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Mortgage Broker News | 12 Jun 2014, 09:45 AM Agree 0
Rate discounting may be a necessity these days but many brokers are pushing back by drawing attention to the added value of advising clients about more than just rate.
  • Ron Butler | 12 Jun 2014, 12:19 PM Agree 0
    I have said 200 or 300 times that there will always be full service mortgage brokers.

    The thing that Blair and Angela don't understand is that while they are more than entitled to have their opinion that the focus on rate is not important they actually don't get to make that call, the consumers gets to decide what they think about lower rates versus sterling advise and a great fridge magnet. The customer will make their own decision in the future about how they want their mortgages marketed to them; it's not up to mortgage brokers to make that decision.

    Blair is 100% correct that advertised rate discounters directly produce less than 1.00% of overall mortgage volume. Lenders have advised me that overall the discounting of commissions to produce lower rates is up about 300% year on year and accelerating so I think the advertising of low rates does have an effect on a bigger audience than just the mortgages originated by the advertisers.

    Finally, please consider everything new starts small. There is a software called UBER that puts people together with drivers who will take them somewhere. This software did not exist 5 years ago and today taxi drivers all over the world are rioting over it. Change takes time but it will happen eventually just ask the folks who used to press vinyl records.
  • Victor Simone | 12 Jun 2014, 02:05 PM Agree 0
    If a mortgage agent or broker buys down a rate to 5 years @ 2,78 % for a mortgage of $ 200,000, what is the House or licensing brokerage earning on such a deal ? Surely this all star producer is in the 90% - 100 % base commission range ?
  • BC Broker | 13 Jun 2014, 03:54 PM Agree 0
    The house gets referral fees from the lender, the insurance co and the professional organization.
    On top of the franchise fee.
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