Flippant brokers mar the industry

Flippant brokers mar the industry

Flippant brokers mar the industry

Are sleazy brokers cheapening the industry?

Brokers say inexperienced agents – including those who sat dormant until real estate sales picked up this summer -- are flooding the market to make a quick buck.

“Quality of agents in the industry and the quality of mortgage brokerage operators (is my biggest concern right now),” Paul Mangion, principal broker and partner at the Mortgage Centre M.O.S. MortgageOne Solutions Ltd., told MortgageBrokerNews.ca.  “We look more like used car salesmen today than ten years ago. People join because they think it’s easy and quick money; they don’t treat it as a career.”

These fly-by-night brokers can have a detrimental impact on the reputation of their more scrupulous and experienced peers – and it’s a lot easier to damage a reputation than to maintain one.

“They last long enough to do damage and then they move one,” Mangion said. “When (brokers) do a good job, customers tell one person, if you do a bad job, they tell 10.”

Some industry leaders have inherited clients from these brokers… and the headaches that come with them as well.

“When these clients come to me, it complicates matters and they are flagged by CMHC because their prior documentation wasn’t properly taken,” Jeff Mayer told MBN. “I’ll give an example: We got a red flag (which requires all documentation up front) and that was only because another broker gave them the wrong phone number. Why would you flag something just for having the wrong phone number?”

And this lack of thoroughness may be due to an lack of caring and ignorance.

“There are too many guys out there with no clue on what’s going on in the market; they’re blasting all these deals and they’re getting the information wrong,” Mayer said. “Most new agents don’t give full information or documentation. All they care about what they make and where they work.”

As for a solution, perhaps it can only come from a regulatory standpoint.

“There should be minimum requirements to hold their licensees and you should be active to hold it,” Mangion believes.

25 Comments
  • Garry 2013-09-13 8:46:35 AM
    I agree with the article's comments. In addition there are too many agents and brokers in the industry who have personal poor credit or financial issues which in my opinion lessens their own abilities to make concientious decisions for the benefit of their clients
    Post a reply
  • Ron Price 2013-09-13 9:03:36 AM
    Toughen up our educational requirements.
    Include much more course content on the business side including marketing, selling etc.
    Why not emulate the real estate model which puts the new agent on a probationary/apprentice period of two years during which time 3 additional courses much be taken, passed etc.
    Post a reply
  • Mark 2013-09-13 9:31:01 AM
    Agreed! As well, a minimum funding requirement should also be part of the probationary evaluation. If an agent cant fund 3M at least annually for two years, then it would be obvious that they are not in for the right reasons.
    Post a reply