The Big Story: Who owns the 'Broker' name?
Misappropriation of 'broker' by road reps is raising industry ire and concerns that mortgage specialists are capitalizing on broker reputations. On the record: James Smythe, Dominion Lending Centres Central and Jon Sowerby, Verico TVH Financial.
Video transcript below:
Jemima Codrington, Mortgage Broker News
Jemima Codrington: A rose by any other name is still a rose, unless you are a mortgage broker. We go inside the broker name game on this week’s Big Story on Mortgage Broker News.
Having the right title to match your designation is an important part of client service. But the recent increase in misappropriation of certain titles has got industry tongues wagging.
James Smythe, Dominion Lending Centres Central
James Smythe: With respect to road reps using the term broker, I actually think it’s a compliment that they want to emulate our service. Having said that, I think that it’s important to differentiate between the two. [All these] brokers are independent, road reps work for the bank. They by their nature can’t be unbiased and it’s an unbiased opinion that we provide that actually adds value to the service that we provide to the clients. So I think that it’s like I said it’s complimentary that they want to emulate us, but I think at that some point the regulatory body should step in and make sure that they stop misrepresenting themselves.
Jon Sowerby, Verico TVH Financial
Jon Sowerby: Well I think road reps using the term broker, I can understand where they are coming from. I just think it’s not even so much a matter of opinion as what they are legally entitled to do and my understanding of the Act is they are not entitled to use that and as long as they do and they are in contravention of the Act, that’s, it’s obviously a problem.
Jemima Codrington: The debate has seen industry professionals calling for a national exclusive mortgage broker designation, just to clear up any confusion.
James Smythe: With respect to an exclusive national mortgage broker’s designation, I think that I’d like to see something tied into our licensing, so that at the time you take your courses and receive your license you have a very specific designation and it makes it clear as to what type of services we provide to the clients. I think it could make it clear for the end user and I think that it would eliminate a lot of the cross selling or the cross misrepresentation you see with respect to how people hold themselves up to the public.