I do not financial prostitute my standards and ethics to appease the referral brigade that are accustomed to the lucrative kickbacks the mortgage broker industry pays.
I inspected property, provided property research, negotiated with real estate agents, and bid at auctions for the client, all complimentary services, saving the client a lot of money.
Whilst finalising the loan application, I had couple of questions on the information the client provided, and the client requested that I contact their, let’s call them, ‘service provider.’
The service provider’s response (via email) was, “An administration fee will apply (charged to the customer) for supplying information etc to brokers for loan purposes unless the loan is arranged by our firm.”
I replied, “Will your customer receive a greater value from you, as a result of you referring them to your preferred broker than the referral fee you receive? And will your preferred broker provide greater value than what I provide?”
The service provider’s response was, “You pay us a referral fee then.”
The client then seeks the same information directly from their service provider and got the same reply, “An administration fee will apply for supplying information etc to brokers for loan purposes unless the loan is arranged by our firm.”
Stay tune for more amazing tales from the dark side of the mortgage broker industry’s lucrative kickback schemes.