Recently I have received info proposing that CAAMP (Canadian Association of Accredited Mortgage Professionals) is pushing the “transparency” envelope even further. The prospective changes would require brokers to disclose the exact amount of commission we receive from each deal, residential and commercial. It has caused a bit of a stir within my circle, not because we don’t want to share, but more because, why should we have to share? My job, is to walk my clients through the mortgage process from start to finish. I make it clear from the start, that my services are free to them and that the lender (whichever one we choose to use) pays me a commission to bring them great peeps, like themselves…. Clients are aware that my compensation is paid by the lender to save in overhead costs and IS NOT a fee for the borrower.
The idea poses a minor problem, this potential change has come about through FICOM, without adequate market research from brokers & consumers like you. It will cause confusion for the average mortgage shopper and potentially impede brokers from competing directly with bank employees , who by the way, wouldn’t have to disclose.
Now don’t get me wrong…. I like FICOM as much as the next mortgage broker. They hold brokers to a high standard, protect borrowers & generally are referred to as the “mortgage police” (all good things) Since I like market research just as much as the next guy, I’m asking…would it be attractive to YOU, to find a broker to do it for less, even though your not paying? Do you want to know/or do you care how much we make? I have no problem telling you, after all you tell me all your financial details on your mortgage application….
Should the door swing both ways?
