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Aussie CEO responds to Royal Commission

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Rebecca Pike | 11 Feb 2019, 09:39 AM Agree 0
The group has warned changes to broker remuneration will hurt borrowers
  • A A A Home Loans Wide Bay | 11 Feb 2019, 09:52 AM Agree 0
    The best way to show why the big 4 want to go to a user pay the broker system would be the big fours market share. I'm sure if that was looked at and shown to the public it would show why the big 4 want to change the way brokers are paid. Look back 20 years ago and see what each of the big 4 had in market share and compare it on current market share. I'm sure it will show why the big 4 would be happy to see brokers gone.
  • SaveUsJohn | 11 Feb 2019, 10:09 AM Agree 0
    James...where's Uncle John, hiding? Surely he doesn't have the CBA noose around his neck like you do! The public would listen if he spoke!!!
  • Passionate Broker | 11 Feb 2019, 10:15 AM Agree 0
    Come on James, i know you're far more passionate and vocal than this article says... I imagine you're under some type of gag order by CBA (hence conflicted position) but you do have a great voice that the industry will listen to so please let it all out
  • Broker | 11 Feb 2019, 10:53 AM Agree 0
    The shopfront model is going to be a huge burden on franchise owners locked into leases, how they stay afloat on what will be heavily reduced incomes is any ones guess. I suspect that 225 shop front figure will be closer to maybe 25 or nil once all their leases expire orl they go belly up in the meantime.

    Aussie John obviously new this was coming a while back and CBA had to buy it so they could silence the biggest profile in the industry - all part of the CBA plan to kill off the competition.

    • TweedBroker | 11 Feb 2019, 12:25 PM Agree 0
      Interesting theory... The 'branch' model is definitely at the core here. Historically people went to branches (big 4 or other) to get loans. This antiquated, expensive business model is why the CBA and others are attacking the broker segment. Operating costs of branches are huge with ongoing trend of less loans (ie revenue) being written / coming through the doors. CBA and cronies dont want the the negative PR of closing branches so are attacking the SMEs taking their market share with smaller overhead. In the Tweed area where I operate near, if the CBA closed its branch the 55% of population (pensioners) would freak out majorly...
  • Tim H | 11 Feb 2019, 12:50 PM Agree 0
    Good to see James Symond and other industry leaders speaking out against the proposal.

    On the subject of user pays if Mr Comyn is so adamant that the person receiving the service (ie: the borrower) has to pay the broker who they engage then I guess it follows that as lenders are the ones engaging valuers, solicitors and mortgage insurance companies then when the changes he wants come in CBA will stop charging clients for these fees and start paying for them. Not likely I think.
    Much the same as Commissioner Haynes belief that lenders will drop rates once they stop having to pay broker commissions and that they will charge a fee equal to what a broker would charge the client. That also is not bloody likely.
    • Broker | 11 Feb 2019, 02:04 PM Agree 0
      If Haynes was running the RC into aged care - using the same logic he would suggest that all patients should be relocated to park benches , as that would result in better aged care outcomes.
  • John Cooper | 11 Feb 2019, 03:22 PM Agree 0
    James, Uncle John used to say "we'll save you" - well this time I do not think you can.

    With your masters at CBA pulling the strings at Aussi - in particular the CEO - there is nothing you can say to convince me that you are not controlled by the bank and that the Aussi model will not suffer because of the banks attitude to brokers. The CBA Board and senior managers should be made to pay for their actions - I hope the law comes down heavily on them. If any broker had acted like the CBA with just with one borrower or been involved in money laundering the lenders, ASIC, the aggregator, professional body, PI insurer etc would have come down on the broker like a ton of bricks, and they would probably be banned for life.

    Please tell your bosses at CBA that brokers are not amused by the comments from the CEO and others at the bank. James, I wish you well but I believe you have a major problem to ensure the continuing viability of your business while you are owned by the CBA. Good luck.

    • Broker | 11 Feb 2019, 04:32 PM Agree 0
      A broker would definitely do jail time if they did what CBA have been up to, but the greedy crooks at CBA and the rest of the banks will walk away with maybe a slap on the wrist , then it will be business as usual.
  • Marcus | 12 Feb 2019, 10:08 AM Agree 0
    Too late James Symond, you should have stood up for the industry more at the RC!!! The horse appears to have bolted now.
    • Broker | 12 Feb 2019, 11:02 AM Agree 0
      Would not have made any difference as Hayne & co ( banks) were after Brokers blood from day one.

      The Broker outcome was already scripted from the outset, all they had to do was plant the puppets in the box, and make sure they got the answers they required from the pre arranged stage show.

      It has nothing to do with better consumer outcomes , and Hayne has proved that.
  • A Sad & Upset Mortgage Broker | 12 Feb 2019, 12:22 PM Agree 0
    The Bank Enquiry was designed to investigate Corporate misconduct which was found to be evident and guilty. Then the Commissioner recommends a new pay structure for the Big 4 competitors, The Mortgage Broker. Something is missing here....It is like a mis-diagnosis has been recommended. (Let's reduce competition by deleting the Mortgage Brokers remuneration that keeps him stable...The Trail Commission)

    The problem is that politics is over powering common sense here. Come on Commissioner who have you been listening too? Obviously not all sides of the story has been given to you, just the CEO's of the Big 4 Banks.

    Hopefully someone with some common sense in Federal Government will fix this mess sooner than later before many young hard working Mortgage Brokers can't afford to stay in the Industry to offer the 7 days a week customers service, at the customers home.
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