U.S. brokers have been blamed for much of the carnage—and the blame is appropriate in many cases. As a result, major U.S. banks, wholesalers, and thrifts, shut down their broker divisions, leaving brokers with drastically fewer choices to fund their loans.
Unfortunately, many honest and responsible U.S. brokers are now paying a severe price, thanks to the bad apples.
Jim Murphy, President of CAAMP, says “The U.S. provides a very important lesson for Canadian mortgage brokers.” It’s a saga that underscores the value of prudent regulation, licensing requirements, and education requirements–to name a few. Murphy says “Most, if not all, of these requirements (were) foreign to the U.S. broker market.”
Thankfully, Canadian brokers never followed the American’s lead. For that reason, Canadian mortgage brokers lead the world in professionalism and we have a fantastic opportunity to script our own future. But, may we never forget what can happen to an entire industry when individuals in that industry take shortcuts to make a buck.