Brokers vent No. 1 frustration at CAAMP

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The broker panel at CAAMP always fosters unfettered and honest discussion and this year’s was no different, with several veterans calling on lenders to step up to the plate and push back against the regulators.
“I feel such an obligation to push back against the destruction of productivity in our business,” Croft Axsen of Jencor Mortgage said during CAAMP’s broker panel discussion Monday. “And yet it is so hard because the lenders are just accepting this role …It’s gone too far. At some point the lenders have to take back their jobs.”
Other members of the panel were just as candid in voicing real concerns about underwriting that sometimes appears to sacrifice commonsense for conformity to guidelines.
The panel also included Kerri Reed, a broker with Verico Premier Mortgage Centre; Mike Lloyd of Dominion Lending Centres Canadian Mortgage Experts; and Peter Mancini of The Mortgage Centre I Direct Mortgages.
When asked the root of most brokers’ frustration, one panelist took a lighthearted dig at lenders.
“Can we get all the lenders to leave the room?” said Reed, facetiously asked during the panel session.
Much of the discussion revolved around regulations and how they have impacted lenders and, of course, brokers.
According to Axsen, one thing the new federal government should take a step back and allow lenders to determine prudent lending practices.
“Regulators should let lenders be lenders,” Axsen said, noting that OSFI shouldn’t determine how lenders lend their money.
Axsen led the charge against the current regulatory environment in the discussion, but he wasn’t alone in airing frustrations.
“There is a lot of frustration. The clients are frustrated … the lenders are frustrated. There is some uncertainty … but I think what works best is when everyone works together,” Reed said. “The completion of a file today (takes) so much more than it used to … it’s a challenge.”
  • Rick Lunny on 2015-11-17 10:04:03 AM

    I was present during this panel discussion, and while empathetic to the broker frustrations, anyone who thinks we will return to the "good old days " is unrealistic. Our new world is an ever increasing regulatory market ( b-20 and more) and all of us, lenders and brokers and insurers, must learn to live with it. The key will be streamlining the process and communicating expectations. That is what we intend to do at Manulife Bank when we soon broaden our broker commitment.

  • Ron Butler on 2015-11-17 2:01:16 PM

    Mr. Lunny is correct, we will never walk back OSFI's underwriting changes. We all have to accept the new facts of life.

    That being said our lender partners have be up to the task of working hard to manage files quickly and rationally. There will be the occasional requirement to make an exception of very small down payment tracking, let's face it, the client could have a good night at the casino and deposit $2K in his account, would we need to get a letter from the pit boss? We have to have rational exceptions.

    We also have to know that once a file is supposedly complete that any additional quality assurance must be finished in 24 hours. We cannot tell a client they are all done and then call them back in 10 days and say there is something more required.

    Things in mortgage world are very stressful today and the time spent on files has enormously increased but we have to suck it up and move on. We can only press lenders for that which is within their power to fix.

  • Kerri Reed on 2015-11-18 9:56:54 AM

    Gentlemen I agree. As I mentioned on the panel, there is a great deal of frustration. Clients, agents, brokers and lenders included. We need to work together. If everyone does their part we can minimize the stress levels and move through each day with a little less aggravation. We cannot continue to deflect accountability. We are well aware of what is expected of us all.

  • Vejai etwaroo on 2015-11-19 12:40:50 PM

    I do agree with all of you here. My main concern is that when a file is supposedly complete. The quality assurance team should work on it right away and not wait until the closing date to do a quality check to find out something is missing. This happened to me with one of my client on the day of closing the lender request an appraisal. The deal couldn't close because that request was done on the closing day and the appraiser could not come out same day, that day being a Friday. Luckily, I found an appraiser who did the appraisal at 3 pm sent the report at 6pm. Deal close the following Monday. Who do you believe paid the extra cost. Not the Lender, Not the Lawyer. I did, along with the borrower. Because I tried to help out my client and not to lose them. I had to pay double the appraisal cost to have the urgent appraisal. The other costs were paid by Borrower who was not at any fault regarding this. Why didn't the lender inform me days before to get this done? They said that they apologise for this. is that a good answer? This file was broker complete as per Lender about 3 weeks before closing.

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