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Flooding could affect trail incomes

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Australian Broker | 18 Jan 2011, 04:45 AM Agree 0
With banks expected to experience mortgage portfolio pain as a result of Queensland's floods, declining recovery rates could trickle down to brokers
  • Chris | 18 Jan 2011, 12:43 PM Agree 0
    If Bank approves a moratorium on loan repayments ie. customers don't just take it and payments are not made, then this loan is within terms of arrangement (the Banks are offering this) and should be considered as such. Banks are not making any loans interest free. They are still charging the full interest, therefore whilst they are receiving full income, brokers trails in reality, should not be effected.
  • Chris | 18 Jan 2011, 12:49 PM Agree 0
    NB:
    If Banks deal directly with the customer and allow top ups with nil estab fees, the Broker could miss out on trails here because the bank instigated the top up and processed it. Go forward is that the Brokers whole loan trail may cease. Brokers should contact all known flood effected customers and present that request to bank first. That way, when we are told that the customer must call the hot line themselves, we can show Bank that we initiated the transaction and may be able to keep our trail as a result.
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