“I don’t think the media has a choice – they are presented with information, and that information is then written about. If the media had a credible source within the banks, we would hear stories about them as well.
What happens now is that when a mortgage broker is disciplined, it becomes public. In BC, our regulator releases statements about fraud as soon as it happens. When a bank employee is disciplined for fraud or anything else, no one hears about it – it’s swept under the rug by the bank or ignored. At least, that was my experience when I worked at a bank.”
--Eitan Pinsky, Mortgage expert, DLC Origin and Pinsky Mortgages
“Fraud stories in the broker channel are easy pickings for the media – a broker provides a face and a name to focus on versus the somewhat anonymous image of a big bank.
These institutions often skirt compliance issues that brokers cannot via the latitude given to management level employees. Every broker has stories of deals they have personally turned down, only to hear that a big bank bent the rules to get the deal done. The pressure at bank branches to sell more products these days will only exacerbate the problem. This is the story the media should be following.”
--Robert Mogensen, Mortgage consultant, The Mortgage Advantage Financial Services
“Mortgage fraud is far less than 5% of all mortgages. The incidence of true fraud is about identical in all channels. Today, broker mortgages receive extreme diligence at all lenders – job letters are all phoned, pay stubs not from Ceridian/ ADP require bank statements to back up income, and tax documents are often requested. The down payment is drilled down to $2,500 deposits and transfers. If underwriting got any tougher, it would simply be impossible.
The reality is, mortgage fraud hardly exists – the incredible growth of MICs and private financing proves that alternate financing is what is really happening.”
--Ron Butler, Mortgage broker, Butler Mortgage