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Broker outrage at Firstfolio fee

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Australian Broker | 02 Aug 2011, 06:00 AM Agree 0
Brokers have expressed outrage at a recent move by Firstfolio to impose a $150 per month fee on originators who don't hit volume targets
  • Glen Miller | 02 Aug 2011, 12:22 PM Agree 0
    Brokers only need protest with their feet. Move to a more proactive aggregator
  • sidbroker | 02 Aug 2011, 12:36 PM Agree 0
    Fintrack/Connective did a similiar thing to me after i used a differant aggregator.
  • Garry | 02 Aug 2011, 12:42 PM Agree 0
    I agree with this move. There are admin costs as noted in the article that must be paid for somehow. If the broker isnt settling 3 loans a year or even a month then they arent really a professional broker. Maybe it time they re-evaluated their chosen profession.
  • Brassed Off | 02 Aug 2011, 12:47 PM Agree 0
    I am also outraged with First Folio. NEVER get email, marketing or loan offering and product updates from them.I wrote protesting the new "fee' and got a reply saying it was referred to senior management and that BDM would contact me. Still waiting. This group seems to just want to generate cash flow from acquisitions rather than new business. A classic example of how not to build goodwill with the people (brokers) who provide you with your income.
  • L Scott | 02 Aug 2011, 12:59 PM Agree 0
    I am an affected broker and its disappointing to see the cost put on the broker. Perhaps they should start employing brokers and seeing how much internal staff cost to run as opposed to we brokers who have supported them with zero cost upfront to firstfolio.
  • Not surprised | 02 Aug 2011, 01:26 PM Agree 0
    Yes I agree with Glen to move on .... they will still charge you the $165( inc GST)per month ($1980pa !) after you've gone though. So the increasing "compliance cost to maintain a broker’s accreditation... " doesnt make any sense.
  • Whistleblower | 02 Aug 2011, 02:32 PM Agree 0
    Folks, if they want to charge you a monthly fee, then ask them to remit 100% of all inward-commissions, and then on-forward those commissions to you with a monthly invoice.

    AFG tried this a few years back... and it didn't fly.

    If you let them get away with it, in a market of decreasing loans, FHOG applicants, significantly reduced new home constructions, and a two tiered economy, then you deserve them.

    By the way.... you do realise you can request the banks to remit your commissions directly... go on, write to the 'actual' lenders....
  • Broker | 02 Aug 2011, 04:53 PM Agree 0
    3 loans a year is hardly an unachievable target for a professional broker, much ado about nothing I say!
  • oldBroker | 03 Aug 2011, 10:11 AM Agree 0
    "On the flip side, some of our customers are unhappy with their brokers."
    My oh my... to publicly denigrate the very people that support your organisation is inexcusable. And I am sure that the broker has to field inquiries/issues/etc that are rightly the responsibility of Firstfolio... in other words, it's a two-way street.
  • Daniel Son | 03 Aug 2011, 10:47 AM Agree 0
    3 loans a year. Surely unemployment benefits would be a more profitable option.
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