Weekend wrap: Industry bodies slam damning AFR report

by AB05 Mar 2016
Making broker news this week, the MFAA and the FBAA have defended brokers over a damning AFR report; bank launches industry-first electronic home loan delivery service; broker market share continues to climb.

Industry associations have slammed the Australian Financial Review after it published a report questioning the ethics of mortgage brokers.

The report is the second damning article published by the AFR and claimed an investigation into ‘Uncovering the big Aussie short’ did a "positive service" to the country. 

“It is very disappointing to see personal opinion pieces, which are not supported by evidence and directly admonish a profession being published by a reputable publication,” MFAA chief executive Siobhan Hayden said.

“The MFAA has a strong working relationship with ASIC and is working closely with the industry regulator on the Inquiry into Broker Remuneration. The scope for the inquiry is publicly available to the Australian Financial Review.”

St. George bank launched an e-Delivery service for home loans this week, cutting turnaround time down for brokers. 

Finalised loan documents will now be sent electronically, rather than through the post.

“The main savings in time are through not having to post documents.  On average, we think that will save about four days in turnaround time,” St. George general manager of mortgage broking Clive Kirkpatrick told Australian Broker.

“What that means is not only can we now get an answer to brokers quicker through the improvements in our back office but we also have the documents prepared and out to the broker for the customer to sign at least four days earlier.  It is a massive benefit to ensure that the customer is off the market.”

Mortgage brokers settled 51.8 per cent of all new residential home loans in 2015, up from 50.4 per cent the previous year, new MFAA data has revealed.

“When we compare the results for 2014 with the results for 2015, it can be seen that mortgage brokers continue to grow as an industry profession in the Australian residential market year on year,” MFAA CEO Siobhan Hayden said.

The rising traction is good news for brokers, Hayden saying that the increase means mortgage seekers are choosing a broker over heading to a traditional bank.