Brokers respond to claim their business is ‘dirty’

Brokers respond to claim their business is ‘dirty’

Brokers respond to claim their business is ‘dirty’ A bank road rep tell-all has brokers’ backs up after he suggested the channel’s deals are “dirtier” than those funded on the bank side. But at least one lender has come to the aid of his channel player partners.

“I run a private lending company that deals only through Brokers. Brokers are not dirty, but they definitely are not afraid to get down and dirty,” one commenter wrote on MortgageBrokerNews.ca. “No cookie cutter deals in my business. Brokers who structure private deals roll up their sleeves every day to find workable financing solutions for their clients. This is the kind of partnership I value.”

Several brokers responded to the claim that their deals are held in lower regard than those done by the banks, with many pointing to the pride they take in getting deals done for Alt-A business that some of the larger institutions won’t touch.

“The majority of my business is clean, bankable, business. They just prefer to work with someone that has the expertise to recommend more than one lender to them,” Jim Thornton of Real Mortgage Associations wrote on MBN. “Then, there are the clients that fall outside of the bankable-box because maybe they own four rental properties and the bank will only allow you to have three. How does doing that deal make you ‘a little dirty’?”

The comments were in response to a story entitled 8 secrets road reps told MBN, in which one anonymous high-funding CIBC rep suggested brokers lack the prestige enjoyed by bankers.

“Many road reps who go over to the broker channel often come back to the bank,” said the source, “and it’s not because they can’t make it without a big bank name behind them. No, it’s because the deals that come to them as brokers aren’t generally of the quality that we see in the bank, and doing the broker deals can make you feel a little dirty. The prestige isn’t there.”
10 Comments
  • Ottawa Broker 2015-04-01 11:43:33 AM
    The bank road reps that become brokers and then go back to the bank normally do so because they are not smart enough to place a deal that is not a cookie cutter deal. Plus they realize without their bank feeding them business they are not as good as the thought they were and they have to go back to the shelter of the bank so they can squeak out a modest income. It has been proven for over 20 years, if any bank employee is any good, they leave for the private sector as either a financial advisor or a mortgage broker. If they can't cut it in the private sector it is normally because they weren't as good as they thought they were.
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  • Tony 2015-04-01 11:48:14 AM
    That is a silly, uneducated and unprofessional comment from the bank rep. Sounds more like 'road' rage to me.
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  • Chris 2015-04-01 11:56:59 AM
    Bank road reps are unhappy with the low pay they receive per deal vs brokers. Although, many bank road rep have to clock the same mileage brokers do.. I believe this guys comments were just sour grapes.
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