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YBR hits back at another damning report about brokers

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Julia Corderoy | 07 Jun 2016, 08:00 AM Agree 0
Major mortgage and wealth franchise YBR has dismissed another condemning report about mortgage brokers in the mainstream media
  • Bill | 07 Jun 2016, 08:49 AM Agree 0
    Who's holding the journos to account?

    If we looked at the fraud committed with loans in volume and consequence, I think we'd find the broker channel has a better record than the banks own sales channels. The People that are committing fraud are more likely to come from the banks because they know how to manipulate the system.
  • shan | 07 Jun 2016, 08:58 AM Agree 0
    They always target the planner or broker rather than the bank entities/ licencees themselves. CBA has been in the middle of all the major scandals and what was the result?

    The industry brings up the education and compliance bench mark costing everyone as it is a lot cheaper than taking on a major bank. Were there many margin calls from CFS when Storm Financial was falling? The advice given is as good as the compliance monitored and carried out by the licencee.
  • Patrick | 07 Jun 2016, 09:17 AM Agree 0
    I have been in the industry 20 years and I rarely recommend the major 4. They might have a cost advantage but it shows up in their profits not in their lending rates. Most importantly, the bigger they are the poorer the service.

    Then there are the FEES, the majors have fees for everything. Account keeping fees, fees for every minor amendment to your loan structure, a fee to renew a fixed rate and for some a fee to let you pay interest in advance.

    I use multi-account structures to ensure that debt is both tax efficient and that interest rate risk is well managed. Do this with a fee charging monster and the effective cost is uncompetitive.
  • Paul | 07 Jun 2016, 09:18 AM Agree 0
    All journalists should have to disclose their affiliations and leanings. This scribbler was probably writing something that he/she had been induced to write by either a free lunch, football tickets or some connection to a party interested in damaging brokers and financial planners.
  • John | 07 Jun 2016, 09:54 AM Agree 0
    In order to be a financial planner or mortgage broker you need to be accredited, have a minimum standard of professional development every year and be in a register with ASIC to name a few. What is the minimum regulatory requirement to be a journalist?
  • Broker | 07 Jun 2016, 10:33 AM Agree 0
    It was just another example of lazy and very poorly researched journalism that was wrong on so many levels. It just demonstrated that she was out of her depth when it comes to understanding this industry.

    I would like to see Karina Barrymore explain how banning commissions would benefit consumers and result in better outcomes, she would struggle to put a sensible paragraph together.
  • BJ | 07 Jun 2016, 02:42 PM Agree 0
    Well, here we go again, shoot the messenger.
    I did not read the piece as a kicking fest on brokers or an accusation of fraud. Rather it was an issue surrounding the payment of commissions and “if” commissions influenced the decision or otherwise to recommend one lender over another. Sure headline grabbing, do you think anything different.
    Tim Brown is quite correct in that little, if any evidence has been produced to demonstrate that loans originated at broker level result in higher default rates, however, as an industry writing an increasing level of new business (other than direct with a bank) it follows that this statement “higher default rates” could be stating the bleeding obvious.
    It appears to me that as this industry continues to gain greater market share, it will obviously come under significantly more scrutiny. For my part, this is not necessarily a bad position, for if the industry is, as it claims, holding high standards, then the professional broker and their client will be the net beneficiary of the same
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