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Mortgage stress sees cut to LMI provider profits

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Australian Broker | 13 Feb 2017, 08:25 AM Agree 0
The move away from 90% LVR loans has financially hit Australia’s biggest supplier of lender mortgage insurance
  • Marty McBroker | 13 Feb 2017, 02:05 PM Agree 0
    Maybe they should lower their premium rates to attract more customers like any other rational business would do.

    Imagine the boardroom meeting. Head of sales to CEO..."We just lost another lender and our review with CBA is coming up in a few months, it's touch and go whether they will renew. Our new premiums written is falling off a cliff this year as it is"....CEO replies " Hmmmm. I know, our strategy will be to increase premiums again. It will totally discourage our end customers and our lending partners will be required to look for alternatives but it will keep the share price up for another few months at least until we get our bonuses. Anybody else gotta better idea?".

    Meanwhile a lowly broker sits at his desk pondering why they get paid the big bucks and why banks still take longer to process loans than they did 17 years ago..
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