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Mortgage Broker News | 20 Apr 2011, 02:54 PM Agree 0
Continued use of volume requirements may undercut efforts to grow efficiency ratios while threatening broker independence, said IMBA’s new president.
  • Anthony | 26 Apr 2011, 10:22 AM Agree 0
    I have always maintained that volume is anti-mortgage industry and finally someone has stopped and take noticed. It's simply the worst tool to have ever hit the industry whereby we as agents have become unpaid employees of the banks with the same control being bestowed upon us.
  • @kiltedbroker | 27 Apr 2011, 12:03 AM Agree 0
    I am the owner of a small brokerage in Regina SK, we have "status" at 3 lenders. If mortgage volume was the only criteria, we would be "status" with only 1 lender. We have found tremendous success in positioning the quality of our business as we maintain an Application to Fund ratio above 85%. We have been able to negotiate for status based on the quality of business rather than quantity.

    I think establishing relationships with lenders is the most important thing we can do in this business. In response to the following statement, "smaller players pressured to meet those volume minimums may find themselves tethered to one or two lenders instead of canvassing the entire field of lenders for the best fit on a client-by-client basis."

    I would rather have a solid relationship with 2 or 3 lenders where my underwriter trusts me & my business and I have the confidence that they will come through in a tight spot to get the deal done, rather than having status with 20 different lenders that all package their AAA desires with different logos who don't know and trust me.

    Regardless of volume, this business is about relationship and quality of business. From my experience if you are doing good enough business, the lenders will remove the quantity "minimums".
  • Faye Drope | 27 Apr 2011, 07:56 AM Agree 0
    I agree with Albert. I think the industry has grown dramatically over the last 10 years and mortgage brokers that are doing very well don't even want to stop and think about this. Its not about doing well. It is larger than that. I think if mortgage brokers entering into the market had more licencing restrictions and more mentoring this wouldnt even be an issue with the lenders but any time you have an industry that is based on commission this will keep us all running in different directions. The broker industry needs to take a breath and say who is driving this bus? Our industry needs a forum that only caters to Mortgage Brokers so we can address issues that effect each and every one of us. Things will not change nor will there be a different bus driver as long as we continue to let our industry be driven by lender invited associations. P.S. I am a supporter of CAAMP
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