A number of brokers operating under NAB's Advantedge group have approached Aussie Home Loans about a possible move across, according to founder John Symond.
In an interview in the Herald Sun Symond described NAB's purchase of the Challenger mortgage management business as "high-risk" because those brokers are free to move to rival platforms.
"Those brokers are now waiting around to see what NAB is going to offer them. It's a very high-risk strategy and we've had approaches from some of those brokers," he said.
According to the report, NAB is currently consulting with the 5,000 Advantedge brokers on new terms under which they will operate.
Symond believes many of these brokers will move across to other platforms offering bigger commissions and better service.
Aussie's and other aggregators' success in luring brokers across will depend heavily on whether these brokers can transfer their trail commissions across as well.
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Latest Comments
Total:
9
comment(s)
SteveL on
01 Feb 2010 11:32 AM
So, lets go from NAB owned aggregation to CBA Owned Aggregation. From the frying Pan into the fire!!! Perhaps brokers will wake up one day and chose an Independent Aggregator? Or even better look at how they can protect THEIR business........
AngelaF on
01 Feb 2010 02:22 PM
I completely agree with SteveL. We need to protect our industry and choosing an independent Aggregator is the best thing for everyone. I am stunned that more brokers are not proactive in this regard. We need to look after our own business as no bank or aggregator ever will. There are some good aggregators out there nowdays with good service, software and no golden handcuffs.
Advantege Broker on
01 Feb 2010 02:37 PM
My sentiments exactly. NAB to CBA? More commission at CBA owned Aussie? Good luck guys!
Interested Broker on
01 Feb 2010 02:48 PM
To AngelaF, who would you recommend as a good independant aggregator?
Bill C on
01 Feb 2010 03:09 PM
Agree SteveL & AngelaF, how can you not choose an independant aggregator...it just doesn''t make sense. NAB owned to CBA owned I can''t tell the difference, can you?
JamesGreen on
01 Feb 2010 05:52 PM
Dear Interested Broker,
I have seen most aggregators over the past 17 years in mortgages and I am still a fan of AFG.
At Oxygen we Sub-Aggregate through AFG and while you may be able to find a cheaper aggregator, you need to weigh up the difference versus the hours of servicing.
One thing I need to rely on is my aggregator managing over 2000 different referrals (per annum), from over 300 referrers (mostly Property Agents), residing in over 30 McGrath offices, being submitted by a team of 16 brokers. Add the 2 different commission models, for Self-Gen versus referred, and most aggregators would fall to pieces.
Yes it’s complicated and that’s why I would only trust AFG to manage it.
If you’re interested in receiving leads, plus getting paid a high commission rate for your Self-Gen business, give me a call at Oxygen 1300 855 699. Call us if you have a spare 5 mins. Can’t hurt!
Regards,
James Green
Stunned Broker on
01 Feb 2010 06:14 PM
We have been promised no changes, each of the three aggregator groups will remain unchanged as to their offers to Brokers!! All cart before the horse stuff here, every aggregator has queries from different brokers, testing them out? A bit of chest beating in article! You would be a fool to think the independent aggregators wouldn't sell out at the right price & sale would only take place if there was any value?? One large independent has already tried to sell up & there is another that would sell at the right price!!!Who under their charter is not for sale???
Anthony on
01 Feb 2010 07:12 PM
For all those that ''DONT'' understand how Aussie works, it is the customer who chooses the loan. Aussie is still 100% independent and CBA are merely an investor. They dont not have any say in the business operations. I have been a broker with Aussie for 9 years and to say that we are receiving more commission by writing to CBA is ridiculous. In fact most of my clients are with StGeorge. We are still under the same criteria as any other broker in the industry (ie. CBA minimum loan settlements). I wouldnt have been so successful without the Aussie brand and support. So I suggest you all do your homework before commenting in future.
Mathew on
02 Feb 2010 10:19 AM
How about this - why don''t the MFAA buy a commission platform and allow member to aggregate through the MFAA? We already pay a fee to the MFAA, they can lobby everyone directly on our behalf and there is no reason as to why they would not pay 100% of upfront and trail.
This would show the MFAA is 100% in support of brokers.