Do you think clawbacks are fair? If not, you’re not the only one.
“Lenders have forgotten that we are their customers,” Kiran Saldanha of The Finance Professionals told Australian Broker TV. “In the service chain, they have forgotten where the broker fits in.”
In this multimedia exclusive released on Friday, Saldanha said that 2012 had shown that the banks were starting to realise the importance of the broker’s role. “There is the distribution of the product, but more so the management of how that lender is perceived in the open market.”
He said changes in policy by St. George and NAB’s retirement of segmentation were examples.
Indeed, clawbacks have begun to bite, and brokers are said to be ‘once bitten, twice shy’. Saldanha says there are good reasons for this. “If someone had to sit down and look at what they had to do before their ASIC licence registration, one of the things was a risk assessment, and funny enough in this business the biggest risk is the way we earn our income,” he said.
Clare George of 1st Street Home Loans believes that the banks should look at their clawback criteria, and put more emphasis on the relationship with a broker, rather than just one deal.
“It would be great for the banks to look at a policy of where they think about a particular broker’s quality of loan book with them, and look at it on a bit of a case by case basis rather than an individual loan being refinanced or property being sold within the clawback period.”
For more on how to avoid commission clawbacks, see our video exclusive on Australian Broker TV.
Clawback research reveals reassuring results
Clawback extension fears rise as Murphy's Law bites