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Brokers demand branches play by the same rules

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Australian Broker | 29 Aug 2014, 08:18 AM Agree 0
Brokers demand greater scrutiny be applied to branch managers and their lending activities, after many experience dubious lending practices by the banks
  • Cynical | 29 Aug 2014, 08:34 AM Agree 0 the MFAA or they'll be telling us to contact our Aggregators to whine!!
  • Andrew | 29 Aug 2014, 09:19 AM Agree 0
    Had a CBA deal declined due to poor conduct by the applicant with his CBA credit card only to receive a call from the borrower a week later saying he had been approve in a branch
  • observer | 29 Aug 2014, 09:35 AM Agree 0
    I think most brokers will have stories of branches bending the rules and vice versa. The key here is the level playing field. The bank lenders should be subject to the same scrutiny as a broker.
  • M Pratt | 29 Aug 2014, 09:47 AM Agree 0
    How very unusual for a Bank to take short cuts with direct clients, not!!
    I am sure the regulators will be on to it by 2036
    Maybe Bank staff should all be held accountable like we are
  • Albertus Waldron | 29 Aug 2014, 09:53 AM Agree 0
    My issue comes down to branches giving clients poor loan structures on the back of failing to take into consideration any tax or SMSF implications. I recently helped a client who via a branch had managed to cross collateralise their SMSF property against another investment property because the Branch assumed the SMSF holding trust was just a family trust.
    Total lack of care or understanding.
  • dilshani sangiah | 29 Aug 2014, 09:54 AM Agree 0
    Had a client that I did a pre-approval for and when they did find the property and I requested his latest payslips received an invoice from him. When I queried about this he said he has just become a contractor to the same employer. I said to him that as he is no longer employed we will have to inform the bank and they will need to accept this as an exception. Two days later was told that the branch has told him it is not a problem and has put him in touch with a mobile lender and she has told him as the credit is coming into the bank she can proceed as employed. Told my BDM and aggregator and as far as I know nothing has happend.
  • Lilian | 29 Aug 2014, 09:59 AM Agree 0
    Yes we have the same experience with NAB. Many clients came back to us and asking the question why the lending policy is different at the branch, eg non resident lending, at branch, you do not need to show 3 months bank statement to confirm the income. Also many loans could not go through, it can be done at the branch level.
  • Ray-Perrth | 29 Aug 2014, 10:05 AM Agree 0
    Like most brokers I have experienced stories of branch managers going way outside NCCP and not giving a damn. ASIC has got to pull its finger out and start monitoring what is happening in branches the same way they monitor brokers.
  • MCC | 29 Aug 2014, 10:06 AM Agree 0
    ASIC simply need access to the bank's internal audit reports which are carried out regularly in respect to 'credit risk' quality. That sets up a more transparent connection between external & internal processes & will then reveal the extent of 'fraudulent' activity. In many cases officers are weeded out via those internal audits & are either shown the door, requested to resign, or charged accordingly. However the extent of these incidents are not known to the external public/media. So here's the challenge to the industry journalists - use your investigative powers, your connections etc & open up this 'can of worms', but be prepared for what is revealed. Remember 'sales targets' & bonus rewards for hitting them can be a huge incentive for a lending officers to bend the rules & break them where necessary.
  • Sharryn | 29 Aug 2014, 10:07 AM Agree 0
    we all have our stories to tell. this happens. I fought the lender after a branch approved a loan that the third party or commercial channel wouldnt approve (it was a commercial refinance). CLient has resi loans with the lender already.The branch gave them a resi LOC for $420k.Same lender I have reference numbers and loads of notes. that bank is now paying me the trail. not sure what happened to the lender in the branch. I found out when I didnt get trail on IMB loan
  • Susan | 29 Aug 2014, 10:36 AM Agree 0
    the same should be said for car dealers. If a broker does a UCCC car loan we have to abide by ASIC responsible lending regulations, however car dealers writing UCCC loans don't. It is a very lopsided playing field.
  • Realist | 29 Aug 2014, 10:37 AM Agree 0
  • Phil | 29 Aug 2014, 11:00 AM Agree 0
    We had a couple declined by a major 2nd tier lender recently because of an undisclosed $8,000 default with AMEX. Normally no lender would approve a loan as the excuse for non payment of the $8000 was poor! Anyway one of the BIG 4 lenders approved it through 'head office'. The fact that the father had given his daughter and son in-law $300,000 towards the purchase may indicate he knew people in high places of the bank concerned. Our BDM for the lender verified the approval and said we would never have been successful through the broker channel because of the default; he too was amazed.
  • John Melbourne | 29 Aug 2014, 11:20 AM Agree 0
    Easier for ASIC to find a broker doing the wrong thing than a corporate giant. Just shows how ridiculous the compliance regime is. Have never hear in the media that a Bank Manger has lost his job due to non compliance but heaps of brokers. Lets all call the MFAA FBAA to report shady dealings of the Banks Branch network because they will be able to do something!!!!!!!!! The joys of being an easy target
  • don | 29 Aug 2014, 11:24 AM Agree 0
    MFAA & FBAA are setup to make money from brokers. Don't tell me they are not aware of what's going on in the bank. If these 2 money suckers are serious about working for brokers, they should have lifted their games and be proactive from day one. I am a member not by choice. ASIC is a waste of public money.
  • Ed Ridge | 29 Aug 2014, 11:42 AM Agree 0
    Ask ASIC to set up a service where we can provide details for them to investigate. The MFAA, FBAA and ABA will and probably CAN'T do anything about it but ASIC can.
  • Country Broker | 29 Aug 2014, 12:12 PM Agree 0
    It is obvious from the above comments that the is endemic behaviour pattern in the banks and corners are being cut ! It is virtually an epidemic !!
    I might be wrong does it have anything to do with some banks paying bonus commissions to their consumer loan writing staff. I may be cynical , The biggest home loan lender has some trouble with ASIC recently in regards to rouge financial advisers , I wonder how they would , or any bank go for that matter if ASIC started to audit NCCP files that their commission based loan writers had written.
    Hopefully I am wrong but I think the results would be very embarrassing !! Will this happen , NO why , ASIC do not have the resources m, so they target the little fish , with the big fish get away
  • Peter White - CEO FBAA | 29 Aug 2014, 01:16 PM Agree 0
    @Cynical - it was the FBAA that highlighted this as commented at the beginning of this article.

