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Mortgage Broker News | 26 Sep 2011, 10:00 AM Agree 0
A leading Toronto broker is asking lenders to consider returning limited approval power to BDMs, at the same time making those front-line reps more accountable for their underwriting decisions.
  • Liz | 27 Sep 2011, 04:42 AM Agree 0
    I couldnt disagree more. I have never thought this was a good practice. There is a commission upside, lets not forget. And to be held accountable for deals that default on top of that, is preposterous.
  • Angela Wong-Liao, Invis Inc | 27 Sep 2011, 05:08 AM Agree 0
    I disagree to give more discretion to the BDM in regards to underwriting, but BDM should have some discretion in regards to pricing to match competitors. I love the system of Scotiabank and I deal with their broker relationship manager who will look after my deals from beginning to end. The broker relationship manager is experienced and reasonable who alway tries her best to escalate for exception if requires. The Scotiabank BDM will focus on marketing and promoting the bank to other mortgage professionals, I think it is very streamline and effective.
  • V.McH | 27 Sep 2011, 06:40 AM Agree 0
    I love how some brokers run to the BDM when we don't hear what we want to hear on our 'straightforward' deals. So the suggestion is to muscle them into approving questionable deals,(if they're not getting approved then something is questionable) and then expect them to take the heat when it goes south? How about brokers develop open dialogue with our underwriters, who should know the parameters of their lending guidelines, and empower the underwriter to decide to escalate? Then you can go have a beer with your BDM (paid by the lender) and he'll still be your buddy.
  • Woj Pianka | 01 Oct 2011, 07:30 AM Agree 0
    This is a very sensitive issue. On one end, we want to get our deals funded and closed for our clients. However, pushing thru deals that the underwriters decline is not very professional. You create animosity, when you question someone's judgement and work responsibility. The U/W are trained in their jobs. They are there to protect the lender, the client and the housing market in general. Do we want to see the fiasco that happened in the US due to high volumes and pushy agents trying to get shady deals that done that dont really qualify with the lenders guidelines. In the end everyone suffers.
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