Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Broker: CIBC giving brokers raw deal

Notify me of new replies via email
Mortgage Broker News | 24 Jul 2012, 10:00 AM Agree 0
Brokers are getting a poor deal in CIBC’s offer to buy back their accumulated FirstLine BasisPOINTS, according to some mortgage brokers pointing to possible tax implications.
  • Concerned borrower | 25 Jul 2012, 05:40 AM Agree 0
    Are you kidding me? As a broker, it is your responsibility to, among other things, get your client the best deal possible. This program does the contrary. It allows you to offer one client a higher rate so that the broker can ‘bank’ points and offer another client a lower rate. Those of you who have these points have screwed your clients to get them. Well guess what? Now you are being screwed by CIBC. What a complete joke. One final thought – those of you that used FLT are lucky that the media did not get a wind of this practice. Actually, maybe they will………
  • Len Lane | 25 Jul 2012, 05:43 AM Agree 0
    I'm glad I don't have this issue with FL but offering 62.5% on something that they could have easily said you get nothing and close the doors next week and have you chase them for it later doesn't seem like to bad a deal... the few points I had with them I was told along time ago that they belong to them.
  • one dumb broker | 26 Jul 2012, 01:37 AM Agree 0
    are you serious... Power has a million basispoints left... that makes me seriously question his ability to offer proper advice. If you didn't see the writing on the wall 18 months ago with FLM then you should take a hit... Smart brokers liquidated their points and basispoints to either win deals or help clients... or do cashback's. Stitting on a million basispoints is/was not very smart.
    To the concerned borrower... I will tell you that it is the minority of brokers that "screwed" clients in order to accumulate these credits... FLM granted many for status and in the early days you could accumulate by helping the BFS clients and bank a large quantity.
  • Kevin Power | 15 Aug 2012, 11:19 PM Agree 0
    To Concerned Borrower and one dumb broker. As usual, people who make these negative, personal attack comments, do not have the courage to state your name. You hide behind the trees to shoot your mouth off.

    For you information, I am a very successful and respected broker and I did use the Basis Points Program in accordance with the intention that it was a sales tool to win business. Your insinuations are baseless and unfounded.
  • Keith | 25 Aug 2012, 08:39 AM Agree 0
    I don’t understand how anyone could in complain about this offer. The FirstLine points program was a loyalty rewards program, brokers did not have to purchase the points with hard money, they did not take a cut in their compensation to earn them – they were a GIFT. They were a bonus incentive to the broker community from CIBC to incent them to send volume and to build loyalty to the FirstLine brand and products. They were in addition to the finders fees, reduced rates, etc that brokers received for their volume. They were there to get brokers to keep coming back – and they worked.

    The fact of the matter is that under the points agreement they (CIBC) are not obligated to pay one cent out to the broker community. They reserved the right to pull the points, without notice to the broker. If you ask me, it says something that they did not do that. If you do not want to be responsible for the tax, then do not collect the money. To complain that CIBC is even prepared to do this to smooth the loss of FirstLine to the brokers is something to be thankful for.

    Brokers that complain about this offer sound like petulant spoiled little children.
Post a reply