AFG responds to Connective criticisms

by Caroline Dann13 Sep 2012
AFG has hit back at criticisms from rival aggregator Connective, claiming that its financial results are more transparent and are a more valuable measure of mortgage industry performance.
 
Connective claimed loan settlement numbers were the only true indicator of performance for an aggregator, after AFG posted loan processing numbers of $3.07bn last week.
 
Connective principal Murray Lees said such measures "may sound impressive but they don’t translate into income in the pockets of the brokers.”
 
AFG's general Manager Mark Hewitt responded by saying while he agreed that "settlements pay the bills," his company's transparent approach made its figures far more valuable to the market.
 
"AFG is totally transparent, to the point we publish our audited financials on our website, something many of our competitors, notably Connective fail to do," he said.
 
"The purpose of the mortgage index is to provide a real time insight into trends in the Australian mortgage market. The best way to do his is by releasing our monthly lodgement results as close as possible to the end of the month," he said.
 
"We think the market values data provided by organisations who have their data audited by credible accounting firms and who post it on their sites to be scrutinised by others," he said.
 
Hewitt confirmed AFG's loan settlements reached $1.9bn last month. Connective, by comparison, claimed a $1.3bn settlement figure in the same period.
 
In response to Connective's statement which said that it had increased numbers in WA over the past year, Hewitt told Australian Broker that AFG's network was solid in the state.
 
"I am not aware of a single broker who has left AFG for Connective and not returned in the last 12 months, including in WA where we have just had a record month," he said.
 

 

COMMENTS

  • by Todd 13/09/2012 10:50:55 AM

    There you go, Casey is one? AFG is happy to analyse lodgements which look to only equate to a 66% settlement rate by the look of the numbers above. Maybe they should spend more resources on data, like on brokers who leave and do not come back.
    Look out AFG, Connective is on its way... only 6 months ago they were settling a Billion a month, now $1.3 bill... the next 12 months will be interesting!!!

    Todd

  • by Tom 13/09/2012 11:19:28 AM

    So Todd, all your deals settle at the same time as they are submitted do they?
    I wish I had your business !!

  • by Nufty Broker 13/09/2012 12:35:59 PM

    Would love to see AFGS audited accounts 5 years ago?