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Major targets third party in investment lending crackdown

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Miklos Bolza | 16 Feb 2017, 08:00 AM Agree 0
New information has come to light regarding the major bank’s recent tightening of investment lending
  • Broker | 16 Feb 2017, 08:39 AM Agree 0
    "While the notice appeared to apply to all refinance investor loans, the major bank has now told Australian Broker that these changes apply solely to intermediary-sourced loans. Borrowers will still be able to access refinance investor loans via CBA’s retail branches."

    Well I guess that is one tactic to reduce Broker market share, how many more are around the corner ?

    Brokers need to wake up and stop sending deals to CBA and the likes that treat us with contempt.
  • Broker 2 | 16 Feb 2017, 09:15 AM Agree 0
    Here here to the comment above. This is not the only way that CBA disadvantage the broker network so lets boycott them.
  • Hoodat | 16 Feb 2017, 09:21 AM Agree 0
    I wonder if this applies to their Aussie subsidiary as well? We only use CBA when desperate or the customer insists
    • Oscar | 16 Feb 2017, 03:46 PM Agree 0
      It very well does. I'm an Aussie broker and we too are stopped. But I'm surprised at this latest article. What tha ?!?! In any case, we have alternatives and CBA is not the most competitive at this stage so it won't matter.
  • Martin | 16 Feb 2017, 09:26 AM Agree 0
    Based on CBA strategic ignorance....I suggest no loans go through CBA as this is blatant 3rd party channel conflict. That's the beauty of having 30 other lenders that can provide an equal or better solution. It's not easy to turn around a sinking ship. Incredible narrow foresight.
  • Not surprised | 16 Feb 2017, 09:30 AM Agree 0
    I don't think there is another business in Australia that would show such contempt for a supplier group that provides nearly half of its business.
  • | 16 Feb 2017, 09:34 AM Agree 0
    And what is my aggregator doing to support me? Probably nothing!
  • #OneLessReferrer | 16 Feb 2017, 09:34 AM Agree 0
    Third Party Announcement to CBA and CBA Shareholders:
    The Broker channel is said to represent anywhere from 45% to 65% of your current mortgage settlements which would represent a significant chunk of that $4.9b profit announcement. Save your investment loans to your own home loan managers BUT NOW YOU "CAN" also keep ALL your Residential, Commercial and Leasing products for your own too! Because as a third Party Channel "WE CAN" exercise options too!
    COMMBANK: BROKERS ARE THE ONES THAT "PROVIDE CONSUMERS FREEDOM TO BANK HOW THEY WANT, WHEN THEY WANT."
    You have regulatory issues - then what is good for one SHOULD BE GOOD FOR ALL.
  • Country Broker | 16 Feb 2017, 09:54 AM Agree 0
    Ok so the CBA are saying they support the Broker Chanel and they do this , obvious they are not supportive of the broker channel .

    The other lenders will be very happy to see this .Why Brokers continue to support the CBA is beyond me.
  • Aydn O'Neill | 16 Feb 2017, 11:03 AM Agree 0
    It's unfortunate that CBA has had to go down this road, but understandable given the prudential guidelines and ratios required to keep the powers that be happy. I don't think it is fair to say the CBA are treating Brokers or the Third Party channel with contempt, but as Brokers we need to be mindful of how much business is going to our panel lenders and particularly the big 4. It needs to be a balanced approach to alleviate what we are seeing now with CBA pulling on the handbrake. Take care all.
  • Adelaide Broker | 16 Feb 2017, 11:31 AM Agree 0
    I suggest Brokers review all their clients with CBA loans and look to refinance elsewhere. The increase in the CBA Investment HL rate should make this something we should do anyway.
  • ABroker | 16 Feb 2017, 11:50 AM Agree 0
    Whilst we're all on the subject of responsible lending practice, in discussion with a client recently they advised me that they had recently discussed their borrowing capacity for an investment property direct with their major bank (whom shall remain unnamed ). Their banker advised the client that "to make it work we'll just estimate your living expenses at $3,000 ok?" or words to that effect (they are a household of 2 adults and 1 child with a combined household income of >$200k), to which the client replied "if you say so". My point here is that I certainly hope the regulators radar is also fixed on the banks and their employee representatives themselves. After all, the banks are continually reading the rule book to us brokers on responsible lending and in particular, living expenses (for which increasingly brokers are now required to provide a detailed breakdown). Sure, there are rats in our industry - which has been proven.......but their are also many rats in the banking sector - which has also been proven. There are rats in all levels of industry. The vast majority of brokers are qualified ethical professionals and in many cases we have a great deal more experience and knowledge than the bank representatives we are subjected to dealing with. Thanks for reading my rant :)
  • Sydney Broker | 16 Feb 2017, 06:02 PM Agree 0
    CBA is the worst to deal with anyway. Their broker turnaround time has always been ridiculously long, compared to the branch deal turnaround of 1 business day. Another time I used CBA serviceability to calculate client's borrowing capacity ($400,000) and then they go to the branch and got $700,000 settled. I have always been avoiding to send deals to CBA because they make me look like an idiot in front of my clients. I don't understand why we as brokers should give them any business, unless the internal living area is <50sqm.
  • Pamela | 16 Feb 2017, 11:43 PM Agree 0
    This is truly appalling!
  • Frustrated | 17 Feb 2017, 05:02 AM Agree 0
    The contempt for the third party channel is shown due to the policy only affecting the third party channel, a customer can still walk into a retail branch and its business as usual. What's next different interest rates for brokers vs branches, different pricing. If we do not address this and show CBA this is not ok, by affecting their bottom line, this will be the first of many changes that will affect our hip pocket.
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