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Second tiers should band together: Foley

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Australian Broker | 27 Jul 2011, 04:15 AM Agree 0
Second tier banks should provide a united front to deliver consumers a compelling alternative to the four major banks, according to National Mortgage Brokers managing director Gerald Foley
  • melbbroker | 27 Jul 2011, 11:31 AM Agree 0
    Spot on!
  • Cuz | 27 Jul 2011, 12:42 PM Agree 0
    Exactly Gerald. Having dealt with many second tier lenders it is only human nature to cringe when you make a recommendation that you just know will be fraught with so many reasons for the deal to fall over when you know it will fit exactly with a major. Post codes, Valuation policy, Stability in employment, Mortgage Insurance and Credit Score.....Sometimes not even much of a reason at all to decline the deal that you have bent over backwards to outline why it should be approved......then only to submit with a major to have approved without question.
    Would love to have real alternatives although how many times to you get knocked back and look like an idiot to your client before you just take the smartest and easiest option that will save you all the grief. I fully appreciate this is only a short term solution and would love to support competition moving forward when they get it right.
  • Linda M | 27 Jul 2011, 12:58 PM Agree 0
    Second tiers should have been doing this years ago!
  • SteveMc | 27 Jul 2011, 02:03 PM Agree 0
    Excellent. He's looking for ways to win the consumer's trust in a broker, not just the broker's trust in a lender. Gerald makes very good sense, rather than arguing that brokers support the non-majors, simply to save the 2nd tier. Maybe he has the insight to realise that non banks have burned brokers, maybe even more than the banks, with their hit & run or sell out style in the past. May confidence be restored!
  • Daniel Son | 27 Jul 2011, 03:12 PM Agree 0
    Yes the second teir lenders need to be able to provide finance for applicants other than long term salaried employees who wish to borrow 80% or less. If you like getting frustrated for 6 long weeks send them your next self employed application.
  • DRyder | 27 Jul 2011, 07:32 PM Agree 0
    This is the most sensible, constructictive and consumer focussed comment I have heard on this very important subject. What a fantastic idea that actually proposes a WIN WIN WIN solution to the problem of the rapid evapouration of Competition within our industry. WIN for the Lender, WIN for the Broker and most importantly, WIN for the the CONSUMER!
    Gerald Foley, please get this idea off the ground...



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