Brokers to Associations: Stop road rep 'broker' use

Brokers to Associations: Stop road rep 'broker' use

Mortgage professionals are putting their associations on notice, insisting they use their clout to stop road reps from calling themselves “brokers.”

“It is time for associations such as IMBA and CAAMP here in Ontario to oblige government bodies like FSCO to order banks to stop this practice immediately,” said Jerry Rose, broker of record for Verico - Allendale Mortgage Services in Barrie, Ont. “The practice of road reps calling themselves brokers is unfair to us who took the time to take training and pass exams to obtain that designation.”

The call for action comes on the heels of a MortgageBrokerNews.ca article detailing the casual and increasing use of “mortgage broker” by mortgage specialists looking to better explain their role to prospective clients.

At least one Ottawa road rep uses the designated title to to communicate to clients but also in addressing media queries. He was recently quoted in one of the country’s most influential newspapers as a mortgage broker for the country’s sixth largest bank.

That practice doesn’t sit well with brokers, who’ve sounded their frustration in a deluge of comments to that initial MortgageBrokerNews.ca article Monday.

“We can look at it as a compliment that road reps appropriate the title mortgage broker when dealing with clients,” said Rose, “but the truth is they haven’t earned that designation and that is unfair to those that worked hard for it.”

Others want their broker networks in tandem with industry associations to take the concern directly to the banks and the regulators to stop any misappropriation of the term “mortgage broker.”

“In view of the confusion, all national brokers should now inform bank CEOs, through our associations, that bank employees MUST call themselves exactly what they are; namely, ‘bank mortgage loan officers,’” writes one MortgageBrokerNews.ca reader.


 

20 Comments
  • Winona Reinsma 2012-09-19 4:50:56 AM
    It's not just about the "training and passing the exam" that creates the difference. There simply is no comparison between what the 'mortgage specialists' or 'bank mortgage officers' do and 'mortgage brokers.' They have completely different intentions, objectivity, and customer service capabilities. Bank Road Rep's saying they are Brokers is just another example of the smoke-screens in our industry where misinformation is used to mislead the consumer into thinking they are getting something they are not.
    Post a reply
  • woodd7 2012-09-19 5:13:56 AM
    It would appear to me that this is truley a tempest in a teacup. I am a mortgage specialist with a "big bank" and have all the credentials to be a mortgage broker. I am not as I chose the brand and the full service Banking route. I have not and as far as I am aware none of my peers in this organization referred to ourselves as brokers. If one of the reps for the countrie's sixth largest Banks does, it is his mistake and not a stake to the heart of brokers. It would be a pity to expend a whole lot of effort here when we have legislators creating much more harm.
    Post a reply
  • Deepak Bansal 2012-09-19 5:19:44 AM
    A bigger issue here is the fact that Bank Road Reps (or known as 'Mobile Mortgage Specialists' or 'Mortgage Development Managers' by the Banks), by misusing the title "Broker" are in fact MISLEADING clients. It is unethical to mislead the general public and this fact alone should get the CEOs of the Big Banks to ensure their employees are working in an ethical manner and not misleading clients. For the general public, it is important for them to know the clear difference between a Bank Road Rep and a Broker, where a Broker is NOT biased towards one lender, and a Bank Road Rep is a direct employee of one sole lender who can provide financing options of only ONE lender. Not to say that one is better than the other, but clients should clearly know the difference between the two and be allowed to form their own opinion of which they favor. Using a title that is not earned is completely unethical. With full transparency, its difficult for clients not to see the difference. We can sit here and wait a LONG time before FSCO actually takes any action -- rather it is up to each and every broker to ensure that in each and EVERY interaction with a client they take the time to EDUCATE clients on the clear difference between a Mortgage Broker/Agent vs Bank/Bank Road Rep/Mobile Mortgage Specialist.
    Post a reply