Turnaround times worry brokers

Turnaround times worry brokers

CMP’s upcoming Brokers on Lenders survey should highlight the growing concern brokers have about turnaround times, as they fight to retain a dwindling number of deals.

Early submissions for the ongoing 2012 CMP Brokers on Lenders survey point to growing worries the broker channel has started to lose ground in that area.

It’s one reason many brokers are filling out the questionnaire in an effort to bring that message home to their lenders.

“It’s really one of the things we need you to keep in mind, especially now,” reads one broker submission – one of more than 300 already filed. The survey remains open Sept. 14.

“Our Lenders can’t afford to let the banks turn around applications faster and hand out approvals faster,” writes another broker. “We’re sunk if that happens.”

The comments echo a MortgageBrokerNews report earlier this year and identifying a shift in client priorities.

 “You know, clients will always be interested in rates, but what I`m finding is that they are increasingly shopping around and if they’re having to wait too long for an answer from a broker on a commitment, then they have no problems walking into a branch,” Tony Anagnostou, an agent with Dominion Lending Centres Forest City Funding, told MortgageBrokerNews.ca. “But what I’m also finding is that new lenders like MonCana are really coming forward with answers within hours, and that’s helping them to compete with other lenders, even if the brokerage has a dedicated underwriter.”

It’s one way relatively new lenders to the channel are working to carve out a niche for themselves, outside of rates. They’re competitive there as well, said Anagnostou, based in London, Ont. But with those tight turnarounds, they're giving brokers a reason to establish new lending ties.

Are there any issues that you feel lenders should address? Fill out a brief questionnaire as part of the 2012 CMP Brokers on Lenders survey.
 

6 Comments
  • More broker complaints... who knew? 2012-08-25 9:01:22 AM
    If brokers want faster turnaround times, then start filling out the applications properly, get your documents up front and stop wasting the lenders time with deals that will not fund. All brokers ever do is complain – “we want more money, we want faster turnaround time, we want better service, we want we want we want... waaah poor me I am a broker and my job is so haaaard”. Well - what are you going to give the lender - and don't say the business... because guess what - you don't even want the lender to have a relationship with the client, and most broker deals don't even last 3 years with a lender before the broker churns their book so they can make more money. You waste the lenders time with sending deals that you can’t even answer simple questions on because you can’t be bothered to really know your clients, most of you can barely fill out an application.

    Sure, there are some good brokers out there, maybe 1 out of every 500. Those brokers are too busy doing their jobs to spend time whining about what a terrible lot in life they have.
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  • Amen!! 2012-08-25 11:19:21 AM
    And that is why the big banks are slowly but surely shutting this channel down. It is just not profitable...
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  • Tomas 2012-08-27 9:43:19 PM
    No rebuttals?

    The silence is deafening. Thanks for the insight on how long broker deals stay with a lender before getting flipped over.
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