I recently read an article about trust in real estate. There were points in it I agreed with and those that I didn't. I can bring a lot of perspective to this as a Private Sale Professional and as a Mortgage Agent.
I have written many posts about agents and their incentive to work for themselves versus you, the client. To date I haven't delved too far into the mortgage agent relationship. Where I feel the article missus the mark in this relationship is in the regulatory body of the mortgage industry. You see in the real estate transaction, real estate agents are self regulated through CREA. The mortgage industry is regulated by FSCO, a government agency that also regulates more than just the mortgage industry. Here is a snipit from their website:
You see, we in the mortgage brokering business have a higher power to answer to. We don't just get to pick a mortgage to sell you based on what we get paid. We have a dual responsibility to both our clients and the lenders. To the clients we have to prove that what we offered them was in fact, the right product for them. If we have not done our due diligence we can be held accountable for it. We are also responsible to the lender to ensure that the person applying for the mortgage is who they say they are and that the information they provide is accurate. We are the first step in stopping mortgage fraud.FSCO's legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates.FSCO regulates the insurance sector; pension plans; loan and trust companies; credit unions and caisses populaires; the mortgage brokering sector; co-operative corporations in Ontario; and service providers who invoice auto insurers for statutory accident benefits claims. FSCO is accountable to the Minister of Finance.
Another area that the author missed the mark is where he said "it wasn't revealed until I signed the mortgage papers" in regards to the brokerage being paid by the lender. We are required to have a consent form signed by the client prior to doing any work for them and it clearly advises that we are paid by the lender. So either the author didn't read what he signed or he was working with someone that wasn't following proper protocol.
So yes at the end of the day the mortgage brokerage gets paid by the lender, but we are working for you, the borrower, to ensure you are treated fairly and to find you the best mortgage for you.
The best advice is to do your home work, interview your mortgage broker/agent, don't just look at rates.
Mike Shanks, PGPro
PropertyGuys.com
Franchise Operator
Cambridge and Guelph
Mortgage Agent Lic# M14001148
Brokerage # 12466
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