One big bank’s ongoing solicitation of real estate agents for referrals is frustrating brokers, who see it as a ploy to move mortgage business into the branch.
An email from National Bank promising commissions for Realtors who bring referrals directly to a branch will likely upset its broker partners.
“From the standpoint of supporting someone and then finding out that they’re going over your head or trying to cut into your business it just doesn’t make sense,” Mark Fidgett of Verico NotaPennyDown told MortgageBrokerNews.ca. “I hope as an industry we can respond as a group because one-offs just don’t do it; they won’t care.”
Fidgett received an email from a Realtor referral source that was sent from a National Bank mortgage development manager to Realtors soliciting direct referrals.
That National Bank employee refused to comment on the referral program.
“I can’t speak on behalf of the bank,” Helen Prasad, mortgage development manager for National Bank told MortgageBrokerNews.ca. “The information you received was for Realtors that were in some way in my database through business or through other means but to find out any more details you’d have to contact National Bank; as you know at a bank we are not at liberty to talk about bank policies unless it’s with our contacts.”
The original email, obtained by MortgageBrokerNews.ca contained information on how the referral system works:
• Meeting is set with the client at the location of their choice
• The client’s file is processed quickly, Realtor is advised of status
• The file is followed up until the funds are disbursed
• Referral Commission is sent to the real estate office after closing
This isn’t the first time such offers have been circulated to real estate agents, and brokers will likely see this as a snub from the lender, which relies on brokers for a great deal of its mortgage originations.
“I don’t like it and I don’t think any brokers will,” Fidgett said. “I think it’s going to drive a lot of brokers to really think about who they are supporting.”
Calls to a National Bank rep were not returned.
“From the standpoint of supporting someone and then finding out that they’re going over your head or trying to cut into your business it just doesn’t make sense,” Mark Fidgett of Verico NotaPennyDown told MortgageBrokerNews.ca. “I hope as an industry we can respond as a group because one-offs just don’t do it; they won’t care.”
Fidgett received an email from a Realtor referral source that was sent from a National Bank mortgage development manager to Realtors soliciting direct referrals.
That National Bank employee refused to comment on the referral program.
“I can’t speak on behalf of the bank,” Helen Prasad, mortgage development manager for National Bank told MortgageBrokerNews.ca. “The information you received was for Realtors that were in some way in my database through business or through other means but to find out any more details you’d have to contact National Bank; as you know at a bank we are not at liberty to talk about bank policies unless it’s with our contacts.”
The original email, obtained by MortgageBrokerNews.ca contained information on how the referral system works:
• Meeting is set with the client at the location of their choice
• The client’s file is processed quickly, Realtor is advised of status
• The file is followed up until the funds are disbursed
• Referral Commission is sent to the real estate office after closing
This isn’t the first time such offers have been circulated to real estate agents, and brokers will likely see this as a snub from the lender, which relies on brokers for a great deal of its mortgage originations.
“I don’t like it and I don’t think any brokers will,” Fidgett said. “I think it’s going to drive a lot of brokers to really think about who they are supporting.”
Calls to a National Bank rep were not returned.
