Many advisors have long wanted to see higher professional standards and more rigorous accreditation processes in the sector, so there may be interest how professionals in another corner of the financial sector try to lobby for higher standards.
Mortgage brokers, who have dealt with the fallout created by inexperienced peers, are calling for stricter education requirements for incoming mortgage professionals, even as Ontario reviews its regulations.
“Untrained individuals are concerning,” David O’Gorman, president and principal broker at MortgageLand told sister publication Mortgage Broker News. “The five-day wonders, I call them, who do a course and think they know everything. I’ve had to clean up (some of their) dirt in the past; deals that have been messed up.”
O’Gorman points to a recent incident where an appraisal was botched, overvaluing a house and requiring a re-appraisal. The problem, according to some brokers, is the lack of formal education required to become a mortgage broker.
“They need to implement mandatory, continuous education at a high level,” O’Gorman said. “A six- to eight-week mortgage education that includes appraisals, underwriting, understanding building titles, understanding reports; it needs to be more formalized.”
It’s an opinion shared by many experienced brokers – players who have put in the time, climbing the ranks in an industry that now, more than ever, attracts newcomers looking to cash in.
“I’m concerned by the quality of brokers in general,” Robert Floris of Mortgage Architects said. “The ultimate goal should be to help clients but some view it as a way to make a quick buck.”
Floris has found himself fixing the work of inexperienced brokers as well. He’s had to do it six times this year alone, as a matter of fact. Recently, he was able to save a new client money by advising him to carry over a Canada Mortgage Housing Corp port – something the client’s original agent had failed to mention.
“He was downsizing and he could take (his mortgage) with him and all he had to do was port his mortgage (to avoid paying CMHC penalties),” he said.