“Correct me if I am wrong but part of the problem is no standardization. We should … be moving in the same direction with some of our policies and standards; [there is] no reason why we can't have a standard agreement for all clients to sign regardless of company,” Omer Quenneville, a broker with Centum Regal Financial, wrote in the MortgageBrokerNews.ca forum. “Then it will be up to service to separate us from one another and the banks and I think we can do a much better job than the banks any day.”
Quenneville’s comment was in response to a recent ruling in favour of mortgage broker Graeme Moss, in a case in which his client refused to pay the agreed-upon $2,911 broker fee for a private mortgage.
Broker fees are common when dealing with private mortgages, which often require a great deal of effort on the broker’s part.
Moss won the case and was awarded the original broker fee as well as legal fees. He credits the contract put together by his legal team with helping him enforce the fee.
And while brokers are applauding Moss’ victory, many argue he should not have had to go to such lengths.
“We need to demand the protection that is readily provided to other similar industries. I am satisfied that Mr. Moss won his case, although … it is unfortunate that he had to go to those lengths; as a singular Broker he is in the right,” Julie Stamp, a broker with Dominion Lending Centres
Altra, wrote in the forum. “However, as it is not an industry standard, it could negatively impact his business.”
Following one broker’s legal victory over a flighty client, industry players are calling for standardized file agreements