Should bank road reps come under industry regulation?
This is the question some brokers are asking as the heated debate on road reps appropriating the mortgage broker title continues to a simmer.
“I think this is the perfect time to look into having road reps licensed and regulated,” said Brian Lambert, broker with Real Mortgage Associates in Barrie, Ont. “Regardless of what name they end up using, this will help ensure that a governing body is overseeing their conduct and the service they provide.”
Like many mortgage professionals, Lambert argues that brokers go through strict education, training and licensing procedures before being allowed to practice. He believes banks should move to have their road reps and mortgage specialists undergo the same rigours to protect clients.
That would ensure the education that road reps get is standardized, he said, “and that the public is assured a governing body is keeping tabs on integrity and quality of service.
Banks encountered a similar quandary with bank employees representing themselves as financial advisers and giving clients investment advice even when they did not have any license or accreditation, recalled Lambert, a former insurance and investment adviser.
“Because of numerous problems and complaints from the public, the banks eventually required these advisers to be accredited,” said Lambert. “I am hoping we will see the day when bank employees giving mortgage advice are fully licensed just like brokers.”