Live from the third-annual CMP Mortgage Summit in Toronto -- an event focused on upping the game of hundreds of Canadian brokers.
Video transcript below:
Reporter: Hi, I’m Justin Da Rosa. We are live at the Mortgage Summit in Toronto. This is the Big Story.
The Mortgage Summit brings together hundreds of brokers from across the country to discuss a wide array of topics. Some of those topics centre on the news that have made the day in the past month. We speak to some brokers about the issue of banks barring brokers from getting funding for clients who already have a profile within the branch.
Ranjit Dhillon, Principal Broker, Centum Mortgage Smart Inc.
Ranjit Dhillon: I have noticed the clients who have been rejected by the banks or they have opened up the file with the banks, specially one of the prime lenders we are dealing with and I had this experience with TD Bank. I would say the client should have an option to go to a broker and choose the product and as a broker we should have the right, to send the same deal to the same bank and they should look into it. The biggest reason is that now we are working fairly for the client and we need to make sure that he gets the right product. If the same bank has it and we have packaged it well, they should look into the deal.
Reporter: The CMHC recently cut two of its programs which has led many to wonder if this is one step toward eventually privatising the crown corporation. We spoke to a broker to see if this is a possibility and if it is, if it would have a negative or positive impact on the industry.
Shawn Allen, Principal Broker, Matrix Mortgage Global
Shawn Allen: I think the less government we have in our business the better. You know anytime there is a change in the industry, the gov CMHC is the first ones doing it, they are reducing amortisations and everyone is following suit. They are increasing rates and everyone is following suit. I think we need to get the government out of the industry and let the free market reign. And that way, we will have more competition and potentially fees and rates will come down. I think it’s very good.
Reporter: Jim Murphy recently wrote an article for the Globe and Mail describing the benefits of working with mortgage brokers and specifically those mortgage brokers who have the amp designation. Well some believe that he is doing a service to all mortgage brokers by drawing attention to the industry. Others believe it causes a division between those mortgage brokers who are amp designated and those who are not. Gord what are your thoughts?
Gord McCallum, President, First Foundation
Gord McCallum: Oh I actually think that’s Jim’s job. He heads the CAAMP, it is the Canadian Association of Accredited Mortgage Professionals. Their job is to promote the designation of the, promote professionalism in the industry. So if they feel like the amp designation is the best way to do that then I don’t see any issue with Jim promoting it and encouraging consumers to seek out an AMP and then also encouraging brokers to become an AMP.
Reporter: So there you have it, brokers giving their opinion on three news stories that made headlines this month, live at the Mortgage Summit in Toronto. I’m Justin Da Rosa, thanks for watching.