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Brokers shoulder new clawback hit

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Australian Broker | 11 Apr 2011, 06:50 AM Agree 0
Mortgage manager National Finance Club has introduced clawbacks as part of its remuneration structure, following the market-wide DEF ban
  • Rory Cowman | 11 Apr 2011, 12:18 PM Agree 0
    If NFC's discharge rate in the first 12 months is less than 0.5% of all loans, why don't they share some of the clawback burden for their broker's?
  • rebeccajarrett | 11 Apr 2011, 12:27 PM Agree 0
    If this move is designed to "enable shared responsibility for client retention between NFC and the broker", ten NFC have a responsibility to inform the broker of any payout requests or other interaction which may lead to a discharge so the broker has an opportunity to work to save the business. Share the information - not just the burden.
  • sue | 11 Apr 2011, 12:58 PM Agree 0
    if the discharge rate is .05% why is it necessary to institute such a long and savage clawbacb ?
    name another workplace , where 12 months after you are paid for the work , it is all taken from you ? Is it reasonable for brokers to have to identify a clients plans 12 months ahead?
  • Peter Scalzo | 11 Apr 2011, 01:22 PM Agree 0
    I agree with Sue - this is a savage clawback. How can a broker forecast what a client will do two years in advance. This is a setback for NFC.
  • positivebroker | 11 Apr 2011, 01:25 PM Agree 0
    I would like to see Wayne Swan explain how this increases competition? All this will do is drive more brokers to the wall which gives the majors even more power. talk about dumb policy.
  • Wayne Smith | 11 Apr 2011, 01:45 PM Agree 0
    This is an irrational action by NFC. If there is only .5% discharge of loans why introduce such a punitive and draconian measure.
  • Steve Aspinall | 11 Apr 2011, 01:59 PM Agree 0
    No surprises here - NFC first to lift rates and first to introduce extremely harsh clawbacks. Not a good one for the industry.
  • David1 | 11 Apr 2011, 02:07 PM Agree 0
    Here's a thought. How about we bring in a rule that Wayne Swan has to repay his wages for the term if he doesn't get elected at the next election. I think that's fair.
  • Broker | 11 Apr 2011, 03:13 PM Agree 0
    Don't worry about DEF , just include it in your FBC, ( if you value your profession and time and service that you provide to your clients that is)
  • Matt Cuzner | 11 Apr 2011, 03:17 PM Agree 0
    It shoudl be noted that this is strictly an NFC announcement and not represetnative of all mortgage managers
  • Patrick | 12 Apr 2011, 01:52 PM Agree 0
    How many branch loan officers will have their salary docked when a loan discharges early?
    Lenders carry early repayment risk on all loans written and cannot clawback the sunk cost of writing direct business. Broker clkawback is just another lender rip off.
  • James | 12 Apr 2011, 06:38 PM Agree 0
    Well said Patrick. I cant believe the managers have joined the ranks of the lenders in this shameful rip off.
  • Confused | 13 Apr 2011, 10:20 AM Agree 0
    Got to admit I'm very confused about comments made so far. 90% of business written goes to the majors or their subsiduaries. In my mind that means you all (those who are whining in the comments here) are sending your business to organisations that claw back your income and or dont pay you trail for the first 12 months. Please explain to me how NFC's approach is any different to where you place your business now. And please tell me why you dont look to originating business to lenders who have competative products and dont claw back?
  • Ozboy | 13 Apr 2011, 10:50 AM Agree 0
    Well said Confused.
  • Tell the truth | 13 Apr 2011, 01:21 PM Agree 0
    NFC is principally funded by one of the majors mentioned in confused's diatribe i.e NAB (Advantedge.
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