“I phoned ING and they said that they definitely were still issuing mortgages. What had changed is that they were no longer dealing with mortgage brokers.”

“Last week, I received a letter from a mortgage broker that I had used to secure a small mortgage from ING. She told me that ING would not be in the mortgage business any longer, so that she would be contacting me before the maturity date to find me a new lender. Very considerate. Today, I phoned ING and asked them about the situation. They said that mortgages were a huge part of their business and that they definitely were still issuing mortgages. What had changed is that they were no longer dealing with mortgage brokers. Surprise, surprise. The agent then proceeded to offer me an early renewal blended rate that was quite competitive.”
– from M, via e-mail, 28 Feb 2013

21 responses to ““I phoned ING and they said that they definitely were still issuing mortgages. What had changed is that they were no longer dealing with mortgage brokers.”

  1. Real Estate Tsunami

    No surprises here.
    The “agent” that you spoke to was a loans officer, an employee of the Bank.
    What happens is, that in busy times the banks use outside mortgage brokers. This is more cost efficient than hiring and training new loans officers.
    When lending is slow, such as now, they just cut out the mortgage brokers.
    Economics 101.

    • I think you are missing the point. The mortgage broker lied to their client about ING’s situation so that the mortgage broker could get another commission.

      • Real Estate Tsunami

        Not missing the point.
        The mortgage broker has already been cut off.
        I know from a mortgage broker friend of mine.

      • The mortgage broker has already been cut off by the ING but still has other banks to work with and lied to their client about ING dropping the mortgage business in hope to switch the client to another lender – desperate measures for the desperate times. The mortgage brokers are desperate – some of the first in line to loose their income on the RE crash.

  2. Hmmm… Here’s the AgencyCut…

    And here’s the ‘slightly’ truthier parody. ReadersChoice…

  3. Be careful with ING. My elderly father couldn’t recall his Pin# at ING when he called to move some funds. ING would not let him do anything with his money for a few years and his account was in lock down. Luckily he was not dependent upon those particular funds. The funds were released after his death by producing a death certificate and a lot of frustrating phone calls and communication. A problem that took a long time to clear up could have been fixed in a few minutes with a normal banking relationship. This was an older person, but he was a fairly practiced investor. I would recommend people deal with a live person and establish themselves with a local bank.

    • Well either things have changed or there’s more to this story (likely a confused senior), because I’ve lost my PIN several times with ING and its never taken more than a phone call and some security questions to resolve…

  4. Sounds like “tortious interference” to me….. ING should sue their a$$!!

    Disclaimer: I have very little assets on deposit with ING Direct ever since they dropped their interest rates to just this side of zero.

  5. I think the rationale behind the ING change is that margins are so tight in mortgage business that ING may not make enough money if they have to share the spread with a broker. And, internal audit may have discovered that broker-originated deals are more likely to be fraudulent in some way…which is another way of the broker taking a bigger part of the deal. A pox on both their houses.

    • This is is line with what I was discussing the other day. There is a subtle shift towards “quailty lending” that is now underway. Banks want to be more hands on with customers in assessing risk. Brokers do not genuinely represent the banks best interest at all times as they are intermediaries working on a commission, not corporate values.

  6. Real Estate Tsunami

    That’s the stupidity of people dealing with agents.
    Always deal with the source!

    • There was a time when those using brokers and finance companies were stygmatized as poor credit risks. That has changed over time as easy money became more readily available but we may be on the path returning to the days when those seeking second mortgages, consolidation loans and other credit repairing facilities become the primary domain of brokers once again. Everyone needs to keep in mind that every time a lender does a credit history on you it goes against your record. People may want to keep in mind that as we evolve towards tighter credit conditions that all those pings on your profile can add up in a negative way as far as the big players are concerned especially if those doing the checks are primarily involved in resolving problems with payments and debt loads.

  7. Sometimes you have no choice but to deal with these agents

  8. I think this is because ING was bought by BNS, and they wanted to centralize their broker business within BNS. Less to do with volume than ownership I think.

  9. the poster formerly known as anonymous

    On News 1130 this afternoon they had an interviewee on saying that many people who were qualified for a 500k mortgage last year may only qualify for 375k today. This greatly affects the location and finishings of the dwelling that you get to buy, apparently.

    • Or it means you get to remain a renter. You should rejoice.

      • Or nearly free money, no credit checks, interest only payments and 40 year amortizations……oh wait…….I think someone has already tried that once.

    • The solution is to make more loans at 375. Except on rare occasions, the money is going to get loaned.

    • Ralph Cramdown

      “This greatly affects the location and finishings of the dwelling that you get to buy, apparently.”

      It does in a market where there’s a lot of cash buyers. If your market is mostly people who need to finance most of the purchase price, then it greatly affects the amount a seller can get for his house.

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