It’s one way to diversify revenue in a slowing market, but the idea brokers will soon be helping clients into unsecured credit cards isn’t sitting well with some industry observers, suggesting it runs counter to their primary mandate.
“OK, I believe in widening revenue opportunities,” Paul Mangion, an MCC broker in Mississauga, told MortgageBrokerNews.ca, “but not with unsecured credit cards when we make so much money refinancing people to pay for this type of debt.
“When have you seen a professional, educated individual selling credit cards at the mall?”
The comments echo the minority of responses to a MortgageBrokerNews.ca article last week, announcing a move by one of the industry’s largest broker networks to brand an unsecured credit card with its own name. Its brokers and agents can begin to offer the Visa cards to past and current clients starting next month.
The move has been largely heralded by brokers in and outside the network as a sign of progress and industry maturation.
“This is something I have been suggesting our industry needs for years,” wrote one MortgageBrokerNews.ca reader.” I am glad to see it has come to fruition.”
Still, others have expressed some of the same qualms as Mangion, suggesting the move could undermine broker reputations.
“Cross selling life insurance, debt settlements, insolvency counseling is a good thing for the consumer,” he said. “Selling credit cards makes us look cheap.
“The big banks push the government to make it harder for people to refinance their house and we argue that the banks are the problem with their easy credit cards and the rules should actually be changed on credit cards and not mortgages.”