Brokers: Banking double standard regarding wait times

Brokers: Banking double standard regarding wait times

Brokers: Banking double standard regarding wait times 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 MortgageBrokerNews.ca. “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 Mortgagebrokernews.ca.

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.
 
 
20 Comments
  • Toronto broker 2014-06-20 11:30:17 AM
    Lesson to be learned: Support your monoline lenders.
    Post a reply
  • MK 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.
    Post a reply
  • Better than the banks 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.
    Post a reply