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The cost of blind faith in a bank

April 23, 2013

 

I came across this article this morning and thought it may be a good one to share. For all of you who ask the question Banker vs Broker what's the difference?, this article may be of interest to you.

The article was taken from Mortgage Broker News

 The Cost of Blind Faith in a Bank

By:Donald Horne

The case of an ill woman coming close to losing her home because of a bank oversight has highlighted the value-add of brokers over branch representatives, argue channel veterans.
 
“I am not sure what the process is for the banks,” says Anthony Contento, president and CEO of Mortgage Architects, Sherwood Mortgage Group.  “However, if it were a mortgage agent who was helping this woman with the finance, I am almost certain the woman would have been alerted and understood her contract. When you deal with a mortgage broker, you are dealing with a professional, and a true consultant in mortgage financing.”
 
It was only when Dorothy Jean of Welland, Ont., was near the end of her rope that she appealed to the Toronto Star, having grown weary of the back and forth between her mortgage lender, Caisse Populaire Welland, its parent company Desjardins and her doctor, who was handling her disability claim. It was at this point that a Realtor checked her paperwork, and informed Jean that she had paid for disability insurance to cover her $2,400 mortgage payments in the event of illness.
 
It’s something her bank rep. appears to have overlooked. In fact, according to the Toronto Star “On Your Side article,” the 62-year-old Jean had been checking with her bank for the last five years, and “every time I went in, not one person said, ‘Dorothy, do you have insurance with us?’”
 
Ultimately, her Realtor’s discovery resulted in a refund from the bank in the amount of $23,729, and peace of mind in knowing Jean no longer had to find $2,400 a month in mortgage payments to remain in her home.
 
 

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