There’s no debate: Mono-lines remain the best friend a mortgage professional has, say brokers. Still there are at least five key areas where improvements could help them advance against the banks, say industry veterans.
CMP canvassed brokers from across the country on what exactly mono-lines need to do to keep more of the broker business now going to the banks. Here’s the Top Five ways brokers are challenged by mono-lines.
1. Marketing meltdown: Mono-lines just have to do a better job of telling consumers who they are, say brokers.
“Oftentimes a considerable part of the consultation/sales process is having the consumer become familiar with a brand they may have never heard of,” says Scott Bentley, with Verico Premiere Mortgage in Halifax. “Many request 'a Big Bank' simply because that is who they know, even if rates, terms, privileges and prepayment penalty policies are not as favourable as the mono-line.”
2. Paperwork problems: Quite simply, many mono-lines have onerous, time-consuming instructing documents, complain brokers. Some real estate lawyers agree, arguing the banks have them beat in terms of fewer specific requirements.
“I have had complaints from lawyers that the paperwork for monoline and non-bank lenders took more time,” said Mike Missere, a mortgage agent with Mortgage Intelligence in Thunder Bay, Ont. “I was able to stop that, but from my standpoint I have to field more queries from the lawyers about the legal paperwork when the lender’s not one of the chartered banks.”
3. Rascally rate premiums: Applied to BFS and rental deals, they somethings stick in the craws of clients and brokers, alike. Mono-lines attach those extra bps for a good reason, although the fact banks don’t presents a challenge.
4. Forgetting to share: Several mono-lines do a good job of sharing the client with the broker by mentioning them in correspondence with the borrower. But some drop the ball here, say brokers.
“I’m talking about mentioning the broker by name in correspondence with the client, reinforcing the idea, in the client’s mind, that the lender and the broker are partners,” said Mauro DiCosola, with Dominion Lending Centres Mortgage Village in Mississauga. "Some mono-lines do this already and the others should follow that lead."
5. Confounding conditions: Brokers frequently complain about the conditions mono-lines place on their deals and the extra legwork required of clients. That just makes it easier for the banks to snag them after commitment letters have been dispatched.
“My biggest beef is around conditions,” says Paul Mangion, with MCC in Mississauga, “We need more reasonable conditions and common sense here since we lose deals to branches when we send clients in there for more info or to ask for too much unnecessary documentation.”