Bank road reps advertising themselves as 'brokers'
Posted on Sep 17, 2012 in Mortgage Market Updates and News
In a recent Canadian Mortgage Professional Magazine article, it was discussed that many bank road reps or 'mobile mortgage specialists' are now advertising themselves as Mortgage Brokers. The article quotes an anonymous Road Rep saying he does it 'make it easier for the client to understand what he does'. I have a real problem with this. I think it's misleading, confusing to the clients, and actually an illegal use of the term broker.
If you work for the bank, are paid by the bank, and sell the bank's products, you are not a broker. To imply to clients that you are is wrong. The term Mortgage Broker implies that you have multiple lenders available and that you will shop around and find the best product for your client. If you work for the bank, you're looking out for the bank's best interest and not your client's.
Now I don't mean to bash Mobile Mortgage Specialists or Bank Road Reps at all here, I think there's definitely a place for them within the industry and I know in the communities I work in we have some excellent Road Reps who are very good at their jobs. But they're road reps.. Not brokers. A mobile mortgage specialist is a bank rep that is available to come to you, and runs their own business.
A mortgage broker works with a variety of lenders and is able to shop around to multiple lenders to obtain the best rate and product for their client. A mortgage broker must have either a Mortgage Broker's license, or a Sub-Mortgage Broker's license, and bank reps do not need to be licensed. Mortgage brokers are trained on multiple lenders products, while bank reps are typically just trained and able to offer their own banks products.
As I said before, both have a place in the market, but they are not interchangeable terms:)
-Sharie Marie Francoeur, Mortgage Professional (sub-broker) with TMG The Mortgage Group Canada Inc.