. And by the way it was not your client to begin with , nobody owns the clients , they are free to choose who they want to deal with just like you are free to choose which lenders you would like to deal with.

  • doug on 2016-04-18 3:35:22 PM

    lol...happens to me on a regular basis. Banks bend the rules to make the deal work. They are not under the same compliance microscope brokers are.

  • Rosie on 2016-04-18 3:53:50 PM

    I Agree with Jim comments' above....
    By not disclosing the name of the bank is playing into there hands.
    Better yet don't even complain if you don't have the stones to disclose fully.

  • Omer Quenneville on 2016-04-18 10:57:00 PM

    Why deal with the major banks when there are better options out there? Banks are not interested in anything other than the bottom line at all cost, including future business. Unfortunately we have too many nonprofessionals out there for the commission today and not about nurturing an industry along.

  • Matt on 2016-04-19 8:36:18 AM

    Jesus- "its not fair..." LOL. Guy sounds like my 4 year old. Grow up and count yourself lucky you not in a Hyundai dealership shlepping accents.

  • Gerald Klassen on 2016-04-19 10:35:47 AM

    This is complete rhetoric. The assumption that ownership of the client resides with the person who pulls the credit bureau is absurd. The bank didn't 'steal' the client per se, but we all know that banks have different lending parameters in-house versus for brokers. In-house they look at the total value of a client (investments, bank accounts, etc.) and are able to make a solid decision based on that. You know this, I know this, and don't complain because your client got 'stolen' by the institution you were trying to steal them from (by referring them back in to get paid).

  • Bob on 2016-04-19 10:55:39 AM

    I worked on both sides, easier to get exceptions from the inside. Like it not Brokers are not real partners they are channel for new clients to banks where they can cross sell more profitable products, and with an ever decreasing spreads a more and more expensive option. Like it or not if tomorrow there was a less expensive option for banks to find mortgage clients they'd drop out of this channel in a heart beat

  • Paul on 2016-04-19 11:32:52 AM

    We just don't use any of the banks. Monolines only for us

  • Rick Brushett on 2016-04-24 4:26:44 PM

    I cannot even begin to feel sorry that the Bank has "stolen" gthe lient. Give the client the best rate to begin with, and give them reasons to be with you and you will get the majority of teh deals.

    Work at Staples or Costco or wherever at $12 to $17 an hour and realize you have to work one or two hundred hours to make the same you make on one four hour deal. Blows my mind when I read the compakints.

  • John Greenlee on 2016-04-25 8:55:54 AM

    I have read the comments above and I think Joseph has done the right thing by withholding the lenders name in question.

    It serves no purpose to slam them here when other brokers and himself do business with the banks on a daily basis. There are certainly diplomatic ways to resolve this type of issue.

    It is unfortunate that this has happened and it certainly has probably happened to everyone reading this. I know it has happened to me in the past.

    The fact is, there will always be competition and there will always be deals won and lost. Banks are our partners and without them we don't exist. Let's not forget that.

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