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Broker begs APRA to be more specific

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Julia Corderoy | 30 Sep 2015, 08:00 AM Agree 0
A top broker has a stern word for APRA, saying the banking regulator is making the market “absolutely impossible” for a broker to keep up with changing lending policies
  • Ben | 30 Sep 2015, 09:09 AM Agree 0
    I understand the ambiguous nature of this, and agree with that sentiment. But I disagree it's impossible to keep up with all of the different rates. This is our job. We assess the client and then supply the solutions to best fit the circumstance. You make it too easy and people go do it for themselves.
    I'm in favour of consumer confusion in this space as it adds to our value add proposition.
  • Regional Broker | 30 Sep 2015, 09:10 AM Agree 0
    Our aggregator has been excellent in keeping us informed and spread sheeting the changes, any changes are up in our on line systems the next day.
  • Brado | 30 Sep 2015, 09:17 AM Agree 0
    That's why I use my aggregator software... I don't need to know every single interest rate available, all I have to do is search for the specific loan and LVR and the software provides me answers... It's really easy actually...
  • john | 30 Sep 2015, 09:26 AM Agree 0
    I have a different opinion all the changes are making the market impossible for borrowers to navigate alone.

    We are the most televant we have been provably ever.

    Thanks APRA for the boost to my business.
  • Papery | 30 Sep 2015, 09:45 AM Agree 0
    You can never keep abreast of every single change. The space we work in is fluid & changes all the time. You just need to know which lenders are going to have policies that suit your client the best & importantly know each lenders niche areas when it comes to the really peculiar deals. Minor variations in interest rates are the least of our worries! And of course knowing how to source info when you need it.
  • Steve McClure | 30 Sep 2015, 10:21 AM Agree 0
    I agree entirely with Stephen Dinte. When BDM's aren't receiving clear & complete information from their employers, it impacts the explicit service we can provide. Sure, good brokers overcome that, but the general uncertainty caused by APRA is detrimental to the bigger picture.

    For this reason, I somewhat disagree with the concept that confusion and disadvantage of borrowers is good for the broking industry. We want a vibrant, healthy market rather than being clouded in uncertainty.
  • Incognito | 30 Sep 2015, 10:55 AM Agree 0
    The 10% handbrake was to reign in systemic risk.

    *A more complex solution could have been tried - or they could have addressed the freebies that distort the demand side, but they didn't.

    We brokers hold a mind picture of the landscape and we tweak it every day.

    We gossip over coffee on who gave what where then we get it for our clients.

    It's challenging and almost fun : -)
  • Dave Robinson | 30 Sep 2015, 11:28 AM Agree 0
    All good comments however I would warn against relying solely on your software. If the BDM's and lenders don't know their policies I am not sure how a 3rd party would know them. Combination of software and written communications will help.
  • John | 30 Sep 2015, 11:49 AM Agree 0
    What I have found disturbing is that the lenders have not really informed the customer, why?

    Being an investor myself, all I received was a letter saying: due to market conditions.

    Can anyone tell me were the 10% came from and why it is 10%?
  • Broker | 30 Sep 2015, 01:47 PM Agree 0
    Imagine being a new to industry Broker and attempting to decipher these existing polices.

    As a Broker with 13 years in this game our product and policy knowledge is being rewarded big time these days - the opportunities within your own client base are endless.
  • Bottom Line... | 30 Sep 2015, 02:08 PM Agree 0
    The reality is that APRA thought investment loans only applied to buying investment properties.

    They didn't realise that investment loans can be for any type of investment. It is also in some small part now affecting the share market negatively as well.

    There's a reason governments etc in the past have kept out of it, and let the market find its own level & natural solutions, like it always has.

    Now they have moved into dangerous territory, by insisting on trying to manipulate a market that's more complex than they realised.
  • Papery | 30 Sep 2015, 04:42 PM Agree 0
    There hasn't been a dull moment in the finance landscape since the GFC went through... Like a dose of salts! It's been interesting & challenging & I've been loving every moment from watching the politicians, lending bodies, ASIC, APRA, RBA, even the share market & the media talking heads all squirming. Cant say it's boring, that's for sure! : )
  • Matt | 30 Sep 2015, 06:25 PM Agree 0
    Can't wait for the next round of changes coming!!
  • IFBF member, OZL | 01 Oct 2015, 07:55 AM Agree 0
    No one has mentioned the issue of the off-the-plan issues that were approved under old guidelines - a major concern for a lot of brokers.

    Also, doesn't the introduction of more restrictive guidelines give an advantage to the haves?

    Also, since when has a 10% asset class risk factor been a major concern for proper risk analysis when assessing different asset classes to invest in?

    I've never understood the need for increasing capital adequacy by lenders when they are protected by one of the safest asset classes in the world - I don't recall this being justified!
  • Tim H | 01 Oct 2015, 10:24 AM Agree 0
    I've always said as long as something is happening with interest rates whether that be rising or falling then it is a good time to be a broker.

    With all these changes we are the go to people for consumers and this is showing in the increased share of loans written by brokers.

    I agree that the new guidelines put in by APRA are unclear and creating confusion but to those brokers complaining about this think of the alternative. A flat market with no policy changes and no reason for borrowers to look for better deals I don't want to see.
  • IFBF member, OZL | 05 Oct 2015, 09:13 AM Agree 0
    No one has mentioned the issue of the off-the-plan issues that were approved under old guidelines - a major concern for a lot of brokers.

    Also, doesn't the introduction of more restrictive guidelines give an advantage to the haves?

    Also, since when has a 10% asset class risk factor been a major concern for proper risk analysis when assessing different asset classes to invest in?

    I've never understood the need for increasing capital adequacy by lenders when they are protected by one of the safest asset classes in the world - I don't recall this being justified!
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