    The FBAA has already spoken with ASIC and we are shortly to hold a lender discussion group on various subjects and I'm confident this will be a part of it.

    Any other lender not already a part of the discussion group and wants to be, please email me at
  • observer | 29 Aug 2014, 04:29 PM Agree 0
    I think most brokers will have stories of branches bending the rules and vice versa. The key here is the level playing field. The bank lenders should be subject to the same scrutiny as a broker.
  • Alex | 29 Aug 2014, 10:24 PM Agree 0
    Guys I feel your pain, I was a broker for 10 years, Now work for one of the major 4. I understand that the policy is more relaxed for branch/bacnk staff. The point is that Branch lenders are staff and it is a direct transactions between the lender and customer hence the policy is different. We have the same NCCP guidelines, scrutinising accounts, responsible lending etc. Brokers are referrers/third party and the policy will never be the same.....Over the years I have seen many Branch Lenders, Call centre lenders walked out and dismissmed on the spot due to fraudulent activities etc. In Conclusion.... After being on both sides of the fence, I have to say that compliance at a major bank is full on and non compliance has a 0% tolerance. It seemed to me that compliance on the broker side was a tad more relaxed. Just my thoughts and opinion guys, no disrespect to anyone
  • Old Broker | 30 Aug 2014, 03:02 PM Agree 0
    A few years ago ...without going too much into it but there was a branch guy sitting in his office waiting for customers to come in after I had pre approved them and with the usual .7% discount I could get .8 or if I was 'nice' .9% and the branch would pip me with 1.1%. Long story didnt happen much however it happened and I dealt with it. I kept in touch with the customers and refi most back when the banks were not passing on the rba rate cuts and swooped in like a maggie. The point is here young brokers you have to play the long game. Banks will do some hot deals for clients but once they are on the books they are forgotten. I can tell you dozens of stories but if you lose one call it up in 12 months its like magic.
  • Not Amused | 01 Sep 2014, 10:05 AM Agree 0
    My neighbor/friend came to me for an increase on his existing bank loan against an investment property but as his only income is centrelink unemployment benefits I was unable to help him yet his local bank branch gave him the loan he required. Go figure
  • Steve McClure | 01 Sep 2014, 10:21 AM Agree 0
    The disparity in processing is the biggest competitive issue today. Many bank/branch channel processes enable a loan to be approved (without full verification) and documents issued instantly. Broker deals can queue for 5 days to be assessed and any file action takes days to turnaround.
  • SEQ BRoker | 01 Sep 2014, 04:22 PM Agree 0
    Yikes. Imagine if you are new to Broking. I dont see how someone can succeed in this climate as a newbie. Also you have to ask exactly what does the FBAA and MFAA do?
  • marty | 02 Sep 2014, 09:08 AM Agree 0
    @Alex, I get where you are coming from and agree to a point, with relationship banking the rules can be bent for the right people or the right peoples kids etc. I can live with that. What we are protesting about is the plain fraud that occurs regularly and which goes un scrutinised by ASIC. If the CBA financial planning saga is any indication of culture not many bad apples are getting walked.
  • Albertus Waldron | 02 Sep 2014, 09:23 AM Agree 0
    Agree with Marty, A mortgage broker is named and shamed on the MFAA website where is the comparable Banks version of naming and shaming
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