Brokers: Banking double standard regarding wait times

by |
Brokers are frustrated by increasingly lengthy processing times when dealing with the banks – especially when those same banks expeditiously approve broker clients in-branch.

“I just sent a (bank) a letter because I submitted a deal on June 4 and I didn’t hear back from them until the ninth and the client had gone into the branch on the sixth and received an approval within 24 hours,” Rishi Sharma of Centum Smart Mortgages Inc. told “I’m not sure why it happens – perhaps the banks are back-logged with brokers and the deals seem to be expedited in the branch; they may use a different system or know shortcuts,”

Sharma’s submission – which was sent in before the client visited the branch – was declined because the bank already had an open file on the client.

“That client is gone and practices like this undermine the relationship banks have with brokers,” Sharma said.

It’s a prevailing problem mentioned by a number of brokers, who are irritated enough to send fewer deals to the big banks in favour of the monolines.

“I work with major banks and they challenge I find is that some clients I bring to them are denied a mortgage only to be approved when they go into a branch themselves,” Avijit Ghatak of Centum Home Loan Inc. told

Still, it’s an issue that is only compounded by -- what brokers perceive to be – tighter stricter underwriting in the monoline channel.

“Underwriting on the broker side is much tighter,” Ghatak said “Our clients may get denied by the lenders but they get approved by the banks.”
Have you had a similar experience? Mention it in the comments section below.
  • Toronto broker on 2014-06-20 11:30:17 AM

    Lesson to be learned: Support your monoline lenders.

  • MK on 2014-06-20 11:31:03 AM

    A deal I submitted on May 26th to a big bank for a current client on a port and increase was only approved on June 17th. Two underwriters later, a mess-up with cmhc, and a complete lack of regard for the client. Deal expected to close on Monday 23rd June, it will be a miracle if it does.

    I support monolines 90% of the time and when I can't, it's like pulling teeth with the big banks.

  • Better than the banks on 2014-06-20 11:42:23 AM

    Stop sending your business to the banks! Not only are they not providing you with the service you deserve, you are doing a disservice to your client by placing them into a poorer product than what is offered by non-bank lenders... and the bank will take every measure possible to make sure your clients never return to you.

  • DEL on 2014-06-20 11:48:39 AM

    For those of you who are unaware, salaried branch employees typically have their own lending limits. If the mortage application is within those limits and there are no unusual exceptions then the client could possibly leave within the hour appointment with an approval. Commissioned Brokers, including the Mortgage Rep's who work for Bank's have to submit the applications to the central credit department...therefore their application gets in line behind the many others. In this peak season this can sometimes take many days especially if a full appraisal is required or more information (or co-signer) is required. It is our job to educate the realtors who seem to keep shortening the financing condition time that they have to give minimum 5-10 business days during peak season. The appraisers are really busy too and that can delay a file.

  • Victor Simone on 2014-06-20 12:19:38 PM

    In a corner of a dark room, in the early morning hours, a drunken banking executive will tell you that if they could eliminate the broker unit, they would. Either you need to start working for a bank, or start dealing with lenders that need you. The World Cup wasn't even on last month so there are no excuses for long delays prior to or after June 2014. hehehe

  • EX-BANKER on 2014-06-20 1:54:03 PM

    This is the norm today with Big Banks. They don't care about their brokers. All of the issues mentioned above - I've had at a one of the big ones (name withheld). They have even gone as far as to allow the branch(under cut my broker rate) to do a deal. I already had approved at broker side. Too bad was the response. Where it used to be, if you already had the deal on broker system. The branch could not take in the same deal. That's gone (no respect at all). So, rather than complain. I've learned to use my knowledge of them against them... when I need a deal done. At the same time, you can't say ... just use MONOLINE LENDERS (which I fully support and go to first .... but sometimes you need the bank - so can't completely burn your bridge. I've learned to use my knowledge of them against them... when I need a deal done. A little more homework on your part before you submit .. way all the pros/cons before you choose that lender!

