Broker gets last laugh on REDX

Broker gets last laugh on REDX

Broker gets last laugh on REDX

One broker’s victory over REDX marks an end to the kind of long battle too many industry professionals say they’re fighting because of AMP memberships.

 “I got my lawyer to write a letter to REDX,” Shawn Allen of Matrix Mortgage Global told “Pretty much to the effect that the inquiries were detrimental to my business and we needed them correct them and they ended up updating the REDX and removing the reports.”

The reports were created when Allen took out his AMP membership and then again when he cancelled his membership. However, all lenders were privy to was the fact that these reports were created – not why.

“Lenders looked at the REDX report and if they see inquiries, they don’t want to do business with you,” Allen said. began following the story in June of this year when Allen, frustrated by the detrimental effect the REDX reports were having on his business, reached out to vent that frustration.

“I don’t really like turning to the media, being a part of the story, like this – but I don’t know where else to turn,” he told in June. “But come July 3, if these reports haven’t been removed from my record, I will file papers and sue CAAMP and REDX.”

Thankfully, it didn’t come to that as the mere threat of legal action against REDX was enough to have the reports removed.

“I reached out to REDX on my own (to no avail) so I had to get my lawyer involved,” Allen said. “The letter said I would take legal action if they aren’t removed.”

Now that the debacle is finally put to bed, Allen has advice for brokers who may find themselves in a similar situation: Pay the nominal fee a lawyer charges for a similar letter.

“It was pretty inexpensive to get the lawyer to draft the letter -- $600 but it was worth it because I can get back to business.”

  • Paul Mangion 2013-10-16 9:34:14 AM
    Good for you. It upsets me that CAAMP has not taken action on this matter. Why do they have to report this at all? Is it not enough to be listed on there website? Maybe agents need to take a hard look if they even want to be an AMP. I have never found the program to be of any value. Real world experience is the value. Our agents know they can piggy back on our experience because we are there for them when they need us.
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  • John Bargis, Mortgage Edge 2013-10-16 9:48:17 AM
    A classic case of David vs a perceived Goliath....The industry needs to be smart about these issues and band together to deal with the irresponsible reporting agencies who don't confirm facts, and those who report defamatory statements to them expecting no consequences...They both need to be held accountable for their negligent actions....Good for you for challenging them Allen....I did the same a few years back.
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  • George Dannewald 2013-10-16 9:57:50 AM
    I 100% agree with you Paul. I've been a mortgage broker since 1978, long before CIMBL/CAAMP came to be and had been an AMP for many years as well. I have never been asked if I were an AMP, and the mickey mouse allowances that were made in the beginning to become an Accredited Mortgage Professional with the AMP designation allowed anyone who stood behind a bank counter to receive it. Anyway, in 2012 I decided not to renew and I still dont get asked!
    Yes, if CAAMP were properly representing us, they would be working with REDX on this matter instead of the individuals having to take them on!
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