Road reps borrow 'broker' name

Road reps borrow 'broker' name

Road reps borrow

“For ease of use” some road reps are  casually calling themselves “mortgage brokers who work for banks” to better "explain" their role to clients, one told MortgageBrokerNews.ca, arguing the practice is harmless.

“I don’t think it’s a big deal,” an Ottawa mortgage specialist recently quoted in a major Canadian newspaper told MortgageBrokerNews.ca. “What I do, to make it easier for the client to understand, is tell them that I’m a 'mortgage broker' who works for a bank. They don’t necessarily understand what a mortgage specialist or mortgage development manager is, so using ‘mortgage broker’ makes it easier for them to understand what it is I do.”

That September news article also refers to the mortgage specialist as a "broker."

The road rep, speaking on condition of anonymity, is among the growing number of specialists winning the kind of media attention all mortgage professionals covet as an increasingly complex housing market has reporters scrambling for expert commentary.  

But mortgage specialists are largely using the term “broker” to better describe themselves to potential clients rather than as a tool to win greater media coverage, said one  Monday.

The fact is some of their Realtor-referral partners are doing the same, using their websites to describe those road reps as “mortgage brokers.” Ostensibly, that is for the same ease-of-use reasons.

These latest examples come as CREA moves to downgrade its outlook for the Canadian real estate market, with the growth in home sales and prices slowing.

While new mortgage rules are largely responsible for the slowdown, they’ve also increased consumer need for mortgage advice, say industry veterans, worried unlicensed road reps borrowing the broker name unfairly position themselves to win some of that new business.
 

30 Comments
  • Max Cafissi 2012-09-18 4:25:58 AM
    Not only is the use of the term " Mortgage Broker " by the Bank Road Reps unethical, it is illegal and should be reported to both FSCO and OSFI. A Licensed Mortgage Broker or Agent must, by law, identify him/her self by quoting his individual Licence #, the Broker he/she is employed by and the Brokerage Licence# on ALL correspondence aimed at the general public. Furthermore, I find it reprehensible that the Bank's Head Offices are allowing this to happen. They should be notified that this is happening and should be fined by OSFI.
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  • @kiltedbroker 2012-09-18 4:32:58 AM
    As a broker channel, we need to continue creating our value proposition around the service we provide, access to multiple lenders among other things is how we should be marketing ourselves.

    These mortgage specialists or road warriors will be exposed for what they are - small time bank reps that work for the bank, get paid by the bank to make money for the bank with few actual options for their clients. I say let them call themselves "mortgage brokers who work for the bank" they just will just look stupid in the long run.
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  • BT 2012-09-18 4:43:28 AM
    Ottawa consumers must be so entrenched and aware of the role of mortgage brokers that it's a kind of compliment that the "mortgage brokers" term is used to define a role. On the flip side, I've seen many mortgage agents advertise themselves as a 'Mortgage Advisor', 'Mortgage Consultant', or 'Mortgage Professional'. The FSCO rule applies to these people as well. Rules are rules and we as licensed agents and brokers must follow them.
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