REDX addresses AMP questions

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The company behind REDX is now answering a question CAAMP has been slow to, asserting the association does not directly file incident reports on brokers who drop the AMP designation.

"Public information collected ... can include, but is not limited to information about disciplinary, enforcement and certain legal actions taken by regulatory bodies and self-regulatory organizations that oversee professionals in the mortgage ... industry," Paul McGowan, a national marketing manager with Teranet, the company responsible for REDX, told MortgageBrokerNews.ca Friday, "CAAMP endorses REDX, but is not a reporting member of REDX.

"CAAMP does not file specific incident reports regarding its members."

The comments directly answer the concerns of brokers alarmed by REDX reports highlighting their decision to let an AMP designation lapse.  Those reports -- whether intended to or not -- get viewed as black marks against a mortgage professional by some lenders. Generally, those broker partners use the system to vet mortgage professionals for fraudulent behaviour.

But a broker's decision to hold or drop the AMP designation should not result in any report at all, charge brokers responding to a MortgageBrokerNews.ca story Thursday.

The article details the concerns of RMAI network head Ron De Silva and several incident reports attached to his own name after he declined to renew his AMP certification.

“I really think most brokers are simply unaware that this can and does happen,” De Silva told MortgageBrokerNews.ca Wednesday. "It doesn’t seem to fit with the whole purpose of REDX, which as stated on the website, is to 'Prevent Fraud, Manage Risk, Protect your interests.'”

CAAMP answered those concerns Thursday by calling AMP licensing records public information, without specifically addressing whether it files incident reports.

For De Silva's part, he is worried any marks against him could put off lenders and underwriters who fail to study the exact nature of the reports but use their mere existence to disqualify a broker.

“What’s even more of a concern for me,” he said, “is the many other brokers who may have had the same thing happen to them just because they made the decision not to renew their AMP designation and that they don’t even know a report was generated. All brokers should request a free copy of their own Redx report by completing and submitting the online form at www.Redx.ca.”

De Silva is just the latest mortgage professional to sound the alarm over what many argue is the growing abuse of the REDX system, which relies on lenders and, indeed, information made public by CAAMP to generate incident reports as red flags to other REDX members. Brokers are also concerned that under REDX rules only the member who posted the report can remove it."

REDX subscribers are, in fact, encouraged to distinguish between various forms of reporting on the database, suggests McGowan.

"Licensing information collected by Teranet can include the addition or expiration of any accredited professional license," he writes. "License reports created in REDX are not reports of (mortgage file) misrepresentation.

"Subscribers to the REDX Service are always advised to consult the source for the most up to date and current information."



 

  • Jean-Francois Trahan on 2013-05-03 10:18:30 AM

    Just requests my reports and I just can't wait to see what on there. Cause I did let my AMP laps and even cancel my AMP last year

  • Mark on 2013-05-03 10:49:44 AM

    I think we have been missing something here. This is about the AMP, which IS NOT REQUIRED to keep your mortgage broker or agent license in Ontario. This is an elective option put out there by CAMMP, and thus they are overstepping their boundries by suggesting this is a reportable infraction under the description provided from RedX.

    On another note, if CAAMP is an endorser of RedX and doesn't report to it, then who the hell is reporting the choice of the individual to not renew their AMP designation to RedX? Hey CAAMP, why don't you come clean and admit that you are playing a shell game and now are messing with people's careers and lives.

  • Ron De Silva - RMA on 2013-05-03 11:49:57 AM

    I applaud Mr. McGowan for stepping forward and attempting to address some of the concerns that I have raised about Redx. His answer however, still doesn’t address why an organization that has a mandate to 'Prevent Fraud, Manage Risk, Protect Your Interests” needs to warehouse data regarding the AMP status of mortgage professionals? Furthermore, what unique Fraud prevention/Risk management abilities does the status of a broker’s designation bring to assist Redx subscribers to manage their interests? Notwithstanding it’s public information, I’m curious as to how Redx even gets this data compiled?

    Since yesterday’s article and the hullabaloo that it caused, I have been inundated with calls and emails from brokers about this issue. The common theme in all of the messaging I received has been, the lack of transparency in how this process works and the lack of caring for the affected parties. This issue was raised previously in October of 2011 in this very forum. (Search: Lender questions value of redx) In that article a broker was turned down from dealing with a lender because of two Redx “hits”. Upon further investigation it was discovered that it was related to “hits” about his AMP designation. To this date, no one has come to his aid, no one has righted this wrong and he still isn’t doing business with this lender. Sadly, no one that should care, cares….

  • John Dearin on 2013-05-03 11:56:42 AM

    Well I requested and received mine yesterday afternoon. Seems I am a good doobee for now. Even saying that may be breaking the confidentiality agreement I had to sign.

    At the same time myself and my partner are questioning the value of AMP and CAAMP, but this is still better than nothing. Where are the regional associations, I thought they were going to try to put something together that would have some credibility and be recognized?

  • James on 2013-05-03 12:34:34 PM

    I also let my AMP lapse last year as the lenders themselves don't even appear to support it as much when it was first introduced. Lenders, Insurers all used to offer good programs to assist us in our business and earn credits for the AMP. To keep the designation you pretty much have to attend the CAAMP yearly conference to get the credits and I have not seen much of interest at the last few that would have me spend 3 days of my time and 1500 dollars of my hard earned cash. If this is causing red flags and brokers to be black listed, someone needs to be held accountable.

  • Roman on 2013-05-05 12:12:28 PM

    It seems to me that those brokers and agents that refused to obtain an AMP designation are better of for it. They don't have to keep renewing the designation in fear of a report. My biggest issue with the AMP designation though has to be the fact that regular bankers are able to obtain it as well. I smell cash grab....

  • Sam Magoo on 2013-05-06 8:20:56 AM

    Teranet is owned by Borealis Capital, an investment arm of the Onatrio Municipal Employees Retirement System (OMERS)...send e-mails to their executives & Board members commenting on this "Star Chamber" -like

  • Elfie Hayes on 2013-05-06 12:18:19 PM

    From all the comments I've seen on the subject it would appear that CAAMP is not responding because they are the ones reporting to Redx.

    Our own association is working against the people it is supposed to help. What's going on here? Jim Murphy why do you refuse to reply to any of these comments?

  • Paul Mangion on 2013-05-03 9:33:48 AM

    CAAMP actually did approach Terranet about this product and there are certain lenders that greatly abuse this system and even after proving that they are mistaken still refuse to remove the info. Maybe someone needs to take legal action against REDX and the reporting lenders. I encourage everyone to request there report. You will be surprised at what you might find.

  • John Hamilton on 2013-05-03 10:13:42 AM

    Today I replied to a CAAMP email asking me to renew. Timing is everything. Here is copy/paste of my email reply to them;

    "Niro,

    For some time now I have been debating whether to renew my AMP designation or not. After reading all the news about Redix, my answer is simply no f------ way. And after 25 years plus as a broker, I will do my best to tell others to do the same thing.

    John Hamilton"

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