It’s up to RBC to ensure all 1,400 of its mortgage specialists convey accurate information about the broker channel, CAAMP’s president said Wednesday, suggesting the big bank must also “deal” with the individual responsible for drawing his members’ ire.
“CAAMP has had continuing discussions with RBC,” Jim Murphy told MortgageBrokerNews.ca. “This is not something RBC endorsed or something it was aware of and they have issued a statement denouncing these highly inaccurate statements. While it is important that RBC deal with this particular mobile mortgage salesperson, there are 1,400 others. On a go-forward basis, RBC has to ensure that all of its corporate communications about the broker channel are accurate.”
Murphy’s association has already won some of those assurances, with RBC apologizing for the flyer, produced by one of its B.C. mobile specialists and perpetuating stereotypes about brokers. Since it began circulating among the country’s 15,000 mortgage professionals, the leaked document has infuriated and dismayed. It has also spurred calls for RBC to discipline the specialist.
“We again spoke to RBC this morning,” said Murphy, “and they are dealing with the specialist.”
While that bank employee isn’t associated with CAAMP, her employer is. Still, any move to censure RBC would require a formal complaint.
“RBC is a lender member of CAAMP,” Murphy told MortgageBrokerNews.ca. “CAAMP cannot deal with issues unless we receive a complaint. Our ethics process would then review the issues based on the complaint received.”
The big bank moved as early as last week to distance itself from the controversial flyer of one of its mobile mortgage specialists – apologizing for its unflattering and inaccurate depiction of brokers.
“The RBC brand is defined by our clients and partners and we sincerely apologize for the inaccurate information that was presented in the document,” wrote RBC Public Affairs Advisor Nicole Fisher, in a letter to broker associations in Western Canada.
“The opinions expressed in the document by the mortgage specialist do not reflect the positions, strategies or opinions of RBC. We are following up directly with this mortgage specialist to ensure future collateral accurately reflects the RBC brand,” Ian Colvin, RBC’s senior manager for communications in British Columbia, told MortgageBrokerNews.ca Monday.
Those opinions were expressed in the form of a flyer highlighting the educational, philosophical and operational differences between brokers and bank-employed mortgage specialists. The internal document effectively casts the former in a negative light.
“Brokers will charge set up fees and have other hidden costs you should be aware of,” reads the undated document -- “Understanding the difference between mortgage specialists and mortgage brokers.” An RBC logo and the name of one of its British Columbia mortgage specialists appear on the flyer.
It continues: “Brokers will farm out your mortgage to a number of companies and then will set you up with a financial institution based on only the lowest rate, no other factors.” And, it continues: “When selling your mortgage, the broker and the financial institutions reviewing your file may pull numerous credit bureau requests depending on their software capabilities.”
The RBC comments follow on the heels of a MortgageBrokerNews.ca article exposing the document. Earlier attempts to win a comment from its author were unsuccessful, although brokers continue to call for her written apology.