This week’s Star Letter is:
Mortgage adviser? Mortgage broker? The market view – Marketwatch
Mortgage consultant is the term I’m happiest with. I see this as an advisory role to clients, but also my role is to provide information to the mortgage lender. I am ‘consulting’ with both parties and sitting in between them both in the hope that a mutually agreeable position is reached. To simply say I’m offering advice to the client is no longer enough, my role is to provide information to both parties and therefore I feel I am a consulting on ‘the mortgage’ as a whole.
Also in this role I feel it is fair to expect to be remunerated by both parties for the work I do for each. As we know a vast proportion of our earnings are now spent on regulation, and this regulation requires that I act responsibly to both parties, therefore both should expect to remunerate me.
Commissions do not go far these days, especially when the principal company takes what they need to, to cover regulatory costs, the adviser then sees less and less of the commission coming to them. Yet in most cases the client fee is a direct demonstration of their faith in me to do a good job, (usually they have been referred by another satisfied client) so I therefore feel the lender should also be looking to promote and reward, my skills. I don’t agree with enhanced proc. fees for repeated business as this promotes a biased advice culture.
However I would like to see successful and proven advisers rewarded for their faith and commitment to their clients and the lenders. Quite how we do this i’m not sure, however I am sure that this is (as always) an ever changing market place that is fun to be a part of, and I look forward to seeing how things evolve in the future.
SOX
