Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

'Aggregation lost its way', says association head

Notify me of new replies via email
Australian Broker | 30 Apr 2014, 08:27 AM Agree 0
Aggregators have lost their way by not supporting brokers who have had their accreditation cancelled without reason, believes professional association head
  • Barney | 30 Apr 2014, 09:19 AM Agree 0
    maybe the associations should help more as well!
    Memberships are made up of brokers though of course we cant get the Banks offside since they pay to advertise in the journals and for conference booths at the annual soiree~!
  • Country Broker | 30 Apr 2014, 09:19 AM Agree 0
    The Comment is spot on as is the comment from AFG yesterday the aggregators MUST back the broker until they at least determine what the problem was .
    This situation shows that the aggregators who are 100% owned by a bank have a possible conflict of interest, if the broker who has had their accreditation withdrawn by a bank is the same bank who owns the aggregator !
  • David Tansek | 30 Apr 2014, 10:27 AM Agree 0
    Aggregators have lost their way loooong ago by accepting CBA and Westpac to dictate "broker'
    s personal volume"! By the way, that is against UCCC and ASIC rules principle also!
    Other lenders may have "better products", so clients are short changed!???
    Aggregators do not want to look at this, because it is their biggest money earners, just like government TAX, when petrol goes up!
  • JB | 30 Apr 2014, 10:37 AM Agree 0
    Had my accreditation cancelled by a particular Bank on the grounds of insuff. volume. "Can"cellation came 2 days after they accepted a new home loan application from me. Needless to say, BDM unwilling to assist & desired I re sit & pay for new accreditation session. After 10 years of writing their loans -Yeah right. Client stuck in middle without good service, forced to churn them. Noticed said Bank's share of broker market starting to slip, no surprise and the policy instigator has left the Bank. Suspect volume requirements will become a thing of the past within next 12 months or so.
  • Dave Robinson | 30 Apr 2014, 11:00 AM Agree 0
    And don't forget BankWest will drop you if you don't provide enough loans although this is never mentioned and they don't tell you until you go to lodge your next deal.

    I wonder if it was as simple as a personality clash. No surely it couldn't be, could it?

    If the banks don't have to justify their decisions then the above maybe closer to the truth than you realise.

    Let's watch this closely and see what the outcome is.

    PS: Great comments Mr White, follow this up with action and the FBAA will become even more relevant.
  • Papery | 30 Apr 2014, 11:36 AM Agree 0
    I heard the same thing happen to others..incl a Broker who had several matters lodged/approved to the Bank & in progress for existing clients including a discharge & security substitution, a loan switch & a new loan submission which was between conditional & unconditional approval...Only found out that the Brokers Accreditation had been unilaterallty & uncerrimoniously cancelled by the Bank when they were blocked from the Broker site.... I wonder how many other Brokers went thru this & I also wonder if this was a parting edict from Kath just so that she could make sure we Brokers really know who the boss is.

    Wouldnt it be nice to hear the new CAN-King of Third Party Broker services stand up & give some assurances that no Broker would have accreditation withdrawn without prior opportunity to address the situation. Im pretty sure any Broker worth their salt can make an argument to protect accreditation.

    Its tough enough already without a major Lender spitting the dummy & deciding they dont want to play fair & share their toys anymore.

    Also smacks of the Bullying.
  • Concerned Broker | 30 Apr 2014, 03:12 PM Agree 0
    From what is known around the traps the broker in the earlier article had his accreditation withdrawn due to the Lender NAB investigating his X wife. She was writing business for NAB/Advantage from 2006. The broker had been divorced from this woman since 2006 and has Broker never written any business to NAB/Advantage prior to 2011.The Broker in the article only commenced as a Broker in 2011. The broker obtain accreditation in 2011 with NAB. You would have thought if their was an issue, the NAB would have not issued the Accreditation to the Broker in 2011. But NAB accredited the Broker in 2011 and received business from the broker. It has been verbally said that the Brokers accreditation was withdrawn because of the association with the X-Wife. Guilty by Association. However the broker has not received anything in writing from the NAB stating this is the reason for the withdrawal of the accreditation. The broker's aggregator's response to the request for copy of transmission from NAB was for the broker to obtain a Court Order to get the information and the information was withheld due to lender/aggregator confidentiality. A lesson here is that you have to be also careful who you do business seems from the Lenders point that it does not matter if you are innocent but if you have had dealings with another person who the Bank has determined to be questionable, then you come under the radar as well. The other matter that has been forgotten, is that the point of the earlier article highlights the looseness of contracts that the aggregators sign up with the lenders...only to leave the Broker exposed to loosing his credibility and livelihood.
  • Joe Broker | 01 May 2014, 10:13 AM Agree 0
    If "Aggregation was originally brought in around the mid-nineties so brokers could, under a collective banner, meet the lender’s volume desires ...." then why is this being allowed to happen?
    Banks? aggregators? Industry bodies? hello, anybody there...??
  • Monty of Perth | 01 May 2014, 10:57 AM Agree 0
    Joe Broker: Absolutely spot on the money. Aggregation was in deed promoted to allow for Brokers who were not dealing with every lender each and every month.
    Now that most are owned by Banks the Aggregation firms ideals have certainly changed...
Post a reply