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Mortgage Broker News | 13 Oct 2011, 11:00 AM Agree 0
It may be the end of a very lucrative era for brokers using TD. But for one high-volume broker, in particular, it’s the loss of a $400,000 shot in the arm, with the bank finally moving to bring its generous mortgage replacement policy in line with other lenders.
  • JS | 14 Oct 2011, 04:05 AM Agree 0
    About time, this gets rid of the churning that goes on in the industry that has forced the lenders into near 0 profitability
  • George | 14 Oct 2011, 04:14 AM Agree 0
    This lines up with TD's move to pay realtors 50bps as a referral fee. We have not used TD in years and these are 2 good reasons for you brokers to think twice.
  • Reality Check | 14 Oct 2011, 04:14 AM Agree 0
    The sense of entitlement that Mortgage Brokers seem to be unashamed of, is completely disgusting. We get paid to provide New business, not churning around existing clients. Experienced brokers like this should be doing what's best for their client instead of complaining about the loss of "easy money". We earn our livelihood, not complain it.
  • Dustan Woodhouse | 14 Oct 2011, 04:28 AM Agree 0
    I see this as a potential negative for the clients more than anybody else.

    Although I personally tend to focus on the pending referral from giving a client good service, as opposed to the commission on the file I am working; there is little doubt that most of us are still motivated by the dollars per file. To that end how many clients would still be sitting in Prime + products from 2009, rather than having been shown the savings of a refinance to P- the following year were brokers not being paid to redo those files.

    How many banks sales force reps went back through their book and re-did dozens of mortgages for zero commission when the discounts came back in 2010?

    I like to think that most brokers will take care of their clients interests first, but TD’s move dampens the motivation for some I suspect. With variable discounts all but gone, and the potential for a second wave of variable refi’s ahead should discounts come back will test us all for sure.

    Hopefully brokers will see that even doing the odd pro-bono work tends to lead to more referrals; files that you do in fact get paid on.

    At the end of the day though, yes – the easy money is gone.
  • Blair Anderson | 14 Oct 2011, 05:40 AM Agree 0
    Well said RC. Brokers need to worry less about reaching status levels with any one lender, and keep the lender community competitive. And only pick lenders who focus strictly on conversion ratios, nothing else.
  • Long over due! | 14 Oct 2011, 06:14 AM Agree 0
    Paying brokers to recycle the same clients over and over has proven not to be a financially sustainable model for this lender. Surprise surprise.
  • Angela Wong-Liao, Invis Inc | 14 Oct 2011, 11:37 AM Agree 0
    It make sense that TD stop double dipping paying the brokers for their refinancing deals as most other lenders do not compensate for the full mortgage amount for refinancing, only compensate on the top up amount. I agree with this policy because I do not want my clients to pay penalties on refinancing with their own banks.
  • Alberta | 18 Oct 2011, 12:45 PM Agree 0
    Well that is news to me, I never received a full commission on a td deal unless the client paid the full pre-penalty and only than if it made sense. I guess I missed the memo
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