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Mortgage Broker News | 24 Nov 2009, 12:00 AM Agree 0
A panel of lenders at CAAMP's annual conference said they believe mortgage brokers' share of the market will continue to grow, but also emphasized the need for greater efficiency and speculated that volume bonuses could be scaled back over time.
  • Naraine C | 25 Nov 2009, 05:45 AM Agree 0
    First off no one is taking the lenders to task as it seems that organisations such as CAAMP are more interested in lookng out for the lenders and protecting their GREED for wealth.

    What about brokers who are working hard at bringing the lenders business, expensing themselves to build relationships with potential clients. We spend money on Advertising, utilities, auto expenses, supplies, membership fees to organisations that do nothing for brokers and more...
    We have expsenses too.
    What about the millions of dollars in profits that the lenders make. Can they justify all the changes they are bringing. Its seems that they are on full assualt on brokers. They want us to bring them more clients, boosting their PROFITS but they want to give us pittance for the hours and hours of investment of time and money we put into helping them make more money.

    When are brokers going to stand up and demand that the lenders compensate better and also follow their own guidelines. LET THE CHANGE COME FROM THE BANKS NOW. How about fair business practices. Let the banks follow the same guidelines they gave us. Stop giving the customers the lame excuse that " the banks have more flexibility"

    ARE brokers aware that the banks are recruiting brokers agressively? it seems, they want to discredit and destroy the independant broker share of the market while they build thier alternative.

    its seems to me if you are ethical and work hard at bringing good and proper business to the banks they should
    respect that and compensate fairly for that.

    what "warnings" is Boriz Bozic talking about? Does he not see that the industry is going thru some changes and regulations are now in place to bring about accountability and change in Ontario.

    For all those brokers who "think" the banks have good intentions, think again, the banks want all the profits and will try to find cheap labour and squeeze you out of business and if they don't follow thier guidelines and are accountable to no one, we won't have any business in the near future as the disadvantage is obvious.
    This is my opinion, it would be interesting to hear someone else's.
  • Steve G | 25 Nov 2009, 08:28 AM Agree 0
    I agree with most of Naraine is saying... CAAMP is an organization of lenders for lenders... And the Lenders are creating a business model that will reward only the very top 5% of the brokers in the industry..
  • Steve G | 25 Nov 2009, 08:29 AM Agree 0
    ...oops, hit the submit button in error...
  • Joe Ornato | 25 Nov 2009, 08:46 AM Agree 0
    I like the passion that Naraine has, but I think what Boris what referring to is the quality of business we brokers send in. We do need to be more prudent is pre screening and educating clients so that deals don't fall apart. Efficiency is a key to profitability and for the most part, brokers are unorganized!
  • Joe Ornato | 25 Nov 2009, 08:49 AM Agree 0
    ...oops, I hit enter without finishing. So if we can become organized, the lenders should do their part and provide superior service. A lot of lenders want us to be efficient, yet they return calls whenever they feel like it! How can we be efficient if the underwriters don't own the relationship with the broker. It's a two way street and brokers have to do better, but so do the lenders!
  • Louis | 25 Nov 2009, 08:50 AM Agree 0
    What a great point...CAAMP is Canada's 'mortgage' association, representing both, brokers and lenders. But as for us brokers, we have to come to realize that our main supplier is also our main threat - namely the lenders. They are aggressively in the process of increasing there internal sales force, even giving them better treatment in terms of rates and underwriting (it’s a fact, check it out you’ll be surprised). We brokers don’t have an association that represents us uniquely. CAAMP is not bad when it comes to general public and government lobbying, but as far as uniting us to fight for our rights and our interests its taxation without representation…
  • Liz Doyle | 25 Nov 2009, 10:55 AM Agree 0
    In response to Louis comment re its time for a "Mortgage Brokers" Association...provincial mortgage industry associations typically represent the Broker/Agent viewpoint more specifically as opposed to CAAMP, the national organization, who also represents the lender's perspective. Each has a role to play and a contribution to make to the industry.

    The Ontario mortgage industry association, IMBA, has a mandate to represent the 'mortgage brokers’/agents' viewpoint - as its name suggests we are the "Independent Mortgage Brokers Association of Ontario". IMBA does look at industry issues from the Brokers perspective. IMBA has made significant contributions to representing Brokers/Agent interests in the past - especially with respect to government regulations and input on the recently introduced legislative changes - and will continue to do so in the future. There are some exciting new initiatives to be introduced soon and we are always interested in hearing input from the Broker/Agent community about what their concerns are and how IMBA can best provide value to their members. Send us an email and let us know what is important to you!

