Here’s some snippets from day two of the CAAMP Mortgage Forum in Montreal.
Opening Ceremonies
- CAAMP’s new chairman, Joe Pinheiro, stated his two main priorities for the following year:
1. Creating more unity in the mortgage broker channel so the industry can communicate its value to consumers in an effective and coordinated manner
2. Enhancing the standards, marketing, and value behind the Accredited Mortgage Professional (AMP) designation
- CAAMP’s new Hall of Fame inductees were recognized. Congratulations to each of them!
- Pierre Martel, CHA
- Jan Rice, AMP
- Gary Siegle, AMP
Maritz Research Update
Maritz researcher and Managing Director, Robert Daniel, shared these stats from a recent Maritz survey:
- Only 33% of consumers have a good understanding of the value that mortgage brokers provide
- 52% of borrowers consult with just one mortgage professional. Daniel says this indicates that “it’s not all about price.”
- Brokers cite “fast approvals” as their top priority when choosing a lender. Commission was ranked #9. When lenders were asked, however, they expected brokers to rank commissions #1.
- 97% of consumers want after-sales contact from their mortgage professional, and most (56%) cite email as their preferred contact method. The optimal contact period is every 2-3 months. Any more frequent than that, and “it becomes spam.”
More coverage will follow on Tuesday, including key points from the international broker panel, Ben Tal, and Kevin O’Leary…
Robert McLister, CMT
Thanks for the updates Robert. Keep up the hard work please.
“Fast approvals” is like saying you want good service. Good service should be a given. It never ceases to amaze me how lenders expect a pat on the back for quick turnaround times. In other competitive businesses you either give fast service or your customers walk.
Still don’t get why fast approval is number one. When you send in a deal, 90% of the time you know it will be approved. What is more valuable is an underwriter that is accessible. Even more important is an efficient funding. Not sure about the rest of you but I don’t get paid until the deal funds. If someone is getting paid at approval stage let me know, I what to use that lender.
There are many times when you need fast approvals including purchases with conditions, short closings or when you’re competing with another bank/broker.
On the other hand, I wouldn’t say approval time is the MOST important thing. I agree with Jeff that prompt turnaround should be expected regardless.
Rate and product would definitely be higher on my list.
Everyone is different but this is what I look for in a lender [in this order].
1) Lowest possible rates
2) Good product selection
3) One-day approvals
4) One-day turnaround on documents
5) Fast same-day email response times (from underwriters, BDMs & fulfillment staff)
Few lenders meet all of this criteria consistently.
There are brokers out there who do a good enough job presenting a file to the lender in order to speed up review and approval, however, in my many years experience as a lender it does not happen often enough. Sorry partners, but if you want a fast tern around approval, efficient document review with good performance and overall easy and positive experience, well in this case you need to do quite a bit of work yourself. First of KYC and KYF, not only Know Your Client, but Know Your File. If you know your submission well, we will not be going back to you for clarifications, and will not delay the process of approval. And you will not need to keep going back to the client for the info.
I strongly believe that it will be easier for you brokers/agents to compete with Big Banks if more due diligence will be done on your part, making it easy and painless for Lender review and approval. I think times have changed where it was all about Sales, now it is going to be all about service. ONE STOP, get the info send it over, make sure it is all noted well, and you will all see how quickly lenders will turn around your business.
Only 33% of the public recognizes the value provided by mortgage brokers? Wow, I know this number is correct, but it shouldn’t be. I know a short time ago it was around 25% so it is certainly going in the right direction, we as brokers and agents need to really advocate our industry and educate everyone we know on the vast benefits of using a broker/agent over a bank.
Jeff
http://www.jeffreyaikman.ca
*the opinions expressed in this post are mine alone and do not necessarily represent the opinions of my company or colleagues