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Broker: massive broker cull to cut buy-downs

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Mortgage Broker News | 19 Apr 2012, 10:00 AM Agree 0
With the Ontario regulator now releasing its final tally on relicensing casualties, a leading broker is arguing the high losses will help cut the pressure to buy down rate.
  • Jim | 20 Apr 2012, 11:30 AM Agree 0
    The loss of these marginal brokers will not eliminate or reduce buy downs. Buy downs were not a result of marginal brokers - they are a result of more experienced brokers trying to compete with branches. Having said that, the loss of these agents is positive for the industry as there are way too many of us in the bis.
  • Ron Butler | 20 Apr 2012, 11:13 PM Agree 0
    I agree with Jim, advertising low rates and working with rate websites is very expensive, only very successful brokers can afford those costs so the non-renewal of licences idea does not wash. Buying down rates is here to stay, you are entitled not to like it but it won't be going away.
  • Kevin J. Power, President Power Mortgages Inc | 20 Apr 2012, 11:28 PM Agree 0
    Between the agents who buy rates down tot get the deal and pay finders fees of up to 50% to referral sources including bank reps are bad for any industry. The hidden referral fees are unethical and illegal. People who do that cater to the lowest common denominator, greed. Any business that they develop is always up for auction. That program never works in the long term.
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