    I would encourage anyone with passion and concern from a Broker/Agent perspective to get involved and become a member at the provincial level: if you are in Ontario. Make a contribution to your industry by volunteering some time with your provincial association. Help to make those changes you want to see. Complaining about what isn’t happening will never result in a change for the better. Educate yourself, know and understand your lenders, carry on business day-to-day with integrity and top notch ethics.

    Lenders may hopefully realize that the broker market who will prove to be most profitable in terms of partnership are not those based on volume but those who are educated, knowledgeable and maintain high EFFICIENCY standards - and carry on business with the utmost of integrity. Support lenders who are willing to accept your quality business whether its 1 deal or 100 deals a year. EFFICIENCY bonuses, not VOLUME bonuses should be the focus!!!
  • Susan Dunn | 25 Nov 2009, 01:10 PM Agree 0
    As usual, lenders pretending to actually participate and provide information but not committing to anything. It seems to me that some lenders are hiding behind "efficiency". What does this mean? Lots of volume or mortgage requests that are submitted with complete applications and documentation and actually fund?

    I have a well over 85% funding and efficiency ratio with the lenders that I deal with but I have had lenders who say they want a commitment on volume. Personally, I do not commit anything to any lender. My policy is that if you have the best product, the best rate and can provide reasonable service to me and my client you will get the business. My business depends on client satisfaction and I am not about to jeopardize that for the sake of a lender who demands a minimum volume in order to take my business.

    Besides, when I read the lender contracts that I am asked to sign they are all about what is expected from me, the broker, with very little on what they are actually committing to. There is no guaranteed turn around time, no arbitration arrangements on turn downs, no guaranteed payment, no guaranteed "efficiency" on the lenders part but they want me to guarantee a minimum amount of business for the privilege of dealing with them.

    When will some of these "lenders" start providing knowledgeable staff, BDM's that actually answer their phones, and real service to the broker community? Try finding someone at a bank who can actually make a decision or supply an answer to an unusual question - like “What's the formula for calculating your IRD and why are you coming up with a different amount that I am?” or “What's the Interest Adjustment going to be on closing and how will it be collected?” The usual response is "What do you need to know that for?" or “Nobody’s every asked that before”. BDM’s actually earn a commission on the business “their brokers” fund. How about if they actually provided real service and information instead of spouting the party line on volume. Most brokers could do without the “services” of the BDM – lenders could then pay the broker who is actually submitting the business and servicing the client more.

    Most lenders reduced their finders fees and volume bonus this year citing “profitability” as their reasons. Seems like a pretty lame excuse given the profits that are now being reported by financial institutions.

    If brokers would actually band together to deny their business to institutions that do not deal with us fairly or offer reasonable compensation – such as renewal commission - we would have the clout required to make changes. CAAMP is not the organization to help us do that as they are way too lender focused. Maybe IMBA could step us and actually work for/with their membership to start a dialogue with lenders on what is reasonable and acceptable to the broker community as far as compensation and fair treatment of the broker channel is concerned.
  • Dan | 25 Nov 2009, 03:30 PM Agree 0
    It's very simple:

    Most banks CAN succesfully survive and prosper without brokers!
    We - CAN'T !

    Most big banks are lending their money to small lenders and banks can cut them off or force out of the market at some point. For now IT'S ALL ABOUT MONEY (profit, cost of broker channel etc.) and we have to use today's moment to gain momentum and build up on the situation.


    BB are stealing our clients we are sending to them - PROVEN FACT (especially Scotia)!
  • Dan | 25 Nov 2009, 03:33 PM Agree 0
    Most talking was how to please our lenders partners ...
  • Jim | 26 Nov 2009, 04:14 AM Agree 0
    As the major sales force for the majority of mortgage lenders, we brokers need to "unionize" so to speak to get what we deserve, to be compensated fairly. Lenders pay to get our clients and then pay an internal sales force to retain the clients at renewal. it would make more sense for the lenders to partner with brokers through out the life of the mortgage to retain the customer instead of competing with the very source that builds their database.
  • John Steffler | 26 Nov 2009, 05:31 AM Agree 0
    I believe that Efficiency is very important to not only the lenders business but ours as well. There is no doubt that we are at a stage where our business is changing. Mortgage scorecards should run both ways. Bottom line Lenders should reward on efficiency.
  • prashant | 26 Nov 2009, 08:14 PM Agree 0
    i heartily agree with almost all comments here. lender will steal your clients and with exception of a few vast majority provide lousy service.. why ?? just because they can! we have a monopoly type situation...

    if all brokers were to send their deals to other FI such as trusts, credit unions... they generally do have better service levels and will respect the client as yours..

    by the way how many have notice many FI are now sneaking in mortgage insurance in the commitments?? they expect us to sell yet another of their products and we get paid nothing for it??
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