Credit union to make good on renewal fee promise

Credit union to make good on renewal fee promise

Brokers are crediting with "encouraging” a B.C. credit union to honour the renewal fee pledge of a retired program.

“Thanks for the help and as a result of your story and our communication it looks as though they are going to honour these renewal fees,” wrote Michael Sjerven, broker at Vivid Mortgage, Tuesday.

MortgageBrokerNews was also forwarded an email from Northern Savings Credit Union, dated the same day.

That communication offers a mea culpa and a promise to make good on a pledge that up until now appeared to have been deferred indefinitely.

“Northern Savings Credit Union discontinued its broker renewal annuity program on January 1, 2011,” writes the lender’s management team. “Regretfully, when this change was implemented there was no formal notification to brokers, other than removal of the references to the annuity program on our rate sheets.  

“Northern Savings will work with those impacted to facilitate payment of program fees upon satisfaction that all regulatory requirements have been met.”

The letter also confirms what MortgageBrokerNews reported earlier this month, referencing a number of brokers who are actively seeking to be paid under the terms of an annuity program on deals that have come up and been renewed after that 2011 cutoff date.

A Vancouver broker who sent several deals to the CU before the program expired told earlier this month that he received at least one renewal under the plan and was surprised to hear about the cancellation. With another client’s mortgage approaching renewal, he reached out to a BDM at Northern Savings for clarification.

“I was told that I wouldn’t be getting renewal fees on that deal even though it closed when the program was still in effect,” the brokerage head, a big supporter of lenders with trailer fees, told, speaking on condition of anonymity. “Though I understand why they wanted to discontinue the payments, I believe they are still obligated to pay renewals on deals submitted under the program.”

At the time, Ken Doleman, president of Northern Savings Credit Union, promised to address the concern and those of other brokers willing to come forward. They since have.

“We ask that you advise the brokers in your office to contact Northern Savings by email if they were impacted by the changes to our annuity program,” reads the Tuesday email. “A separate high priority email address has been set up with a designated staff member to assist the brokers.  The email address is:”

  • KS, Nanaimo 2013-02-21 6:01:40 AM
    This is very great news and timely as my Lawyer was just preparing documents! I have contacted them and have been told to expect a response by end of next week. I truly hope they make good on this promise. I applaud everyone for the courage to keep pressing Northsave.
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  • Ottawa Broker 2013-02-21 6:32:46 AM
    This is good for the brokers that used them, I just hope no one congratulates the lender for doing this, they are only doing this because they have to or they will face lawsuits. I hope all the western brokers see the light with this lender and stop using them. We as brokers need to value what we bring to the lenders and be more selective in what lenders we use. Rate and bps paid should not be in the equation when selecting a lender. if it is, we as brokers will continue to have battles like the ones faced by the brokers in west that have supported this lender. If another lender can do the deal, don't use this lender. The lenders do not control our industry, we as brokers control our industry.
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  • Ted Jones 2013-02-21 6:50:19 AM
    I too have been contacted directly by Northern Savings to facilitate the receipt of the outstanding and future commissions on renewals. They have asked that we submit the original signed Disclosure Statement as well as a signed Consent form to in order to begin processing the fee’s. I am hoping that they do follow through with payment with the least amount of followup by all participants. Thank you to all who contacted me and Northern Savings to ensure that they reconsidered their decision and to enable the grandfathering of the prior mortgages.
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