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Mortgage broking needs urgent reform, claims banking association

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Australian Broker | 11 May 2015, 08:37 AM Agree 0
The mortgage broking sector needs urgent reform from the FSI to restore consumer trust, according to a banking association
  • Old School Broker | 11 May 2015, 09:07 AM Agree 0
    I don't have any of these problems with my clients, they trust me cos I don't just use them as a cash flow. They are all repeat customers from a good referral base of happy clients. Work for your customers, not yourself and the banks. Fcku the banks I say...
  • Gold Coast broker | 11 May 2015, 09:13 AM Agree 0
    A survey of 15 brokers from large franchises is not really a "trusted" source is it.
    The amount of clients I see come to me after being declined for loans that should never have been submitted by bank staff is appalling. A 2 week training course does not a lender make. So focussed on sales targets and bonus that no cost comparisons are completed or assessment of the customers affordability.
    Pull your head in choice. My clients trust me. I don't churn. I saw more dishonesty in the branch networks in my 12 years of banking than I ever have in brokers. They just cover it up.
  • Antbroker | 11 May 2015, 09:19 AM Agree 0
    COBA have joined Choice and CALC and FRLC are at the stagnant end of the pool in the finance industry, crying in their own misgivings.
  • laughingontheinside | 11 May 2015, 09:23 AM Agree 0
    I find this interesting considering that 3 Companies were shadow shopped in this investigation. Aussie , Mortgage Choice and AFG. 2 of 3 companies have a large banking investment behind them yet COBA is asking for reform... Now lets see... I had my own mortgage with a bank and not only was my identification lost but the deeds to my property were also lost. I was sold a product that did not really suit my overall circumstance but worked for the banks circumstance. Let's not just point the finger at the Brokers here... Banking Staff, Lending Managers and Bank Managers are just as bad if not worse! My clients seem to be more than happy they get shown options and are more than happy that they are not just clients they are friends. I think in the 20 odd years that I have been a broker I have never had a complaint about the service I offer nor the amount of product knowledge I have. Maybe choice should Investigate "Independent" brokers rather than Aggregation based Brokers before COBA starts slamming brokers for improper practices! Maybe just Maybe the Aggregators should focus more on making sure that their brokers have all the information not just limited information based on who they are affiliated with ......
  • David | 11 May 2015, 09:34 AM Agree 0
    Yes "maybe" check out the bank staff who do loans - I had one long time client/friend who's 10yrs Interest only expired so had to go to P & I. They asked if I could do another Interest Only term but under NCCP (age - over 60!!, income/job situation, exit strategy (no super) etc I said I was SORRY we couldn't minute a major bank gave him a new Interest Only loan - in my mind totally against NCCP....and not the first time a major has done a loan where we said we couldn't assist - I wonder how often this happens?
  • Brado | 11 May 2015, 09:45 AM Agree 0
    Typical of Choice and the other bodies involved... essentially they are just grand standing to try to show their relevance to society, and today's example is focussed on our industry. They do this all the time with many industries.

    Does Choice think that our industry forgets that they were receiving commissions for the referral of clients in the "One Big Switch" fiasco? In the end Choice is nothing other than an alarmist company, that makes money from its clients subscribing to their 'advice'... if they aren't being alarmist, how can they charge these fees?
  • New School Broker | 11 May 2015, 09:58 AM Agree 0
    Dear Old School Broker, Thanks for sharing your experience. It's motivating to do right thing at first and leave the rests...
    Is it like slow but sustainable income?
  • Broker | 11 May 2015, 10:59 AM Agree 0
    Amazing that these organisations even get air time in the Broker space, why I wonder?

    Perhaps Choice should survey some real clients that have real dealings with Brokers.
  • Old School Broker | 11 May 2015, 01:51 PM Agree 0
    New School Broker... If you keep getting referrals from happy clients, you cant lose. Again, focus on your existing customers, keep them informed and happy and then the rest will come naturally from them... I've been broking for 16 years and I still love my job and my clients. I only hate the banks and their changing policies and directions, that's why I have no allegiances or favourites, you can't afford too!
  • Boxing in shadows | 11 May 2015, 09:34 PM Agree 0
    Mark CEO, what was the inappropriate advice?? That's the right question. Did the shadow boxers actually apply and were recommended an unsuitable product??? Aussie, Mortgage Choice and AFG have spent $m in compliant software so to suggest they are not disclosing comms and ASIC requirements is simply untrue.

    Mark, consumers are engaging brokers more and more. Why is that?

    Julia, hoping you can follow up here.

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