DLC’s Gary Mauris takes the hot seat Wednesday for an animated discussion on buying down rate and other challenges facing the broker channel -- joining industry trainer Greg Williamson for the last of two webinars now attracting hundreds of mortgage professionals.
“I love this spirited conversation,” said Williamson, on the heels of last week’s candid discussion, largely focused on steering brokers away from buying down rate. “It is simply not true that all customers want is lowest rate, just like it is not true that all people buy cars on lowest price.”
His first webinar -- “180 DEGREES SOLUTIONS -- Threats To The Broker Channel and What Can We Do About It” – drew more than 600 brokers and agents last week, with Paul Grewal offering his take on the need to buy down rate, something an increasing number of mortgage professionals reached for in January in order to compete with BMO’s record-setting 2.99 per cent five-year fixed.
Calgary broker Greg Williamson has led the industry charge against that practice, arguing its use threatens industry self-preservation. He’ll offer the same analysis when the free webinar goes live Wednesday at 1 p.m. EST.
“Ultimately, following a system of buying down in order to attract and retain clients leads the industry down the path of travel agents,” he told MortgageBrokerNews.ca. “That’s not in their best interest – it’s like telling lenders that we as brokers are prepared to get paid less.”
Still, there are a growing number brokers now turning to lead generation sites to hawk their wares, most relying on buy-downs to do it.
“The fact is that our products and services have been commoditized – that’s a reality,” said Jim Tourloukis, owner of Advent Mortgage Services in Unionville, Ont., and Ontario’s No. 1 broker on last year’s CMP Top 50. “We talk about value propositions and customer service, but at the end of the day everyone expects good customer service, so if you want to keep your deals, you’re going to have to also offer the lowest rates and that means buying down.”