Perhaps, all other ad funds, such as DLC’s, have been merged into this new fund. The goal is to create more consumer awareness about mortgage brokers and, more broadly, educate them about the industry. The industry ultimately came to the point where it determined that the job was simply too big for any one network alone and that by combining efforts, we were better able to compete with the banks.
- A minimum experience and/or education requirement for agents:
By 2020, everyone understood that the industry needed more professionalism. A formalized training regime prior to licensing and along with required work experience is used to strengthen the reputation of mortgage brokers and networks. Possible prerequisites include two to four years of post-secondary education, multiple standardized courses and two years work experience. Existing brokers already licensed were grandfathered in.
- Compensation models focused on paying brokers for the life of the mortgage:
It's fantastic that a growing list of lenders is now offering renewal compensation; however, by 2020 – along with greater broker support for lenders that enhanced their retention efforts at renewals -- more people in the industry saw the advantages of this type of partnership. This co-branded communication has create long-term revenue for agents and a better book of business for the lenders.
- Streamlined compliance forms and simplified documentation:
In B.C., the brokers have many compliance forms to get signed, including a lengthy commitment, APR disclosure, form 10, consent, application and a mortgage protection waiver in addition to other conditions. That’s simply more documents than a bank rep is required to produce. By 2020, the industry will have decided to consolidate forms and come up with a standardized and streamlined compliance checklist. As well, a client agreement that protects the brokers if a client opts to go elsewhere prior to completion could be worth investigating.