Survey exposes gap in lender service areas

Survey exposes gap in lender service areas

A broker ranking of lenders is likely to break down along regional lines, suggest mortgage professionals anticipating the results of this year`s CMP survey and pointing to a funding gap between big and small markets.

“Regional differences will likely show in the ranking because lenders tend to treat brokers from various regions differently,” Sharie Marie Francoeur, sub-broker with TMG The Mortgage Group, told   

The 2012 CMP Brokers on Lenders survey is currently underway.

“I think big lenders don’t realize we even exist,” according to Francoeur, serving Port Alberni, B.C., and its population of 17, 750. “They pester us with broadcast advertisements, but when we call them and they learn where we’re located they say: ‘Oh I don’t think we lend in Port Alberni.’”

The comments echo those of other brokers from smaller communities and often working with a smaller menu of lenders than their counterparts in bigger markets.

Those challenges will likely be reflected in their individual ranking of lenders as part of this year`s Brokers on Lenders survey. The annual report, to be published in the October issue of CMP, will see hundreds of brokers “rank, rate and roust” channel lenders.

Mono-lines focused on A deals tend to place high on the list, crossing most regional lines, although alternative lenders are often challenged by their more limited service areas.

Still, all brokers are expected to use this year’s survey to send a collective message to lenders on product mix, rates and competitiveness at a time when some lenders are pulling back from the broker channel.

Francoeur’s broker network has largely helped to insulate her from any regional disparity. Others haven’t been as lucky.

“For A business, we deal with the banks and mono-lines, however, brokers from smaller networks or those working independently may have limited access to the better rates,” she said.

  • George Mazurek, Mgr, CMC Automated Mortgage Corp 2012-08-18 6:36:13 AM
    Perhaps if enough brokers ask lenders that offer non insured products - to publish lending areas, less time would be wasted for the buyer/client in trying to reach lender BDM's or Underwriters or wait for a reply to a submission - especially for tight subject removals.
    Post a reply