BROKER BEWARE While funding may still be flowing and lenders may be active, many brokers have been spooked by the NCCP. By nature, non-conforming loans are a riskier venture. They cater to borrowers without squeaky-clean credit, and the spectre of unsuitability can tend to hang over brokers in such situations. Glen Gillespie of Better Mortgage Management concedes that brokers may be nervous about dealing with non-conforming clients. Some, he says, also found themselves and their customers burnt by some of the “excessive” exit fees charged by specialist lenders prior to the government’s ban. But Gillespie says brokers are working through the “hangover” caused by the onset of NCCP, and many are losing their fear of the nonconforming market.
“If a broker is just a rate seller, they’re going to be hesitant to sell the products, because they’re not the sharpest rates” – BARRIE GAUBERT, IDEN
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