  • Barb a Centum Mortgage Store on 2014-06-20 3:11:07 PM

    I am a 35 year retired Bank Manager. The mortgage product is not a product that banks make any money on. They try and match broker rates, and the branch pays the big office to advance a reduced mortgage. Therefore the spread is nothing. They should leave the mortgage to the broker to put through the brokerage house and once the mortgage is booked then solicit the client with all the other products they offer like lines of credit, rrsp, chequing accounts which makes the branch far more in profit for their shareholders. Spend the time where it makes you money.

  • EX-BANKER on 2014-06-20 3:18:59 PM

    I agree (21yr + ex banker) with 35 banker.
    I have a good bank branch relationship. And i tell them, you take care of me, I'll put my mtge. deals @ your branch. I even prep the client for other products the bank can sell them :)

  • Poor Mortgage Guy on 2014-06-22 1:35:34 PM

    This is not a new thing.

    5 years ago, I sent a deal to Sxxxxx, numerous document and questions, the loan is 1.25 millions, they asked why there were some 2,000 bank in and what were them about !

    During the branch fulfillment, the branch people did not know I am the broker (I went with my client) and asked the client why she did not go direct to branch rather than through a broker !! They said they could give her better deal !

  • Poor Mortgage Guy on 2014-06-22 1:38:26 PM

    For the past couple years, I lost mannnnny deal to the retail bank.

    It seems that the branch staff don't care about GDS/TDS.

    Branch can do anything within their limit. Those guidelines only suitable for our brokers, not the branch, always exceptions there....

  • John Van Driel on 2014-06-23 10:25:24 AM

    Where are our Industry Associations? Why are they not attempting to level the playing fields?? The Banks are not only using unethical practices, but many border on the unlawful!!!

  • A Broker on 2014-06-23 11:38:34 AM

    Unfortunately your bank rep will never back you on a deal. I have had clients take a completed file to the branch for signing and suddenly the branch owns the file and I lose out with absolutely no backup from my rep. Thank T* Bank.

  • Poor Mortgage Guy on 2014-06-23 2:53:27 PM

    Branch has their target, do whatever they can do in order to hit it.

    Ofcoz it includes "one eye on one eye shut".......

    One of their reasons is they "know" the client.

    For our broker, broker channel does not know us, does not know the client..... la la la, bla bla bla.....

  • Poor Mortgage Guy on 2014-06-23 2:54:38 PM

    refer your clients to retail bank, you will get some AIRMILE ...

  • Terri Pandee on 2014-06-23 3:20:39 PM

    The only bank that is taking forever is TD bank, i am getting approvals sometimes sameday from RBC, BNS & BMO. TD submits are minimum 5 business days before you get a response.

  • Jake Abramowic on 2014-06-23 3:22:07 PM

    Interesting - you work with RBC? They're not "allowed" to work with brokers. Does your RBC rep know this? Do you charge fees when going thru RBC? Also BMO?

  • EX-BANKER on 2014-06-23 3:30:38 PM

    Good ? Jake, I was wondering the same thing: RBC & BMO (allowing independent brokers)...REALLY?? I don't see this passing via BROKER SERVICES. Must be a direct to BRANCH. I do this as well from time to time. But I cultivated the relationship @ Banks - Branch level for these one off's. Yes, I have to charge my own fee/broker agreement.

  • Marie on 2014-06-24 8:00:44 AM

    Interesting? i cant speak for BMO as i am not familiar with them but I am with RBC and they will not allow any dealings with mortgage agents or brokers, its taboo. Also why would a customer pay a broker to put their mortgage with RBC when they can go to the branch or MS themselves and get the same rate. They have been very aggressive and transparent with their rates for quite some time. i offer clients many monoline choices and bank choices where that bank offers broker services. They choose their lender after I lay out the pros and cons of each including wait times for approval.

  • Silly Rabbit on 2014-06-24 8:36:56 AM

    TD bank and its wait times just proves that management don't care one bit about it's employees, brokers or clients. It's all about the profit.

  • Silly Rabbit on 2014-06-24 8:38:14 AM

    TD banks' ridiculous wait times prove that management don't care one bit about it's employees, brokers or clients. It's all about the profit. Unlike what the 2 old guys will tell you in their commercials, lol.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions