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Broker group calls out "deflection"

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Rebecca Pike | 22 Nov 2018, 02:20 PM Agree 0
The aggregator is urging a focus on the customer in the debate around mortgage brokers
  • | 22 Nov 2018, 02:36 PM Agree 0
    Isn’t this the reason the major banks ended up calling for a royal commission?
    Sure they would take a few fines with debiting deceased accounts etc but there prime motivation was to destroy brokers.
  • Scott McTeare CEO My Local Broker | 22 Nov 2018, 02:36 PM Agree 0
    Well Done AFG

    We need to all stand strong together. This can’t become a broker smashing exercise by the banks.
    • AB Broker | 22 Nov 2018, 03:12 PM Agree 0
      Oh but is my dear boy!
    • Really | 23 Nov 2018, 08:56 AM Agree 0
      Well said Scott and as a CEO of an aggregator what have you done?
  • BS | 22 Nov 2018, 03:11 PM Agree 2
    A little irony - the leader of the Australian Labour Party, who has said on numerous occasions that he stands for the Australian mum & dad worker, not Big Business- demanded a Royal Commission, he got his wish & whoa it seems it's all about standing for Big Business - Finacial institutions that want to control & rort the lives of the ordinary Australian citizen. I hope you're happy now Mr Bill Shorten, the jokes on you mate
  • Frustrated Broker | 22 Nov 2018, 03:17 PM Agree 1
    I wonder how the big banks would react if collectively, mortgage brokers around the country decided to simply avoid submitting any loan applications to a specific lender for say......a week at a time?
    Can you imagine if all of a sudden one lender just simply stops getting any loan applications from any broker nationally?
    That's around 15,000 brokers all saying no, collectively to one lender at the same time!
    Perhaps a whole month would send a stronger message?
    The people running the RC all have their heads in the sand as do many of the people reporting on it.
    Yes, unfortunately there have been a small number of brokers over the years that have been a bit opportunistic at times, but these guys have been ousted from the industry never to return, the penalty for dumb brokers are harsh, and rightly so
    At times it seems the penalty for the big execs in big banks seems to be getting another highly paid job at the next bank!
    Brokers provide competition, service and results.
    Banks provide fees, costs and excuses....
    Perhaps ASIC should consider taking home loan lending away from banks all together and simply leave it to the broker network that can get it done better, quicker and more to what the borrower needs rather than what the bank would like?
    Just my twenty cents worth....
    Broker for 10 years plus......
  • jg | 22 Nov 2018, 04:36 PM Agree 1
    Any broker who supports CBA you should take real hard look at yourself. The Banks are the villains not us they ripped the consumer off , broke numerous rules lied or mislead the watch dog and here we are defending ourselves. We did not rip off the consumer M$ in useless insurance policy, charge fees when clients were dead and the list goes on and on. If we loose our trail most of us might as well pack and go as working for a paltry .6% doing all the compliance and training and having claw backs is not worth it.
  • Good broker | 22 Nov 2018, 08:20 PM Agree 1
    How has the subject of branch lender DLA not been brought up in the commission? Branch lenders receiving bonuses based on lending volume who are given the authority to approve the loans themselves? Hmmm? I am sure that I am not the only broker here who has dealt with a client who was well and truly outside of bank policy but then the client was approved by that same bank. Like brokers, branch lenders should have all application assessed by a credit assessor who is at arms length.
    • H | 23 Nov 2018, 10:17 AM Agree 0
      you are right it happens constantly especially around serviceability......we come up with one number based on the banks guidelines and it doesn't work and on the same numbers going direct to the same bank it seems to work for them......sorry something wrong here
  • ragtag broker | 23 Nov 2018, 09:09 AM Agree 2


    1. a ragtag, lowly qualified group of people (of which I am one) - mortgage brokers - most with only a cert iv in finance mortgage broking OR Diploma at AQF 5 took on a massive industry, an oligopoly, and a 125 billion dollar company (CBA) AND many top brass with HARVARD DEGREES

    2. over a 20 year period we have focused first on consumers best interest, then our own

    3. we have reaped rewards and earn more than most CFO's of ASX 200 publicly listed companies

    4. we have the lowest rates of reported misconduct that ANY OTHER PROFESSIONAL GROUP (FOS data). IN Fact, the number of misconduct reported against mortgage brokers was so low that it had to be grouped with other categories otherwise the number for us as a group would be statistically too insignificant to report alone

    5. WE HAVE lowered the cost of mortgages by 2% overall. We have introduced competition in the market place, the consumer gives us a 9/10 rating consistently compared with either the bank's direct channel AND it is higher than ANY OTHER professional group.

    6. We took the fight to you and your peers comm bank, we DEFEATED you fair and square WE WON YOU LOST AND NOW that you lost and lost big, you want to use regulation to try to beat us ?


    ragtag broker
    • friend of ragtag broker | 23 Nov 2018, 12:15 PM Agree 0
      Great Post! Thank you.

      Only point of contention is No.6. We have partially won. Broker share is only 53%, we haven't won yet my friend.

      Now that I am angry, I want the rest, I want the REMAINING BIT TOO or 46%, I'll leave them with 1%

      I won't be satisfied, I won't sleep, eat or rest, until we get to at least 99% market share and a 9/10 customer satisfaction rating.

      Then I will come back and celebrate with you and laugh with you at these bozos who haven't a clue
  • Broker | 23 Nov 2018, 10:54 AM Agree 0
    That’s because branches do not have to send the income evidence to credit , so they just increse the incomes as necessary , it’s just straight out fraud.
  • Brissy Broker | 23 Nov 2018, 11:33 AM Agree 0
    If you want to know about Unconscionable and Irresponsible lending from a Major Bank branch, try this one. This is 100% factual and was brought to my attention this week.
    The Branch gave a $40K home loan, with Interest Only repayments, and just a 10 year term, to a couple aged 81 & 83. Two years later they approved an increase of $15K to this loan to repay a credit card debt (customers were then 83 & 85). They left those customers with a $25K credit card limit, and all this with the ONLY income for this couple being the Government Old Age Pension (at the time just a combined $2,048pm net).
    If you do the figures you will agree this would not service with any lender and is so far outside any policy it is unbelievable, yet is was approved, TWICE.
    These clients have no other realisable assets than the family home which at the time was worth just $350K.
    Now with just 6 months of the loan term remaining they have no way to repay their $55K home loan or the $19K they have racked up again on their credit card.
    I just wish I had come upon these clients a year ago as it would have been a brilliant case for the RC to examine.
    • Broker | 23 Nov 2018, 11:41 AM Agree 0
      I'm sure the RC would try and say that it must have been approved by a broker employed at that bank branch!!
  • Answer the call | 29 Nov 2018, 10:26 AM Agree 0
    Where is Aussie's response? James and John stand up for the industry that you helped create. Your legacy may well be represented by your in action during the rc rather than revolutionising the home lending industry 25 years a go.
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