Opinion: When Competition Crosses a Line in Mortgage Brokering
Every so often, a situation arises that reminds us of the darker side of mortgage brokering. Most of the time, competition is healthy, but sometimes it crosses a line, not legally, but ethically.
A recent deal we lost raised serious concerns about how far some brokers will go to push others out of the way, even using veiled threats of regulatory complaints.
This story isn’t about winning or losing. It’s about what happens when industry professionals start exploiting policy quirks and trust gaps to gain an edge.
We were working with a client on a 3-year fixed conventional mortgage and secured an approval with a major bank at 3.
The author concludes that the issue is not about needing new rules, but rather about the broker community taking responsibility for their actions.
Author's summary: Brokers must police themselves to prevent unethical competition.
- Competition in mortgage brokering can be unhealthy when it crosses ethical lines.
- Some brokers may use veiled threats to gain an edge.
- The broker community must take responsibility for their actions.