Paralegal says people use brokers to shop around "far too often"

Paralegal says people use brokers to shop around "far too often"

Mortgage brokers who prepare a deal with a lender only to find out their clients have used the rate information to shop around is something that happens "far too often" said paralegal Jeff Greenberg, who recently launched a business to help Ontario brokers collect commissions from clients.

"After a client has signed a mortgage commitment and all the documentation, the broker has done their job and therefore they've rendered a service and are entitled to get paid for that service," said Greenberg, who did legal work for an Ontario mortgage brokerage for three years before branching out on his own to start Greenberg Paralegal.

Greenberg first tries to settle these types of situations amicably by asking clients to pay the commission the broker would have collected had the deal closed (this amount excludes volume bonuses and other incentives). If that doesn't work, he issues a claim and takes the clients to small claims court - something he said happens in about 60 per cent of the cases he sees.

"Brokers don't want to sue their clients and it's not good business, but the fact is that it's not good business for a client to negotiate in bad faith and to take advantage of someone who relies on their commissions to live," he said, adding lenders are not part of the process of collecting payment from clients.

 

35 Comments
  • Ray B 2009-10-30 3:53:07 AM
    Get real is this a joke? How can this be a legitimate business? Obviously the brokers using this service don't care about any of their clients or the possible referrals that might come from them or their image in the community. Last time I looked as brokers we needed referrals to make a living. Taking a client to small claims court because they don't proceed with us because they got a better rate some place else is ludicrous and wrong. Having this company ask for it as well is also wrong. If the deal does not go through because the client has decided to not proceed with you then move on to the next one because it's life and that's how things work. I can't see how the courts can let this go on. Makes no sense to me and Jeff Greenberg should be ashamed of himself for calling this a business.
    Post a reply
  • Lianne 2009-10-30 3:53:18 AM
    I think this practice is wrong - if you want to drive clients and people seeking brokers in general away as fast as possible then this might be the route you go.
    Post a reply
  • Lianne 2009-10-30 3:54:36 AM
    You need to think outside the box in order to attract clients who will find comfort and connect with you to develop that "trust" When a client feels as tho they can trust you and they feel a rapport there, then you've got a client plus many referrals for life. If you play your cards right.
    Post a reply