When Those in the Know Don't Know

Our product knowledge was recently put to the test in a comparison we did on Smith Manoeuvre mortgages.

In cases where we didn't know the answer to a product question we did what mortgage brokers do and contacted the lender's Business Development Manager (BDM).

BDM's are basically salespeople to brokers.  They educate brokers on a lender's products and try to get that broker "on board."

Well, our view of BDM's has now changed.  Not all are created equal.

Accuracy was naturally our prime objective, so we had each lender recheck our data table.  Lender reps were asked to "sign off" on their respective product information.  We thought we were good to go.

Wrong.  As some of our helpful readers noted, a few errors went unnoticed.  In some cases, some of the information provided by BDM's and bank managers was totally off base.  It makes you wonder if some BDM's, especially new ones, spend much time studying their own mortgage products. (Note:  I say "some" because many BDM's are truly exceptional.)

The point is, if a lender's own rep doesn't know their product, who in God's name should?

The underwriters.  That's who.

More and more, they seem to be the most reliable people in the chain of command.  They're the real technical detail experts in many cases.  And they, are who we'll consult on our next mortgage comparison.

Comments

[homes]

One things for sure, not everyone doing there duty.

[Ann]

I totaly agree Melanie. At some lenders BDM's will tell you almost anything to free up their time. /Ann

[Mr. Cheap]

Great table and info, thanks for putting that together. I assume ALL of these charge a higher interest rate for the re-advanceable portion (do any of them let you keep the same interet rate for the investment part of the debt as the main mortgage?)

[Michael]

Over the years we've had countless client's upset with us for passing along bad info that we received from a BDM. The worst part is that the client doesn't care where you got the information. You just look like the bad guy and thats it. Our approach now is to first look at the lender's written product info and then confirm from an underwriter.

[Western Broker]

There's bad apples in every barrel of underwriters too. But they do know more than most Business Development Managers I know.

[Canadian Mortgage]

Hi Mr. Cheap, No. Lenders don't give you the same low interest rate on the line of credit (LOC) portion. You'll usually pay prime rate on the LOC. In some cases you may be able to get a minor discount but not much.