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.”