Bank “mortgage specialist” tells lies about mortgage brokers
Below is the short version of a mortgage broker insider tsunami. A RBC mortgage specialist wrote and handed out a sheet of complete lies about how mortgage brokers work and what we do. She, and RBC, are in a very tight spot as we all knew that non-brokers spread lies as their only way to compete.
The best way to sum up what we really think is this reply taken from the internal comment board of the Canadian Mortgage Broker website:
ExRBC Mortgage Specialist on 19 Apr 2011 11:41 PM
Most so called RBC mortgage specialists have little in the way of any credit training, if any. They usually come from the ranks of side counter staff who are well known for their lack of knowledge. RBC Mortgage specialists have no ongoing training requirements unlike the AMP’s, and they certainly have no Ethical training.
There is an old saying in sales:”Only show what you know”. In this case (she) shows that she knows next to nothing about credit, her market or her competition.
She might as well have said: “If you want the best rate , go to a broker.”
I see this a great platform for mortgage professionals to have excellent conversations with clients and referral sources about the difference between us and the bank! There is no doubt about the advantages of using a broker, and I welcome this opportunity to talk about it!
RBC to brokers: We apologize
By Vernon Clement Jones | 19/04/2011 9:36:00 AM | 31 comments
With multiple statements, RBC moved 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 bank was offering the same message in the east, with Ian Colvin, RBC’s senior manager for communications in British Columbia, telling MortgageBrokerNews.ca Monday, “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.”
The crisis communication follows leak of a document written by an RBC mobile mortgage specialist in BC and trading in stereotypes about the broker channel. The flyer, in fact, purports to highlight the educational, philosophical and operational differences between brokers and bank-employed mortgage specialists. It 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 the bank and the author of the flyer were unsuccessful. RBC’s statements do not address what if any disciplinary steps against the mortgage specialist have been taken. Many brokers are now calling for formal censure.
“Let’s hope they do the right thing and remove this lady from their ranks,” wrote one broker commenting on the initial MortgageBrokerNews.ca article Monday.
Still, others are concerned her attitudes may reflect the long-standing corporate philosophy RBC — the only big bank in this country that has never used external brokers.
“We are almost grateful that this has been put in writing because this is stuff that has been verbalized for years,” veteran B.C. broker John Ribalkin, president of Verico Nova Fiuancial Services and a CAAMP Hall of Fame recipient. “I’ve never minded competition as long as all parties maintain a fair and equitable level. The marketplace does not need demeaning comments from one party to another.”