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Mortgage Broker News | 27 Sep 2011, 10:00 AM Agree 0
RBC, BMO and the rest of the Big Six, consider yourselves warned: The Office of the Superintendent of Financial Institutions (OSFI) has its eye on you, moving to increase its scrutiny of your lending practices to ensure prudence isn’t sacrificed for volume.
  • Liz | 28 Sep 2011, 05:59 AM Agree 0
    It is about time. Lets start with RBC. The major banks have been "buying" business lately, make no mistake. Customers should be prepared for the "cross-selling" that will occur at the branch level. The customers that choose a branch over a broker for rate only, will likely end up spending more towards various fees and accounts they don't need.
  • Joseph | 28 Sep 2011, 07:05 AM Agree 0
    What a bunch of babies you brokers are!!
    If RBC chooses to cut their rates to win the business, it is their choice. Last time I checked Canada is a capitalist society. If you as a broker only have a rate to offer as your value proposition, you are dead in the water. Better get out your taxi licence as you will need it.
  • Angela Wong-Liao, Invis Inc | 28 Sep 2011, 07:11 AM Agree 0
    Yes, the banks are buying business, possibly to meet their year end targets (October 31st). As a former banker, I also understand some branches may have residue budget left for 2010/2011 bank year, that is why some branches are able to offer very attractive pricing to their clients at this time. I am glad that OSFI is beefing up in monitoring the bank's lending practice. Yes, it is very essential that the Canadian banks are keeping up with their tight lending guidelines, not to sacrifice their integrity for volumes. In view of the European and the American economic crisis looming, stability is more important than growth.
  • Andrea | 28 Sep 2011, 10:24 AM Agree 0
    I am not surprised to read this. I lost B deal to BMO and even if he had managed to improve his credit a bit in the couple of months before the closing he still had a lot of unpaid property taxes and other issues. Ah well that is the business. Do not forget the unofficial tied selling. My sister was told she could get a better rate at RBC on a LOC if she had had other business there, hint hint please move other business...
  • Ad Lakhanpal,Mortgage Alliance | 28 Sep 2011, 12:47 PM Agree 0
    Thanks to the platform provided by Mortgage Broker News to highlight concerns of the brokers. I am glad to see that OSFI has taken notice of this situation. I agree with Joseph's comment that we are in a capitalistic society, but we have rules that should be applied uniformly. Banks are powerful enough as it is, but on top of that,they are not being held to the same standards of customer care as brokers are. The bank mortgage specialists are not being held to the same standards of ethics, education and responsibility as the broker community is. We will gladly compete, but all we are asking is that the playing field should be leveled.
  • Ron Butler | 29 Sep 2011, 05:35 AM Agree 0
    The banks are our competitors. Get over it. I have met mortgage agents who are licensed and cannot even spell" morgauge" so get over saying we are all more ethical, more professional and more educated than bankers. Let's get over RBC being some kind of demon if their default rate is the same as all the other banks. Its a competitive business guys and crying about the competition is non-productive.
  • Liz | 29 Sep 2011, 06:47 AM Agree 0
    Joseph, you obviously missed my point. What I was trying to say is "our community" needs to have a more united message out there. The services a Broker offers is invaluable to the consumer. It is too bad that 70% plus don't use one. Rate is not even in my top selling points.
  • David O'Gorman | 29 Sep 2011, 11:20 PM Agree 0

    Ron & Ad make strong points of what is obvious to the vast majority of brokers & agents but seems to be blindly ignored by our provincial & national associations....the banks are the competition. When the brokerage stream has only 30% of market share we shouldn't need to be competing with each other. Take the bread off the banks table & give the business to the monoline lenders who helped make this industry grow & we will grow as well....but what do we do collectively? We take business back to the banks! Makes absolutely no sense for the long term survival of a brokerage or an industry.
    Furthermore the associatons are not screaming to the rafters about the practices of "bank mortgage specialists"...latest one, "specialist" discounted rate but only on the condition that borrower bought "group creditor life"(garbage life) insurance...that is "tied selling" & an absolute no-no. Turns out that because of the low commission paid by the bank on a dicounted mortgage, "specialist" made a larger commission selling the insurance, than he did on the mortgage.

    Why aren't any of our industry organizations raising hell over this? Because fat salaries & expenses are paid by bank advertising & donations & association Boards are passive & unrepresentaive of the MORTGAGE BROKERAGE industry.

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