CUA makes return to broker business

by Ben Abbott28 Feb 2012

CUA has re-embraced brokers after a post-GFC hiatus, and will now lend via Mortgage Choice and Smartline.

As previously reported by Australian Broker, CUA said it had been looking to return to broker distribution for some time, but that market volatility in the recent past had delayed the leap.

However, group general manager Darrin Northey said the move was necessary due to broker market power.

"Given around one in four homebuyers seek out a home loan via a broker, CUA’s re-entry into the network means we will be expanding the reach of our products to a greater potential audience," he said.

Prior to the GFC, CUA distributed between 30-35% of its home loans via brokers.

General manager of strategy and marketing, Andrew Hadley, previously told Australian Broker that with 40% of the market dominated by brokers, CUA was playing in a "smaller pond" without them.

Related stories:

'Volatility' delays CUA broker return

CUA forsees broker channel return

COMMENTS

  • by PeterT 28/02/2012 12:01:26 PM

    The thing that concerns me about CUA is that they'll follow the same pattern in the future. When times are good, they want broker business becuase they're missing out. When times get a bit rough, they ditch the broker channel as fast as possible.
    What most lenders don't understand is that the broker is their customer as much as the borrower is. They need to show us some loyalty and support if they expect to receive it as well.