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Mortgage brokers making banks 'very uncomfortable', says research head

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Australian Broker | 15 May 2014, 08:00 AM Agree 0
RP Data's Tim Lawless talks on how mortgage brokers can harness market potential, and flags something about brokers that will be making lenders uncomfortable
  • mac | 15 May 2014, 10:43 AM Agree 0
    Agree except for the costs bit. Many outsiders assume because lenders pay commissions we therefore must be more expensive but is that actually true? If they didn't have broker business and they wanted the same amount of settlements wouldn't they need twice as many staff. Think of all those add on costs. You could also imagine what would happen in boom and lean times if the lenders had to carry twice as many loan writing staff as well. Contestant fiddling with staffing numbers to reduce costs and then hiring to handle volume surges. All in all the broker channel is much more effective / easy for them to manage. With comms only paid on settled deals and claw backs its a no brainer for them. Except for loss of power of course.
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