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Volume hurdles “completely wrong,” says FBAA

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Miklos Bolza | 28 Apr 2017, 08:25 AM Agree 0
The FBAA has raised concerns at a Senate inquiry about lenders linking broker accreditation to a set number of loans written
  • Brado | 28 Apr 2017, 09:04 AM Agree 0
    right on Peter!!!
  • Tana | 28 Apr 2017, 11:12 AM Agree 0
    Well done! how about claw back clause? 2- year is just too long
  • David | 28 Apr 2017, 11:39 AM Agree 0
    Where is MFAA on this????

    This is why I am switching to FBAA.

    I don't have an issue with broker elite clubs getting priority service. As a lending advisor, the time it takes to get approval is part of the decision making process.

    However, priority service shouldn't be based on dollars or number of deals submitted.

    I believe it should be based on the quality of the applications submitted.

    If a broker is continually sending in applications that are entered correctly into the software, quality notes, comprehensive and clear supporting document files, that are indexed correctly, with upfront vals completed they should receive priority processing
    • Marty McDonald | 28 Apr 2017, 03:04 PM Agree 0
      "If a broker is continually sending in applications that are entered correctly into the software, quality notes, comprehensive and clear supporting document files, that are indexed correctly, with upfront vals completed they should receive priority processing"

      Yeah but they currently cant process anything but the simplest applications without error so what chance they incorporate this fairly. zero.

      Also how does the lender judge your quality of submission if you've only sent 1 deal to them in them last few years? Most active brokers are doing what 3 or 4 loans a month so I don't know what the answer is here but what I do know is that if I need an approval quickly, being Diamond or Platinum or whatever is a really good outcome for my client.
  • Patrick McMenamin | 28 Apr 2017, 12:56 PM Agree 0
    Bravo FBAA and about time!! It is so obvious that minimum volume hurdles create a conflict of interest for a broker that it amazes me that ASIC have not even stumbled upon this let alone properly considered it. Personally, I simply do not hold accreditation with lenders who impose volume hurdles or charge fees for accreditation or renewal of accreditation and this is set out in my Credit Guide along with an explanation which in effect states that I do not deal with lenders who are in my view as a Credit Licensee "non-compliant" with both the letter and the spirit of the law.
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