How can I trust a broker when...
Hi, brokers.
[Mods: Hopefully this one doesn't cause you to swing the Ban Hammer. LOL. If so, that'd be a shame, but before you start winding up, please hear me out]
There was a question on this sub a couple of months ago along the lines of "C'mon, for real now... do you always recommend the best option to the client?" I can't find that post now, but I seem to recall some brokers weighing in, saying the consequences of doing so (in the event of an audit) just aren't worth it.
I have no doubt that's true.
The thing is, though, there have always been penalties in place in the financial services industry for all kinds of malfeasance; ain't stopped people doing it anyway. Seems some people (not just in financial services, either) are willing to take the risk of being fined or having their licence revoked or whatever the case may be if... maybe... someday... possibly... they might get audited... if they're unlucky.
So how can I know if a broker is actually being honest with me when the incentives are so clearly misaligned?
For the record, lest you think I'm some kind of raging socialist, I'm not. Nor do I have any automatic dislike of salespeople. Really. I've worked with superb salespeople who listen and ask questions to determine whether they can help a prospect... and then, if so, how best to do that. Sometimes, they even say "I can't help you". This is what all the best salespeople do the world over.
Sadly, I've also seen too many people taken advantage of when the informational imbalance tips disproportionately in the salesperson's favour. That is, when a prospect knows there's a lot they don't know and because of this seeks the advice and guidance of a professional. Unscrupulous salespeople seem to approach this situation like the wolf in those old Looney Tunes cartoons, drooling while mentally sharpening a carving knife.
So I suppose what I'm asking is:
- In the case of working with a mortgage broker, what are some things I can do to increase the likelihood of finding someone who's in it for the win-win?
I'm no spring chicken so I reckon I can get a read on the ones with the ick-factor or who are all crocodile smiles. That's not the issue. What I'd love is some tips for being able to see through the BS of the salespeople in this arena who talk the talk, but actually don't give a shit about me. I can do it in other arenas, but I have close to zero experience dealing with mortgage brokers so what should I look out for? What should I ask? See... I don't even really know how to pose my bloody question!