MFAA forum: Lenders pledge better service

By Larry Schlesinger | 29 Apr 2009

Lenders and aggregators have agreed to work together to improve overall service levels, following yesterday's MFAA-sponsored forum.

The forum, which took place behind close doors in Sydney, resulted in a number of agreements being reached between the two parties.

"As partners in the loan distribution chain", the MFAA reported that lenders had agreed to "continue to do all possible to ensure demand levels are being met by upgraded resources in loan processing and that there is comparability in service levels between broker and proprietary channels" and to "provide clear communications as to the service levels and provide updates where those levels change"

It was also agreed that while current circumstances may require lenders to amend credit policies quickly, they would provide the industry with as much notice as possible of such changes.

Lenders will provide broker groups with detailed data as to re-work and error rates.

On their part, broker groups said they would institute training to remedy re-work issues and error rates and will ensure brokers are provided with adequate information (based on data from lenders) to ensure borrowers are not given unrealistic expectations about loan approvals

Both agreed they have a "mutual interest in ensuring high quality service to their customers, and are aware of the need to protect their respective brands".
 
Representatives of the 22 broker groups, mortgage managers and lenders (both bank and non-bank) who took part in the roundtable committed themselves to the "mutual support of each other".

Following the meeting it was agreed that further roundtables should be convened "utilising MFAA's unique broker and intermediary representation" with a further meeting to take place in 3 months time to review the impact of the understandings reached yesterday.

 

