Mortgage brokers just want a little respect
The Canadian mortgage market has changed substantially in the past 20 years. Trust companies have been taken over by banks; small virtual banks have introduced new mortgage products; and brokers now play an important and much larger role in matching borrowers and lenders.
Mortgage brokers, many of whom start out as lenders with larger financial institutions, fight against platoons of mortgage specialists deployed by the banks to retain or snatch business away from them.
It's a tough business so it's no wonder that the constant slagging we view daily during the current federal election campaign seems to becoming contagious.
At issue is a flyer a maverick RBC mortgage specialist has been circulating that "grossly mischaracterizes mortgage brokers in relation to bank specialists," says Rob McLister on his CanadianMortgageTrends blog. "It’s a document that demonstrates a stunning lack of knowledge, professionalism and discretion," he adds, taking it apart point by point.
Essentially, the document (from which RBC has been quick to distance itself) maintains that brokers will drop you like a hot coal once you get your mortgage and that the rate they'll stick you with will be driven by their needs, not yours.
"Fiduciaries that mislead the public for personal gain are hazards and liabilities to their employers," McLister goes on to say about the RBC ad. "Anyone who would author this sort of content should be sent packing because Lord only knows what she's telling clients in private."
What do you think? Does the original document have a ring of truth? Or is it just an example of shabby 'damn the competition' marketing?
By Gordon Powers, MSN Money
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