We see a steady stream of emails from rate shoppers who quote us a rate but have no idea who the lender is.
Oftentimes, it’s because a broker quoted them the rate but didn’t mention the lender.
In some cases, clients ask who the lender is, but the broker dances around the question.
If that happens to you, run–do not walk–to another mortgage planner. Hundreds of thousands of dollars may hinge on a broker’s advice. Brokers who aren’t up-front about every key detail shouldn’t get the business.
Now, to be fair, a mortgage professional may be hesitant to name specific lenders if he's unsure that you’ll qualify. More often than not, however, reluctance to divulge lender names (when asked), is a defensive mechanism–used by brokers who are scared of losing you to that lender, or to another broker.
That said, you’ll find that most professional mortgage planners are very focused on relationships, confident in their abilities, and concerned about your interests. Quoting lender names with rates is, therefore, not an issue in the vast majority of cases.
Last modified: April 28, 2014
Not sure who floated this trial balloon since the article is unsigned.
In the article it says that brokers should name their best rate lender when asked.
Wondering what is the source of this proposition and is the author willing to survey the brokers?
Perhaps the survey should also include the other key details about which it is felt brokers should be upfront?
Hi TS,
No trial balloon. :) Just an observation. Feel free to call or email me to discuss your ideas.
Rob
Any self-respecting mortgage agent would not want to commit to anything without seeing where the client stands first. They don’t like to promise something that they may not be able to deliver. The truth is the agent often knows nothing about the client, especially if you are a first time client, and borrowers shouldn’t expect to be provided specific information of any kind without the agent having some understanding of their circumstances. I don’t need someone to come back and tell me “you promised me this, you told me that”.
Hi Lior, Thanks for the note. Point taken. The gist was simply that, if an agent does quote a rate, they should quote the lender–especially if asked by the client. It’s a very natural question because folks want to know who the counterparty is to their deal. Of course, the normal disclaimers always apply (OAC, etc.) and planners should always explain the basis of approval, so naming lenders should rarely be an issue.
Cheers,
Rob
Rob
Interesting post. I see this frequently myself. People who hold back information aren’t doing themselves or clients any favours.
By the way I do enjoy how you tackle the taboo topics in the industry. Always makes for thought provoking reading.
Lior, Why can’t you tell the client the lender with a disclaimer – like OAC or something?