The other day I heard the following story about an adviser I know. I wanted to write about it to show that true customer service really exists, and that everyone wins when we put the client's best interests first.
A mortgage broker (I will call Broker A) had a large prospective client approach her looking for a $1.3-million mortgage. For any mortgage broker, this is a big deal that doesn't come around every day.
After reviewing the situation, and understanding the client's needs, Broker A said, "I can get the mortgage for you at Prime – 0.9 per cent."
As it turns out, the client had been dealing with another mortgage broker at the same time, and that broker (Broker B) submitted the application to the same lender. Broker B told the client they could get Prime – 0.75 per cent. The client told Broker B that Broker A had offered a better rate. The client then added that she also wanted a line of credit. Broker B said, "I will get you Prime – 0.9 per cent on the mortgage, and Prime + 0.5 per cent on a line of credit for another $150,000."
Broker A mentioned that based on her knowledge of the rates with this lender (which is the same one Broker B was using), Broker B could not possibly offer a line of credit at Prime + 0.5 per cent and advised that the rate with this lender for the line of credit is Prime + 1 per cent. She strongly suggested that the client verify the numbers before moving forward.
Since the house closing was approaching, the client moved forward with Broker B because she could get a better line of credit rate. As it got to the final seven days, the client was told by Broker B that there was a misunderstanding on the line of credit. In fact, the rate was going to be Prime + 1 per cent.
The client was very upset. She had been warned this would happen, and despite being promised otherwise, Broker B failed to deliver the line of credit rate promised. At that point, the client called Broker A and apologized for not listening, and now wanted Broker A to arrange her mortgage because she trusted her more.
At that point, Broker A called the lender, reviewed the situation, the timing that was needed to get a new appraisal, new paperwork, the lawyer's availability, etc. She realized that at that late stage, timing would likely become an issue and cause unnecessary stress for the client. While the deal might have gone ahead without a problem, there was a decent chance of delay.
Broker A called the client, and said that she would love to do the deal for her, but because of the timing, couldn't guarantee everything would move ahead smoothly. She recommended the client stay with Broker B to ensure the mortgage would close on time.
The client was shocked to hear that Broker A turned down the deal, but was very appreciative. She couldn't believe that someone who had tried hard to get the deal, and was ultimately given the deal, would turn it down to help ensure the house closing went properly for the client.
There is a lot of good learning here for any adviser in any industry. While the client didn't end up using Broker A, she will definitely be using her the next time and will be telling this story to others, and likely referring people to Broker A.
There's a lesson here for customers as well: It isn't always easy to figure out in a short time frame who deserves your trust. One indication is how quickly an adviser pushes you to sign up for business. Advisers who take time to build trust and educate you before asking for your business are much more likely to take a career approach to relationships than those who push harder for the quicker sale.
For Broker A, this is a career she has been doing for more than 20 years, and her motto is that she doesn't do deals, she builds life-long relationships. The proof was in the pudding of this deal. She wanted to do the right thing for the client and believed that it would be better for her career to turn down the deal than to accept it.
Time will tell if this individual decision works out for Broker A, but for her, this is simply how she works. She focuses on getting a good deal for the client, earning less on some deals, losing some deals, but in the long run, building a professional advisory business.
Follow Ted Rechtshaffen on Twitter: @TriDelta1