Brokers call for stricter education requirements

Brokers call for stricter education requirements

Brokers call for stricter education requirements

Brokers, who have dealt with the fallout created by inexperienced peers, are calling for stricter education requirements for incoming mortgage professionals, even as Ontario reviews its regulations.

“Untrained individuals are concerning,” David O’Gorman, president and principal broker at MortgageLand told MortgageBrokerNews.ca.  “The five day wonders, I call them, who do a course and think they know everything. I’ve had to clean up (some of their) dirt in the past; deals that have been messed up.”

O’Gorman points to a recent incident where an appraisal was botched, overvaluing a house and requiring a re-appraisal. The problem, according to some brokers, is the lack of formal education required to become a mortgage broker.

“They need to implement mandatory, continuous education at a high level,” O’Gorman said. “A six- to eight-week mortgage education that includes appraisals, underwriting, understanding building titles, understanding reports; it needs to be more formalized.”

It’s an opinion shared by many experienced brokers – players who have put in the time, climbing the ranks in an industry that now, more than ever, attracts newcomers looking to cash in.

“I’m concerned by the quality of brokers in general,” Robert Floris of Mortgage Architects told MortgageBrokerNews.ca. “The ultimate goal should be to help clients but some view it as a way to make a quick buck.”

Floris has found himself fixing the work of inexperienced brokers as well. He’s had to do it six times this year alone, as a matter of fact. Recently, he was able to save a new client money by advising him to carry over a CMHC port – something the client’s original agent failed to mention.

“He was downsizing and he could take (his mortgage) with him and all he had to do was port his mortgage (to avoid paying CMHC penalties),” he said.

22 Comments
  • Versico 2013-09-27 7:19:33 AM
    It is very interesting to see those same established brokers who complained about the more extensive education prior to June 2008 now noticing that 5 days does not make for a competent professional.
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  • John G. 2013-09-27 7:26:28 AM
    Is it the education or the industry? Who is hiring someone who doesn't know this stuff? The course they take doesn't get them licensed, these brokerages get them licensed. While I agree the licensing course should be longer, brokerages should interview these new agents. But it's like it's always been in this industry: have a pulse then you get a job.
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  • JERRY ROSE 2013-09-27 7:40:01 AM
    IT IS MY BELIEF THAT ALL PROSPECTIVE AGENTS SHOULD BE REQUIRED TO HAVE A MINIMUM APPRENTICESHIP UNDER A LICENSED BROKER BEFOR THEY RECEIVE THEIR AGENTS LICENSE AND THIS APP. COULD BE SERVE AFTER THEY TAKE THE AGENTS COURSE.ALL BROKERS SHOULD BE REQUIRED TO HAVE A MINIMUM OF THREE YEARS IN THE INDUSTRY.
    IT MAKES NO SENSE TO IMPLEMENT ANY ADDITIONAL REQUIREMENTS FOR LICENSING AS LONG AS BANK EMPLOYEE'S DO NOT REQUIRE AN AGENTS LICENSE TO DEAL IN MORTGAGES OUTSIDE THEIR OWN INSTITUTION.
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