NAB Broker will pay 65 basis points up-front to all brokers from 1 January 2012, as part of a wholesale change to its broker channel segmentation strategy.
As part of a revamp of the bank's broker star rating system, the group has said that all brokers will be eligible for 65 basis points upfront commission from the beginning of next year.
All brokers will also now have access to features previously only available to '4 Star' brokers, including access to online valuations and 90+% LVRs.
General manager NAB broker distribution John Flavell said the the bank had decided to evolve its star ratings system because changes in the market meant the previous system had become outdated. He said the advent of NCCP and licensing had rendered the previous star system's education benchmarks obsolete, while most brokers were also hitting quality targets. Flavell said conversion rates for broker-originated loans were "the best ever", while arrears were at their lowest.
“While our Star Ratings system has served us and our broker partners very well, the introduction of NCCP legislation has effectively lifted the bar on these measures across the industry and now is a good time to seek feedback from our broker partners on how we can add to and evolve this offering.”
NAB Broker has flagged a series of workshops and focus groups with brokers and aggregators in coming months where it will seek feedback on its current proposition.
Flavell has confirmed that NAB Broker's ramped trail commission structure will remain unchanged.