Mortgage Brokers are compensated through a finders fee by the lender based on the mortgage amount, so the mortgage borrower is not charged anything upfront and brokers are only get paid when the mortgage goes through. Mortgage Brokers can get better mortgage rates through this process and that means saving for the borrower. Sounds like a great deal for the borrower, and is a win win situation for the mortgage broker if the consumer follows through with the mortgage loan with the mortgage broker, but what happens when if the mortgage borrower decides to switch and go with another bank or broker before the mortgage loan process is completed? This has been a long standing issue for most mortgage brokers and talk about Loyalty agreements are starting to resurface, some mortgage brokers and brokerages already have clients sign a Loyalty or Exclusivity agreement. In an article, Broker considers loyalty agreement to stop client hemorrhaging, published in Mortgage Broker News suggests that an organization like CAAMP create some type of mechanism to reimburse brokers who do all the legwork but see none of the money. We will keep you informed of any further developments and if you want to listen to more of the conversation, watch the Canadian Mortgage Hangout Oct. 10th, Discusses 2013 Broker Loyalty Agreements.