A credit union in B.C. is now fielding broker concerns about the “full-commission” renewals of a discontinued program – an offer that was nonetheless in play at the time of funding.
“I can confirm that Northern Savings paid renewal fees up to December 31, 2010, at which time this practice was discontinued,” Ken Doleman, president of Northern Savings Credit Union, told MortgageBrokerNews.ca. “The renewal fee program has undergone several iterations with varying terms and conditions (and) this may have created some uncertainty.
"A provision is now in place to automatically pay renewal fees to brokers who have attained Tier 1 status – determined by business volumes.”
That remedy hasn’t necessarily satisfied brokers who sent deals before the initial program’s end in 2010 and are without status, past or present.
“Northern Savings Credit Union PAYS FULL COMMISSIONS ON ALL RENEWALS FOR LIFE OF MORTGAGE,” reads a July 8, 2009, rate sheet obtained by MortgageBrokerNews.ca.
A Vancouver broker who sent several deals to the CU before the program expired says he received at least one renewal under the plan and was surprised to hear about the cancellation. With another client’s mortgage approaching renewal, he reached out to a BDM at Northern Savings for clarification.
“I was told that I wouldn’t be getting renewal fees on that deal even though it closed when the program was still in effect,” the brokerage head, a big supporter of lenders with trailer fees, told MortgageBrokerNews.ca, speaking on condition of anonymity. “Though I understand why they wanted to discontinue the payments, I believe they are still obligated to pay renewals on deals submitted under the program.”
Doleman, who took the helm of the CU after the renewal program ended, says he’s personally prepared to deal with any broker “who feels he or she has not been properly treated by our credit union with respect to this fee issue – and could provide additional information.”
“I will personally have this matter adjudicated,” he told MortgageBrokerNews.ca. “Integrity and equitable treatment are fundamental values that guide Northern Savings’ business dealings.”