Macquarie Bank has responded to criticism of its return to the market by highlighting the positive responses it has received to its newest mortgage product.
The announcement on Monday that Macquarie is finalising distribution agreements with a number of broker groups for a new product, the Macquarie Bank Mortgage Solution, has drawn criticism from a number of brokers following events during the financial crisis.
One broker, Kelly Cameron-Tull of Get Real Finance, told Broker News she would not refer any business to Macquarie after a client incurred extra costs of around $10,000 in exit fees and establishment costs elsewhere after Macquarie's decision to wind down its mortgage arm in early 2008 scuppered a deal.
Cameron-Tull, who featured as one of MPA's Top 100 brokers last year, also questioned the bank's commitment to the broker channel, and accused Macquarie of making "business decisions that suits itself, without any concern for the implications of others".
Macquarie executive director Frank Ganis admitted the bank had had to make difficult decisions during the financial crisis, but maintains that it did not completely abandon the market.
"Due to the unprecedented market conditions, we made the difficult decision to wind back our operations, but we continued to service our portfolio and maintained cornerstone relationships," Ganis said. "Since then, we've taken our time in order to understand needs and expectations in a deliberate, cautious and careful way. We've worked with strategic distributors and intermediaries to create a product that will appeal to those end customers who want to use their mortgages to generate future wealth."
Ganis said the group began testing the product from the middle of last year and has "had very positive feedback". "We now have the confidence and support to expand distribution."
When asked how Macquarie could win back the trust of brokers that may have been hurt by its actions during the financial crisis, Ganis replied it wasn't for him to convince people to recommend Macquarie's products. He did reiterate, however, that the bank's new product had been tested in conjunction with numerous intermediaries, including brokers, and that Macquarie had very positive feedback and demand from the market.
"We're an organisation that believes all actions we take should have the highest quality support and provide the highest quality customer service. That's the way we look to earn trust and respect," Ganis said. "We had that for many many years, and our aim is for the business to operate to highest standards and integrity levels. To that end, we will work in conjunction with intermediaries to ensure we do get it right."
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Latest Comments
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comment(s)
Tony on
16 Jul 2010 11:04 AM
Tell that to the clients who paid the get out costs and paid interest at dramatically increased costs so that executives could pat themselves on the back for surviving the GFC and then pay each other a bonus. Nothing wrong with getting paid for what you do if you do it well. Macquarie certainly did not.
David on
16 Jul 2010 11:26 AM
Sorry fairweather friends. I will only deal with Lenders that are here for the bad times, not just the good times.
ozy broker on
16 Jul 2010 11:47 AM
As far as i''m concerned Macquarie are still gone from the Broker market no matter what product they come up with, as they went to the trouble of contacting their customers which are my clients and asked them to change products in house without contacting me the broker. Lucky for me the clients where loyal, unlike Macquarie Bank.
Dumb founded on
16 Jul 2010 11:53 AM
Well look who is back, it''s the prodigal son! Sqander people''s money, run away when to going gets tough and return to gain acceptance. With the appalling way Macquarie has treated thousands of our clients.. i encourage everyone to avoid there current offering. Who knows how long they will be around this time ??
Larry on
16 Jul 2010 11:58 AM
If Macquarie wants to prove it cares about customers and is serious about coming back to the market let them refund the exit fees to all custmers who had to refinance due to the bank existing the mortgage space and publish the fact that it has and then I would consider using them again.
Ken Bruns LoanPlanners SA on
16 Jul 2010 03:39 PM
Don''t we all love the moral high ground!!
Well as far as I can see there are some real villains in this industry and Macquarie is not one of them. If they come back in well and good....welcome!
I''m sure you all at Macquarrie are far too smart to let this mixed response put you off. I for one am much happier with the thought that you want to come back than that you would stay out.
Wayne Hutchinson on
16 Jul 2010 04:02 PM
What if the world ecconomy does double dip, will this fair weather lender pull the pin on brokers and clients again?
Dave on
16 Jul 2010 04:14 PM
"We''re an organisation that believes all actions we take should have the highest quality support and provide the highest quality customer service. That''s the way we look to earn trust and respect," Ganis said. "We had that for many many years, and our aim is for the business to operate to highest standards and integrity levels. To that end, we will work in conjunction with intermediaries to ensure we do get it right." CRAP. I hope they are paying you well because it sounds like your not going to get any traction with any broker who has been around longer than a couple of years. It''s good to see so many brokers taking back some control, if we continue to do this in numbers lenders WILL take notice. Keep up the good work while my keeps spinning from the spin above. Don''t you just love it when the Executive Director treats us like idiots...mmmm that will win us back.
Peter on
17 Jul 2010 07:19 AM
I have to agree with David. I will support the lenders that supported us through the hard times as they are the ones that allowed me to continue to feed my family. You hear a lot of negative feedback re the majors like westpac and cba but they have been there through thick and thin and have taken on loans that many lenders would not alowing us brokers to grow and serive out clients.
SteveOz on
17 Jul 2010 09:07 AM
Gee wiz guys, we accept Westpacs wavering committment to the broker channel over the years and increasing their rates which over time make Mac exit fees look like loose change.(Great mvie by the way - loose change) And lets be honest, if your business was going to lose millions due to economic conditions what would you do? At least they gave a little lead time, not like RAMS who just burnt everyone! TWICE! Best part is some decent service may just come back into our industry......THAT will be worth the trouble!
Positive Broker on
17 Jul 2010 03:45 PM
Never Never Never. There are plenty on other lenders who battened down the hatches during the GFC but they didn''t screw the borrowers (our clients). Now is the time to really support the lenders who need and support brokers. I''m talking the likes of ING, ABL, AMP, Firstmac etc. Not the majors with the possible exception of ANZ.