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Brokers take aim at banks on submission criticism

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Australian Broker | 21 Jun 2012, 07:00 AM Agree 0
Brokers are none too happy at being blamed for application hold-ups, saying banks need to take their fair share of responsibility
  • Brisbane Broker | 21 Jun 2012, 10:39 AM Agree 0
    Why anyone want to deal with CBA. I'm a broker now for 7 years and never used CBA. There are so many other lenders that have better rate & products than CBA.
  • melo | 21 Jun 2012, 10:52 AM Agree 0
    Most Lenders ,more so CBA have complicated what should be very simple straight forward process.I believe 90% stopped applications could be avoided with straight forward checklist and process.I.E Anz process.Up front valuation,one pay slip always YTD Income,1 years tax returns for s/E + on floor LMI.Most of our application come back unconditional in 24 hours with anz.Rest pack look for reasons outside check list ,to stop,condition or decline loans, even on most straight forward of deals.Many conditions placed on loans havent been invented yet, as after 20 years still seeing them.Plus 1 phone call could avoid other 10% of stopped application>YES Just use KISS system.Further non Majors have to be easier ,otherwise they wont get sniff as they taken process to new level of unnecasserily pendatic to ridiculous.
  • Incognito | 21 Jun 2012, 11:16 AM Agree 0
    Bank's are staffed by people - sometimes young people. And loans can be tricky.

    But banks !PLEASE! do something about variations & increases. These things are impossibly cumbersome.

    I recently did a FULL DOC $108k increase to 80% LVR (clean credit, perfect repayment history) and it involved over 40 emails of correspondence.

    It's absolutely tragic..
  • Martin | 21 Jun 2012, 11:20 AM Agree 0
    Our office follows each lender's checklists for that product/structure, however time and again the lender replies asking for more information (Notice of Assessment, extra statements, accountant's letter...) even though we've met their requirements upfront. It's no single lender - it's most of them. It's a miracle when we get Formal Approval in one go. While CBA approve deals some others don't, their posturing is unnecessary, and is an affront to the very people who bring them business. I'd not treat our clients with the dismissive attitude they display, always. Therefore in past 2-3 years I've written very little with CBA. There are many other alternatives.
  • Steve McClure | 21 Jun 2012, 12:01 PM Agree 0
    It's an issue of skillsets. A high performing broker has macro skills of communication, personal rapport, sales etc. Least of their aptitude might then be wrestling with COLA. The most valuable brokers generate business - not the micro skills of error free input. So, why the “naughty corner” attitude with threats of commission cuts? I’ve put several workable ideas to CBA that would resolve some of the issues but none get adopted and the problems continue.
  • Donut | 21 Jun 2012, 01:47 PM Agree 0
    While I agree with CBA that it is up to Brokers to be correct in the things we do. One would have to be an idiot to not understand the various Banks policies and requirements. It's all out there to know. But I simply can't let it go without many times does a Lender want something different? How many times do Assessors get it wrong? How many times do Lenders ask, up to 3 or more times, for the same support documentation. And finally, how many lenders train, substantially, their Assessors to deal with the Broking public? Not too many, if any, because most Assessors are lacking in this human skill.
  • Rod | 21 Jun 2012, 03:19 PM Agree 0
    great comments, Brisbane broker & melo
  • Damien | 21 Jun 2012, 03:55 PM Agree 0
    I decided ages ago that with my 10 years experience and my recently aquired diploma, that I will no longer support banks that constantly whinge, they know who they are....
  • Positive Broker | 22 Jun 2012, 09:42 AM Agree 0
    It's not us and them. I will freely admit to the odd mistake in a submission. It's just a pity some banks won't. And I definitely agree with melo. One phone call can fix many problems in 30 seconds and then the deal is off the queue and moving ahead. That would be a good thing right?
  • Gary Perth | 22 Jun 2012, 09:43 AM Agree 0
    What is CBA's agenda? CBA is not the best lender to throw abuse from regarding quality. Sure some brokers get it wrong and make mistakes but the CBA is consistanly the main lender that complicates applications in our office.
    CBA would know this so why prod the masses, what is coming?
  • Melbourne Broker | 22 Jun 2012, 01:53 PM Agree 0
    I don't think CBA is taking aim at all brokers, and I've met too many brokers who have no attention to detail (yes, I have also made my share of mistakes). Part of the problem is a lack of education of brokers from the BDM units and continual education too. CBA probably have more cause to complain, as they also require 2 years experience before they'll take on a new broker and have a three month "training" cycle, but continual education is key.

    In saying that, the banks should start to focus on individual broker assesment and quality, and not look at the broad statistics. The better brokers get lumped in with the ordinary ones and these types of broad statements can be quite insulting. Take the time to weed out those who aren't performing, as many of them probably don't even know they are making errors.
    It's time the banks started forcing the bad brokers out of the industry by removing accreditations for poor performance and make ours truly a profession, rather than an up-scale trade...
  • Papery | 23 Jun 2012, 02:45 PM Agree 0
    Good on you Melbourne Broker! Ima lso sick to death of so many Brokers 'short cutting' the system by whining to BDMS for exceptions because they lodge lazy deals, or dont allow enough lead time for the Lenders to pick the deals up. LIle many professional & I dare say professional & long time Lenders (call us dinosaurs) we know the best way is to pay attention to details, provide notes where you need to & just provide all the requirements on the checklist & mitigte any shortcomings on the deal up front. There easy...problem solved! Next....
  • ozboy | 25 Jun 2012, 09:27 AM Agree 0
    Papery for MFAA CEO, answers the problems immediately and then says Next... I have a list here for you once you start your new job!
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