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Broker: Insurer biased toward branches

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Mortgage Broker News | 03 Aug 2012, 11:00 AM Agree 0
Are mortgage insurers playing favourites?
Yes, they are, according to some mortgage brokers arguing that preferential treatment is increasingly extended to the banks – and at the expense of broker reputations.
  • Rebecca Awram, Home n Work Mortgages Inc. | 04 Aug 2012, 02:31 AM Agree 0
    I agree! This has happened to me too! In fact, on one deal the beacons were so low (under 580) that my first reaction is that the clients were lying to me :) I didn't see how they got insured. Other similar situations not quite as dramatic. It would be illuminating to see some type of "audit" of files re-submitted and approved
  • Max Cafissi- Broker | 04 Aug 2012, 02:37 AM Agree 0
    This has been going on for years. As a Broker, I tell clients that if I can't get you approved, talk to one of the Bank Specialists, they'll do anything to make a Commission. Yet, it's funny, it is we, the Brokers, that in some cases have the tarnished reputations with the Public and the Media.

    Something even worse is the fact that some of the Alternative Lenders that also deal with the Banks' " non-conforming " division, seem to favour deals when they are submitted through that Bank's channel. I have personally had deals declined by a "B" Lender and found out later that it was approved when submitted by the Bank's Alternative Lending Dept. I've had many cases where the LTV was increased, in relation to my prior submission, when it was sent in again by a Bank Specialist. Is it any wonder the FEDs are tightening Lending rules. I suspect that either the FEDs or the Banks themselves have done an internal Credit Audit and now realize what a perilous position they are in. I'm sure, sooner or later, we as Mortgage Brokers will get the majority of the blame for this.
  • Nicholas Hamblin - Ideal Mortgage Inc Halifax NS. | 04 Aug 2012, 03:18 AM Agree 0
    Yes , we have seen this happen as well and in fact if we have value or income issues we will use chartered banks vs monoline lenders with better results, the playing field is definately tilted in favor of the banks branches and their road reps !
  • Kenzie MacDermid | 04 Aug 2012, 03:45 AM Agree 0
    Banks own the government, government owns the insurers is just the beggining. The bias towards the banks and elimination of brokers is the objective. Blame it on the explosion of brokers, and the adverstising of low rates for high volumme practice. The banks dont like loosing money on mortgages lost to brokers, and deep discounting, also a result of brokers. You had to expect the backlash sooner or later. Brokers created this nightmare by marketing rate vs. service and expertise.
  • George Mazurek, Mgr, CMC Automated Mortgage Corp | 04 Aug 2012, 08:55 AM Agree 0
    In the 1970's, I remember being able as a mortgage broker, to talk to CMHC directly at the Vancouver office on a pending file sent through a lender when insurance was initially declined. The insurance officer would work with me to provide additional docs to provide the proof needed to receive insurance. If Emili would open up through a tracking system to allow brokers that originated files, to communicate with CMHC and the lender underwriter directly, I think we would have more success in insured applications.
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