Lender panel plays it safe at CAAMP

Lender panel plays it safe at CAAMP

A panel of lenders at CAAMP's annual conference said they believe mortgage brokers' share of the market will continue to grow, but also emphasized the need for greater efficiency and speculated that volume bonuses could be scaled back over time.

"There is increasing penetration of the mortgage broker channel because it takes all the grief of getting a mortgage off a person's shoulders," said Stephen Smith of First National, adding the under 40 generation has created a culture of using mortgage brokers as opposed to their parents' generation who turn to banks.

Among the positive outlook there was also critique. Ivan Wahl of Xceed Mortgage Corporation talked about his company's goal to do 80 per cent of volume with 20 per cent of brokers and speculated there are only a small number of brokers who "do what they say they're going to do." John Webster of Scotia Mortgage Authority said he didn't think lenders needed to be "all things to all people" in response to one of Smith's comments about catering to all brokers, not just the ones who send in lots of deals.

On the topic of lender exclusivity, Boris Bozic of Merix Financial said it appeared lenders were after "the same 750 brokers across the country even though there are 14,000", stating brokers can have trouble gaining direct access to a lender. He also stated volume bonuses have a "shelf life expiry" and warned the industry to prepare for changes.

The panel agreed on a trend toward more screening of brokers (such as Scotia Mortgage Authority's mortgage scorecard) focusing on efficiency ratios, number of delinquencies and deal quality. And although the panel agreed the economic recovery is underway, their optimism was cautious.

"The last half of 2009 was much better than anyone expected," said Webster. "But there is still a lot of uncertainty."

 

 

13 Comments
  • Naraine C 2009-11-25 5:45:44 AM
    First off no one is taking the lenders to task as it seems that organisations such as CAAMP are more interested in lookng out for the lenders and protecting their GREED for wealth.

    What about brokers who are working hard at bringing the lenders business, expensing themselves to build relationships with potential clients. We spend money on Advertising, utilities, auto expenses, supplies, membership fees to organisations that do nothing for brokers and more...
    We have expsenses too.
    What about the millions of dollars in profits that the lenders make. Can they justify all the changes they are bringing. Its seems that they are on full assualt on brokers. They want us to bring them more clients, boosting their PROFITS but they want to give us pittance for the hours and hours of investment of time and money we put into helping them make more money.

    When are brokers going to stand up and demand that the lenders compensate better and also follow their own guidelines. LET THE CHANGE COME FROM THE BANKS NOW. How about fair business practices. Let the banks follow the same guidelines they gave us. Stop giving the customers the lame excuse that " the banks have more flexibility"

    ARE brokers aware that the banks are recruiting brokers agressively? it seems, they want to discredit and destroy the independant broker share of the market while they build thier alternative.

    its seems to me if you are ethical and work hard at bringing good and proper business to the banks they should
    respect that and compensate fairly for that.

    what "warnings" is Boriz Bozic talking about? Does he not see that the industry is going thru some changes and regulations are now in place to bring about accountability and change in Ontario.

    For all those brokers who "think" the banks have good intentions, think again, the banks want all the profits and will try to find cheap labour and squeeze you out of business and if they don't follow thier guidelines and are accountable to no one, we won't have any business in the near future as the disadvantage is obvious.
    This is my opinion, it would be interesting to hear someone else's.
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  • Steve G 2009-11-25 8:28:38 AM
    I agree with most of Naraine is saying... CAAMP is an organization of lenders for lenders... And the Lenders are creating a business model that will reward only the very top 5% of the brokers in the industry..
    Post a reply
  • Steve G 2009-11-25 8:29:16 AM
    ...oops, hit the submit button in error...
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