Was the crisis a good thing?

Was the crisis a good thing?

If there is anything good to come out of the credit crisis, it's the opportunity to improve broker/lender relations, industry members heard at the annual CAAMP expo in Toronto.

"I was pleased with the credit crisis because it brought everything to the table," said Vince Gaetano, vice-president of Monster Mortgage, as part of the mortgage broker panel.  "Before it was just a volume game, now it's a quality game."

In a discussion that ran the gamut from making more money to getting into the business, a popular topic concerned the changing relationship between brokers and lenders.

"If brokers and lenders wrote down the definition of partnership it would be so different," said the Mortgage Centre's Tom Hogg. "I remember speaking a few years ago and saying 'we have to change the way we do things.'"

Peter Kinch, a DLC broker and this year's CMP Top 50 broker, concurred.

"You have two customers - one is the borrower and one is the lender."

The general consensus was that keeping lenders happy is equally as important in today's climate as serving clients, but it's something that has to be balanced carefully. For instance, while it's important to give clients the best service and retain them good rates, it's not fair to receive several commitments from several lenders at the same time.

But that wasn't to say the broker panel, not to mention the audience, didn't feel it was a two-way street.
"Clap your hands if you've submitted a deal and then not lost it, but had to compete with the bank branch to keep it," asked Kinch to the audience. The overwhelming applause spoke volumes.

 

3 Comments
  • Ann 2009-11-27 1:21:45 AM
    I don't agree there are 2 customers - I believe there are 3!!!
    Lenders in th past year to 18 mos. have started believing they are gods, but mark my words, it never makes sense to become to high an mighty because the cycle always changes.
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  • Naraine C 2009-11-27 4:15:45 AM
    The reason we lose deals to banks is that the banks top brass allow their employes "flexablity" to NOT FOLLOW Their guideline when servicing mortgage clients. Even their tellers are in on. On Every occasion, when my clients go in to get payout statement or arrange for their RRSP to be used as Down Payment, they have been approached by the representative, promising better rates. They promise the rate first. Not caring if its "B" or "C" client. The ugliness is transparent when these clients do get an approval from the banks. I am no longer shocked by this but appalled. They definitely should not have been quailifed for an 'A' deal. I am happy for the client but disgusted because I studied the guidelines and fit my client to a program that they qualify for accepting that at this time he or she will not qualify for a bank deal.
    So what is the strategy for the banks.

    1. Discredit Mortgage brokers and agents. You can see how they are doing it. Under cutting our deals and making us look incompetent to our clients.

    2. Force us to follow their guidelines but they WON'T. They allow their staff "flexability" on their guidelines.
    So I am curious as to how they do this. In terms of documentation. It does mean that alot of them know about this practice internally.

    3. Infiltrate organisations like CAAMP and IMBA to control the direction of their agenda of pushing us out of business while they hire cheap labour as they setup their internal teams.

    4. Continously attacking our efficiency while they do nothing about theirs.


    To those who suck up to the banks, remember you will be phased out too. Its just a matter of time.
    Post a reply
  • Rajesh Kothari 2009-11-27 7:51:07 AM
    I absolutely agree with Narain C. As many brokers may also agree that the proof of down payment and the source of funds & explanation of larger deposits is an important condition included in a Mortgage Commitment thru the broker channel by most banks. However the same banks never question the source of down payment or explanation for large deposits in the accounts with the same clients at the branch level. All they care about is that the down payment is there in the account at least 10 days before the closing date. The same bank that cites FINTRAC and CMHC /GNW requirements to the brokers regarding source of down payment ,conveniently allow their branch mortgage specialist's to flout these very same requirements when dealing with a customer directly at the branch .

    As such , I prefer to give my business to non-banking mortgage companies like ResMor Trust, Home Trust , First National who have one set of rule for everyone and want me to grow my business and are not out there to compete with me. I would suggest all brokers to take this seriously and deal more with broker friendly companies like ResMor Trust, Home Trust, MCAP and First National.
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