Brokers are crediting MortgageBrokerNews.ca with "encouraging” a B.C. credit union to honour the renewal fee pledge of a retired program.
Brokers are crediting MortgageBrokerNews.ca with "encouraging” a B.C. credit union to honour the renewal fee pledge of a retired program.
“Thanks for the help and as a result of your story and our communication it looks as though they are going to honour these renewal fees,” wrote Michael Sjerven, broker at Vivid Mortgage, Tuesday.
MortgageBrokerNews was also forwarded an email from Northern Savings Credit Union, dated the same day.
That communication offers a mea culpa and a promise to make good on a pledge that up until now appeared to have been deferred indefinitely.
“Northern Savings Credit Union discontinued its broker renewal annuity program on January 1, 2011,” writes the lender’s management team. “Regretfully, when this change was implemented there was no formal notification to brokers, other than removal of the references to the annuity program on our rate sheets.
“Northern Savings will work with those impacted to facilitate payment of program fees upon satisfaction that all regulatory requirements have been met.”
The letter also confirms what MortgageBrokerNews reported earlier this month, referencing a number of brokers who are actively seeking to be paid under the terms of an annuity program on deals that have come up and been renewed after that 2011 cutoff date.
A Vancouver broker who sent several deals to the CU before the program expired told MortgageBrokerNews.ca earlier this month that he received at least one renewal under the plan and was surprised to hear about the cancellation. With another client’s mortgage approaching renewal, he reached out to a BDM at Northern Savings for clarification.
“I was told that I wouldn’t be getting renewal fees on that deal even though it closed when the program was still in effect,” the brokerage head, a big supporter of lenders with trailer fees, told MortgageBrokerNews.ca, speaking on condition of anonymity. “Though I understand why they wanted to discontinue the payments, I believe they are still obligated to pay renewals on deals submitted under the program.”
At the time, Ken Doleman, president of Northern Savings Credit Union, promised to address the concern and those of other brokers willing to come forward. They since have.
“We ask that you advise the brokers in your office to contact Northern Savings by email if they were impacted by the changes to our annuity program,” reads the Tuesday email. “A separate high priority email address has been set up with a designated staff member to assist the brokers. The email address is: [email protected]”
