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Major banks control broker loans, says non-major

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Australian Broker | 09 Apr 2015, 06:00 AM Agree 0
A non-major bank says greater transparency is urgent in the mortgage broking industry, as major banks are “increasingly taking control of the broker-originated home loan”
  • Part time believer | 09 Apr 2015, 08:39 AM Agree 0
    I agree to a point with the gist of the article but ....1) not all sub 80% loans are quality! 2) I think Suncorp are paranoid about what deals gets sent to the majors. A lot of their low lvr low risk deals would be from their prop channels.
  • EQ Broker | 09 Apr 2015, 08:40 AM Agree 0
    While I agree that the big banks are increasingly taking ownership of smaller lenders and aggregators, I deny the premise that this is at the value proposition of a broker. Yes the profits may be more and moreso ending up in the hands of the big four but what does my customer care where the profits go so long as the loan is suitable to them and a good deal for them. As a broker I can still choose from a number of products and different policy options which my customers have needs for - my problem will be if the big 4 banks start imposing stricter policy on their smaller lending subsidiaries - driving business their way in an unfair way. You already have the big four be able to circumvent Genworth policy at their policy discretion where smaller lenders can not as an example.
  • Craig Budden | 09 Apr 2015, 09:05 AM Agree 0
    I think Suncorp need to look a little closer to home if they're not getting their share of the market. They actually dropped off the radar for a long time, as their product/rate offering wasn't competitive. Only recently have they sharpened their pencil to attract business under 80% LVR, & so they have started getting some business from us again where appropriate.
    When you're not doing very well, sometimes the easiest thing to do is blame everyone else for you're short comings.
  • John Whitten | 09 Apr 2015, 09:12 AM Agree 0
    This article is a load of rubbish. My aggregator is owned by a big bank, and that has no influence on where I put my loans. My concern is always what is best for my client.

    If my aggregator directed me to put loans to a specific lender, I would leave them immediately. In saying that I have no problem advising clients that my aggregator is owned by a major bank.

    Maybe if Suncorp improved their service proposition to brokers, they might get more business from us and not have to resort to this rubbish.
  • John | 09 Apr 2015, 09:22 AM Agree 0
    Suncorp want to play, but they don't want to share their toys?

    You can't say one thing, then do another, that is the message I am getting from Suncorp. So Suncorp, if you really want more business, get credit down in other states, and do as you say
  • Vic Regional Broker | 09 Apr 2015, 09:45 AM Agree 0
    How many times do we need to see these types of comments, boring! If Suncorp have issues put the money up and play!
  • Michael Kent | 09 Apr 2015, 10:04 AM Agree 0
    More political spin!

    It's similar to the consumers best buddy John Symond. The Aussie marketing and in particular their tv ads convey a message they are on the consumers side and help them battle against those big nasty evil banks.

    Um...HELLO!! who owns 80% of Aussie? the CBA that's who and friendly Johnny made $185mil in the deal.

    It's a joke and it's sneaky marketing that fools the consumer.
  • Harry | 09 Apr 2015, 10:05 AM Agree 0
    Is suncorp allowed to use words like independent, impartial- coz we brokers cannot as per asic guidelines. would asic be investigating them too-
    Suncorp is poor not only in providing service to brokers they are also disliked by many people due to their poor customer service record. It's is hard to write deals with Suncorp as I usually get unhappy customers complaining about them. Their rate is not always competitive except for when they run these special promotions.
  • Paul | 09 Apr 2015, 10:05 AM Agree 0
    When will lenders understand how brokers work and why we send business to certain places? It has absolutely nothing to do with who owns aggregators or lenders! I know for certain that I originate more loans with Suncorp than with the organisation who owns my aggregator! The lenders really are out of touch...
  • Broker | 09 Apr 2015, 10:19 AM Agree 0
    Wrong Suncorp - how about taking a serious look inwards at the rubbish service that you offer to Brokers. Fix this and you just may well gain some market share!
  • James | 09 Apr 2015, 10:39 AM Agree 0
    I think Suncorp needs to take a long hard look in the mirror. Lending policy and LMI agreements have a far bigger impact. Many smaller lenders such as Suncorp have too narrow a view on what they will and wont look at lending wise.
  • JC | 09 Apr 2015, 10:48 AM Agree 0
    Suncorp need to stop being a victim and come up with a service proposition that works for brokers. I love to support smaller and regional lenders, however the service standard from Suncorp is unpalatable! Why would I send MY client to any lender that is not going to provide them with a reasonable standard of service and risk losing them as a client?
  • John Pedler | 09 Apr 2015, 11:05 AM Agree 0
    Come on Suncorp get real. If you want support you need to reciprocate and not keep trying to "cherry pick" the market. Communicate your policies and consistently apply them and then we might be able to understand where you are coming from
  • Craig Budden | 09 Apr 2015, 12:22 PM Agree 0
    Michael Kent....No, it's not similar to Aussie at all. Once again, ownership of the head franchise does not infer, or even require, support of the majority shareholder, in this case CBA.
    As an Aussie franchisee myself, we actually take pride in the fact that when asked 'who do you send most of your deals to', we can say, hand on heart, no one gets most of our deals, as the offers keep changing as do our suggestions of appropriate lenders. I wonder how many brokers, such as yourself, regardless of ownership, have a preference of a certain lender? Like St George Flame brokers for example. You can't honestly tell me that the average broker becomes a flame broker at St George because they clients who are miraculously all suited to St George!
    As usual, it's easy to blame someone else when you're doing poorly.
  • Michael Kent | 09 Apr 2015, 04:04 PM Agree 0
    Craig Budden - Where did I say anything about Aussie brokers having a preference for CBA?

    My point is in relation to the smoke and mirrors that goes on with regards to actual ownership of a product and that IMO John Symond is extremely hypocritical to make it look like he is so anti-bank to the consumer when he sold out to them.

    There is far too much re-branding going on and white labelling.
  • Carlo | 09 Apr 2015, 06:20 PM Agree 0
    Transparency is key however any professional broker would show you in words and actions that the customer is placed with the best loan for them. If not then the broker market and customer satisfaction would not be as healthy as it is.

    The vast majority of brokers have a bank or lender on their register and the brokers will tell you that the influence is nil.

    CBA have interests in Mortgage Choice, Aussie and nMB. Macquarie has interest in Connective, AFG, Vow (through YBR) and others. NAB has interests in Plan, Fast and Choice. Even Resimac has interest in John Kolanders FinSure group.

    This is all nothing new and does not seem to affect the product decisioning however true transparency for the consumer is a must.
  • John Whitten | 10 Apr 2015, 08:59 AM Agree 0
    It just shows how little Suncorp understands about the broking industry. I am not owned by my aggregator. I employ my aggregator to provide me with a service, they provide IT, training, and accreditation and for that service I pay a fee.

    I can leave my aggregator whenever I want and it will have little impact on my business.

    It is the same with my solicitor and accountant, they provide a service and I pay a fee. Do they want me to explain their ownership to my clients.
  • Laughable | 11 Apr 2015, 10:37 AM Agree 0
    Polly calling the kettle black eh! Suncorp suffers from short term memory loss....does anyone remember LJHooker Finance anyone...anyone??

    PS Short term memory loss is a precursor to Alzheimers!
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