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MFAA comes out swinging after APRA labels broker loans risky

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Australian Broker | 27 Jun 2014, 06:22 AM Agree 0
The MFAA has dubbed an APRA report misleading for asserting that broker introduced loans are riskier than other channels
  • marko | 27 Jun 2014, 08:38 AM Agree 0
    Sorry Phil but yomy experience supports APRA's view. In every lender I have worked broker-introduced loans had higher incidences of fraud, higher arrears rates and higher loss rates than loans sourced through in-house channels direct to the borrower. Also, ask the mortgage insurers about their experience. Let's see that evidence you are talking about.
  • Paul NQ | 27 Jun 2014, 08:53 AM Agree 0
    I won't hold my breath waiting for APRA to admit their shortcomings and lack of industry understanding. They are bureaucrats they believe they have no shortcomings.
  • Brian Hastings | 27 Jun 2014, 08:53 AM Agree 0
    should do more than just comment. i havent seen anything in the mainstream media. APRA are a joke and should be proven wrong in no uncertain terms.
  • Jake | 27 Jun 2014, 09:38 AM Agree 0
    Sour grapes from these idiots at APRA! They should give evidence to back up their claims or shut up.
  • Scott H | 27 Jun 2014, 09:44 AM Agree 0
    APRA, feel free to come and have a look through my loan book. 10 years of broking and i have one loan in arrears. Give me that sort of risk every day of the week.
  • Tony | 27 Jun 2014, 09:48 AM Agree 0
    APRA obviously interviewed the Banks for the report content. Clearly the Banks and APRA have no understanding as to the "quality" of bank branch lending otherwise the report might have been different and more accurate.
  • Neil W | 27 Jun 2014, 09:49 AM Agree 0
    What, another body having a cheap shot at brokers! Why are we portrayed as "fast and loose"? How many times has a broker had a deal declined only to find out later that their client "went direct" and had the deal approved? Brokers have too much to lose by doing "dodgy deals". Industry shame, committed in court, loss of trail, ejection from the industry. Why would brokers risk all that?
  • Clarke Kent | 27 Jun 2014, 09:50 AM Agree 0
    What can you expect from a bunch of public servants pondering their time, getting paid fortnightly and accumulating their tax payer funded superannuation!.
  • Broker | 27 Jun 2014, 11:10 AM Agree 0
    Perhaps these peanuts at APRA could have a chat with NAB given NAB's recent comments re Broker introduced business being of superior quality to what NAB generates internally.
    Or better still, APRA could support their comments with some factual information to provide evidence that what they are saying is actually correct.
    As a hard working and honest Broker, I am sick of the likes of ASIC, APRA etc trashing our profession.
  • MCC | 27 Jun 2014, 05:00 PM Agree 0
    There is no doubt that NCCP compliance has had to have had a forced improvement on loan quality from both a presentation & credit perspective. Put simply a 'Credit Adviser' really doesn't want to have to re-write a loan more than once to get it over the line. To do that they tarnish their image with their client & duplicate workload. Therefore the front end 'research' would appear to be much more thorough than pre NCCP days. Credit Advisers have to get it right the first time. Why would this be different in either selling channel? If anything 'sales' targets under the proprietory channel could undermine credit quality? Need to qualify & quantify the info sources for the APRA draft document? Perhaps Phil could follow that up for us before he leaves?
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