Brokers identify growing concern

by |
While the latest CMP Brokers on Lenders survey points to a two-point slip in satisfaction with the turnaround times of all channel lenders, a September poll from MortgageBrokerNews.ca is reiterating just how important that factor is in satisfying clients and closing deals.
 
Some 32 per cent of mortgage professionals responding to the online research question identified turnaround times as the “single-most important lender feature.” Underwriting support and interest rates came a distant second and third, capturing 25 per cent and 10 per cent of the vote, respectively.
 
“That reflects the challenges that monolines, in particular, will face in this market now and in the year to come,” Bernie Kramer, a Windsor-based broker, told MortgageBrokerNews.ca. “It is crucial that our monolines streamline their underwriting process to be able to give us commitment letters much faster in order to allow brokers to better compete with the banks.”
 
That may be easier said than done given the 2014Brokers on Lender results and the modest year-over-year drop in satisfaction with turnaround times. It’s worth noting that several lenders actually improved their individual year-over-year performances in the category, which is one of 12 brokers use to “rank, rate and roust” their lender partners with the annual survey.
 
But any ground lost by broker lenders as a whole likely reflects the continuing challenge of adhering to tougher underwriting guidelines introduced in 2012 for federally regulated players.

Brokers say they continue to grapple with balancing lender and client expectations
  • maurice on 2014-10-16 2:42:05 PM

    Open question to all readers.

    Who in your opinion has been your best and worst lender in regards to turnaround times??

  • Angela on 2014-10-16 2:48:15 PM

    Maurice, My opinion is that Scotia has the fastest turn around time for commitment and doc review, being just a few hours from initial submission. And TD for the worst being 5+ business days for a commitment plus another 2+ days for document review after.

  • banker on 2014-10-16 2:49:37 PM

    if brokers would actually put notes in their apps that make sense, and stop sending deals to three or four lenders at the same time, it would likely improve service levels,,,

  • Kuldip S Panesar Homeland Mortgage Corp. on 2014-10-16 3:01:45 PM

    Broker's notes in the application improve the turn around time . Originators after processing the app. should stick to the one Lender.

  • former banker on 2014-10-16 3:02:40 PM

    MCAP is the best lender for turnaround time. They are extremely quick!

    Worst in my opinion is Scotia and TD. They are ridiculous with their turnaround times.

  • mat on 2014-10-16 3:04:39 PM

    thanks for the tip banker! I wish there were more helpful bankers like you!
    I will test out that theory on my next deal.

  • Deborah on 2014-10-16 3:11:44 PM

    Banker, experienced brokers do put notes, and lots of them, and don't send to 3 or 4 lenders. We know how to put deals together and know which lender we will send it to before we hit the send button, which is all a CSR at a bank has to do. Get the info and send it off, one shot, if it doesn't work, oh well....next!!
    Remember we are paid on CLOSED deals, not how many applications we send in.

  • Ranjit on 2014-10-16 4:09:06 PM

    Radius having a great service. I sent them a deal today and got an approval in 40 Minute.

  • broker82 on 2014-10-16 11:13:54 PM

    This survey is flawed. Brokers will lose more deals to rate than to slow turnaround times and weak underwriting support. As long as a lender has 48 hour turnarounds and its underwriters answer their emails, the main thing that matters is the rate.

  • Arbitrage on 2014-10-17 9:02:30 AM

    Got an approval yesterday from CMLS in less than an hour. Never waited more than 4 hours with this lender. First National is also quick. I always find Street Capital to be slow.

  • Lynn on 2014-10-17 10:01:22 AM

    I find TD to be the absolute worst of all...I have been waiting to have them review the documents I sent to them for a week now and have emailed them to find out when I will here if all is good or if they need anything else. I haven't had a response to my emails NOTHING. So so frustrating........

  • Lynn on 2014-10-17 10:03:14 AM

    I find TD to be the absolute worst of all...I have been waiting to have them review the documents I sent to them for a week now and have emailed them to find out when I will here if all is good or if they need anything else. I haven't had a response to my emails NOTHING. So so frustrating........
    MCAP is quick!!!

  • Ron Butler on 2014-10-17 11:59:22 AM

    I think TD problems will be fixed very soon when First National takes over the underwriting and fulfillment of their broker mortgages.

  • Paul Hudson on 2014-10-18 1:25:11 PM

    First National the best. TD the worst. BNS is great if you are fortunate enough to have a designated underwriter. Agreed Ron Butler, I feel optimistic about the First Nat/TD marriage. I also agree that service is way more important than rate when there's 10 bps or less to play with. Most clients I work with value their time and will pay a premium for peace of mind and a quality product/service.

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