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Commented by: Broker at 29 Apr 2009 04:51 PM Report this comment
Wow, don't we all feel soooo much better now. Me thinks the majors only "plan" is to hope the FHOG boost finishes on June 30, other than that , do nothing and continue to shaft Brokers as we continue the "valued business partners" dribble
Commented by: Tom at 29 Apr 2009 09:32 PM Report this comment
Lenders need to have a good look at their own error rates and seek feedback from brokers how they can improve their service. For one thing they could stop asking for the same information 3 times. What's the point of insisting on electronic submissions only to follow up with having to provide the same information all over again by fax. They all have broker websites but provide us with little information on the state of the file. It's no wonder why we have to ring them so many times. They seem to forget where the files is at until you ring and complain that nothing is happening. If they need further information then tell us everything required there and then. Not ask for one thing and then wait another week to decide that something else is required...not rocket science.
Commented by: tc at 30 Apr 2009 09:08 AM Report this comment
Looks like a waste of a day to me. No real changes implemented. I'm very quickly losing my passion for this industry.
Commented by: OzBoy at 30 Apr 2009 10:53 AM Report this comment
At least this is start, the only thing I can see wrong is that it will be another 90 days before they meet again. I believe the situation is at the stage that a review should be done in 30 days not 90. Fingers crossed that all parties approached this with the right attitude and that we are all collectively moving forward.
Commented by: Papery at 30 Apr 2009 02:10 PM Report this comment
Seems to me like a meeting was held for the sake of a meeting.... lets all appear to be do something & then maybe the dumb brokers will start feeling warm & fuzzy again.
Commented by: Simple Solution at 30 Apr 2009 03:09 PM Report this comment
Why don't brokers take the actions into their own hands and place the deals with funders who are offering excellent service and turn around. If you keep sending deals to a business that continues providing crap service they will continue to do so as there is no real incentive to improve!!! The MFAA meeting was never going to achieve anything and I am not surprised by the information contained in the "communique" they have issued.
Commented by: Simple Solutions at 30 Apr 2009 03:13 PM Report this comment
and I don't see it as the MFAA's responsibility to work with, encourage or demand that a business improves it service if they are receiving 95% of the volume. It comes down to each and every member or person involved in the industry taking on some responsibility themselves to ensure the consumer is looked after. If you look after 1 a 1000 will follow.
Commented by: Chris at 30 Apr 2009 03:18 PM Report this comment
Well I will sleep better tonight. Knowing that my business and clients will receive such great service.
Thankfully I have stopped using the majors. Brokers need to wake up.
Commented by: MFAA ? - who at 30 Apr 2009 03:39 PM Report this comment
Ifwe read the MFAA's advices issued today about what went om, at te forum ,one can only start to wonder how relevant they are. Brokers need to be educated - garbage!!! the majors and minors need to get better qualified staff on who can read a payslip and understand what is in front of them, stop asking for the same information two to three times, and stopr losing up to 3 sets of legal documents.
Brokers WAKE UP there are alternatives , start using them , their rates are good and service is one hell of a lot better
Commented by: Anne Marie at 30 Apr 2009 04:36 PM Report this comment
Oh Please - give us some credit - another talk fest with no real results - fact - its been months of totally unacceptable service - fact - nothing has changed - fact - nothing will change - fact - brokers will continue to do more work for less money - fact - the banks will continue to provide bad service and less money.
OHHHHHH......I will get back to the phone and fax and send through outstanding docs again for the 3rd time........
Commented by: SCOOTER at 30 Apr 2009 05:15 PM Report this comment
WHAT LENDERS ARE YOU USING. SEEMS LIKE YOU MIGHT BE ONTO SOMETHING THAT MAY BRING ABOUT CHANGE POSSIBLY.
Commented by: Rebecca at 01 May 2009 12:15 PM Report this comment
The major frustration i have is a lack of ownership from anyone involved in the banking industry. When the banks make errors, rather than be proactive and do whatever they can to go forward, they do nothing. Back in my day of being a bank employee, my customer and the level of service I provided was everything.Not so the banks anymore.
Commented by: Hardcore at 02 May 2009 05:57 PM Report this comment
STOP GOUGING EVERYONE MAJORS!! The majors have LIMITED FUNDS TO LEND so why pay a broker for the deal when they can do it in house and RETAIN THE COMMISSION FOR THIER OWN PROFITS. All this tak about SERVICE LEVELS is a SMOKE SCREEN to DISTRACT us all from THE TRUTH !!!
Commented by: Care Factor at 02 May 2009 06:00 PM Report this comment
THAT'S A FACT! Th rest is just waffle designed to keep everyone distracted. And the MFAA are a JOKE!
Commented by: Concerned Broker at 02 May 2009 08:08 PM Report this comment
It's no wonder some lenders have a poor view of brokers when you read the crap some of you pedal. Stop whinging and being so negative and start acting like Mortgage Broking Professionals
Commented by: Positive Broker at 03 May 2009 09:14 AM Report this comment
Hey guys, agree with the sentiment but let's start being constructive. How do think you will look if one of your customers is reading these forums (and believe me they do). We need to act professionally and offer well thought out constructive comments. I'm with you concerned broker. A whingefest isn't helping anyone. Sure there are issues with the MFAA, Turnaround Times, Commission Structures etc. but having a huge whinge on here only makes us look just as bad.
Commented by: sue-banker at 03 May 2009 06:15 PM Report this comment
I work for a major bank in their broker division & we have just employed over 100 new staff, but you can't employ "trained" staff, you have to train then first, put them into production, & time is the only provider or knowledge & confidence. Alot of our new staff are young school leavers who are happy to work nights, so we can have a 18 hour business day. They learn on the job, because as you as Broker's would know, no 2 deals are the same. They all have their own little anomolies.We (the processors) do make mistakes, get things wrong; we also have to follow bank policy & deal with ever faulting technologie. 90% of us try to do the right thing, we are all someones Mum, Sister, Brother, Daughter, Son.... remember that when you are screaming you head off @ us and using foul language. We are all working towards the same goal. Getting the keys to the customer.!!! Help us to Help you!!!
Commented by: brizbroker at 04 May 2009 01:55 PM Report this comment
It is no surprise the forum provided no real outcome. There is nothing any of us could have told the banks that they weren't acutely aware of already. If you expected a "magical" cure or result from the forum, you are foolish and misguided. Let it go. Come back to the CORE question. What are WE/YOU/ALL OF US going to do about getting better service for our customers? Our role is to provide recommendations to our customers about the most suitable home loans for their needs, agreed? That involves recommending loans/lenders who provide competitive products, rates, and service, during both the application stage and post settlement, agreed? The major banks do not do this, agreed? So explain to me why 90plus % of deals are STILL going to the majors you all moan about daily, when they do not meet these criteria? Explain to me why lenders who offer superior or competitive products, superior or competitive rates and very much superior service are not receiving industry /aggregator or broker support? It's always been within YOUR power, and MY power as the brokers who introduce loans to lenders, to influence whether or not they receive those levels of volume. If you keep sending all your business there and putting your customers in a position where they are missing out on properties or settling late and incurring penalty interest, you are doing your customers a disservice. So why do you do it so much? We are a service industry, and we should be going where the service is. Thats the magical solution, right there!!!! Right now its not what is happening. Explain it to me, please!

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