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Lender extends broker commission program

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Mortgage Broker News | 06 Mar 2012, 11:00 AM Agree 0
Xceed has extended its bonus offer of an extra 25 bps for brokers until the end of June despite criticism from brokers that it is unsustainable.
  • Ron Butler | 07 Mar 2012, 03:45 AM Agree 0
    If a lender is offering clearly competitive rates then I welcome higher commissions; however I think there is always an ethical danger in offering substantially higher commissions to deliver customers at higher than competitive rates. It reflects badly on our business and attracts unwanted regulatory responses.
  • Right On Ron | 07 Mar 2012, 04:45 AM Agree 0
    I absolutely agree with you on this. Who the the broker really working? The best interest of client or their pay cheque.
  • Victor Matos | 07 Mar 2012, 04:49 AM Agree 0
    The practice of some Lenders enticing some Brokers with higher bps commission, can really hurt those Brokers reputation as they will be known for favoring receipts of higher commissions for themselves, rather than servicing their clients with competitive interest rates - not acceptable...
  • Jeremy | 07 Mar 2012, 05:38 AM Agree 0
    Xceed is open for business today, but will they be around tomorrow so you can collect that pay cheque? Personally, they could offer 170 bps and I still wouldn't support them. Competitive rates is a concern, obviously, but what is stopping from closing their doors yet again?
  • Jim T....Advent Mortgage | 07 Mar 2012, 12:24 PM Agree 0
    Totally agree with you Ron. Firstline and their ridiculous points and basis points program is totally unethical. How can a broker offer a client a rate higher that the floor rate available just so they can bank points for future deals? This practice stinks and and too bad the media didn't didn't catch wind of this. I would have loved to see FLT and the brokers who use them try to explain this to their clients.
  • C.M. | 08 Mar 2012, 05:57 PM Agree 0
    While I do agree that Brokers should not be guided by higher commissions, I think it's important to note that Xceed is offering some unique mortgage options and are stepping up with innovation. They have different mortgage solutions such as the XtraGreen, RESP and Prep mortgage solutions. They are specialized programs and not for all, but I applaud them for bringing something different to the table. I wish more Lenders would focus on creating a niche and differentiating themselves; give Brokers a reason to use them for a reason other than status, higher commissions etc. It's important to remember that our job and ethical responsibility to do what's best for the client, regardless of our compensation and rewards. This is why clients use Brokers and if they learn or believe otherwise, we will do injustice to our industry, lose respect and market share.
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