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

'Antagonism' by lenders can be cured by competition

Notify me of new replies via email
Australian Broker | 03 Jun 2014, 08:38 AM Agree 0
Worried about clawbacks, cancelled accreditations or various other measures imposed on brokers by lenders? Increased lender competition could put such measures to rest
  • Darren | 03 Jun 2014, 09:21 AM Agree 0
    To provide quality service, brokers need to focus on their customers. With all of the articles and industry talk about what brokers might loose, how will this industry ever be able to focus on what is really important - the customer. Thank you MFAA for providing some focus towards reassuring brokers instead of rattling them.
  • Dave Robinson | 03 Jun 2014, 09:29 AM Agree 0
    While Mr Naylor's comments are correct to a degree I think he runs the risk of being seen to take the easy way out here. Compare this to the FBAA approach which is while we can't do anything in relation to commercial agreements we will bring it up with lenders every chance we get, the MFAA wants to put the onus on "more competition".
  • Bottom Line | 03 Jun 2014, 10:42 AM Agree 0
    Like running around the fire saying you have a big hose - but neglecting to say you don't have any water.

    Avoid the clawback issue, by saying maybe something else might help - hasn't yet.
  • Broker | 03 Jun 2014, 10:51 AM Agree 0
    The lack of real and effective leadership (resulting in a voice from Brokers) within this industry is the real issue here.

    How exactly do Aggregators benefit the industry and its Brokers, and collectively what exactly do Aggregators achieve?

    Same goes for the MFAA and FBAA.

    Sadly the answer is next to nothing , as given that most are owned by the banks there is an obvious conflict of interest – and our lot will probably erode further over time.
  • John from Geelong | 03 Jun 2014, 10:55 AM Agree 0
    God forbid our aggregators should act in our interests.
  • Steve Sampson | 04 Jun 2014, 08:33 AM Agree 0
    I agree wholeheartedly Phil, there is however an opportunity in these times when the members of our associations fail to see the relevance, to at least act as a mediator or a go between to assist their members on these disputes.
    I think that the members would appreciate that in some form.
  • Maria Rigoni | 04 Jun 2014, 04:32 PM Agree 0
    I fail to see how competition will do anything to enhance conditions for brokers in the current legal environment.
    I am sure that the profit margin for a lot of existing loan business is much higher than for new on book borrowing.
    If I recall correctly one of the reasons for the 40% pay cut that was forced onto brokers was due to lender competition and their alleged "decreased" margins.
    Not only did lenders decrease commissions they increased clawback periods because they knew that the 'hot' interest rate environment would encourage refinancing and is too easy to make the broker wear the cost.
    Introducing brokers do not make money for lenders they introduce potential buyers of credit and finance products and therefore the the big and well established lenders have no care or conscious to the survival of the industry.
    Free the introducer broker from clawback and accreditation handcuffs and you will see real competition emerge that will benefit borrowers.
    This is not likely to happen because the big players set the remuneration across the whole industry and dictate who can or cannot hold an accreditation.
    Our laws currently allow brokers to be treated the way they are. We need to elect politicians that not only understand what is happening but are prepared to challenge current practices.
  • Tim H | 09 Jun 2014, 04:44 PM Agree 0
    Maria's comments are spot on and indicate clearly what many have been saying for some time that the MFAA and in particular Mr Naylor have not got a clue what is happening in our industry.
    Increasing competition within lenders will only lead to more cost cutting on their part and as has been highlighted by Maria (and not Mr Naylor) is that it will again be the brokers who lose out.
Post a reply