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Non-bank urges brokers to avoid big banks

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Rebecca Pike | 07 Feb 2019, 02:00 AM Agree 0
The lender has accused the big four of "throwing mortgage brokers under the bus"
  • Kev | 07 Feb 2019, 08:40 AM Agree 0
    It's about time someone in our industry called a spade a spade.
    Wish you were at the front of our industry, Kim.
    We should have you as the head of the MFAA.
  • Regional Broker | 07 Feb 2019, 09:22 AM Agree 0
    This is a great response Kim Cannon is a great supporter of the brokers >We also need to congratulate the MFAA for their effort so far Mike Felton has been in Canberra all this week in front of politicians including both the treasurer and Shadow treasurer from both sides of parliament as well as having over 20 media interviews, His Sky News interview is worth watching . Can Australian Broker publicise his hard efforts and those of Peter Brown's of the FBAA efforts.
    This fight is no where near over if we all maintain the rage.
    Can everyone who reads this PLEASE sign off on one of the electronic petitions circulating.
  • Paul | 07 Feb 2019, 09:49 AM Agree 0
    Its fantastic that a non-bank lender who has supported so many of my customers where the banks would not, has come out and supported us in this way however, it's simply not enough.
    All 2nd tier lenders that rely on brokers as their main distribution channel need to rally together and educate politicians on both sides what the true ramifications will be if broker channel is decimated.
    It's not just the thousands of small mortgage broking businesses and the jobs they generate that will disappear, its jobs within the lenders that rely on broker channel and other businesses that offer support services to brokers that will go.
    And let's not forget the loss in tax revenue from all of these because trust me, when the profits go back to the banks, they are much better at "reducing" their tax liabilities than us mere mortals are.
  • Cam | 07 Feb 2019, 09:50 AM Agree 0
    Haven't used the CBA since 2007 - any broker with a modest IQ should have been able to see where this was all heading.

    What "us" ( that being the brokers , smaller banks , non banks etc) need to do is to attack this jointly , it's the anti competitive argument that needs to be driven home.

    I couldn't care less if the CBA or any other big4 provider wants to stop commissions - they should be free to make this choice.
    Just as a broker or a consumer should be free to make the choice whether to use them or not.
    At the very least a senate committee should be established with a wide range of industry participants ( Except the CBA - we have heard their view's ) involved - perhaps with the remit to report back by June 2020. I hope that once the key shadow's within labor are lobbied this is where we head.

    Don't forget that before the BRC was established there was broad consensus among Labor , the cross bench and the Nats for a RC - so what do you know the banks call for the RC as they could see the writing on the wall but hey current government here are some terms of reference we have drafted , and Mr Hayne as the RCommissioner will do us just fine. I would be astounded if that combined group of royal commission proponents sided with the big4 V "us"

    Perhaps those who wish to kill commissions now should do so on a trial basis and let's see how the market looks June 2020 in terms of competition for the consumer.

    Finally "us" need a respected advocate , someone outside of the industry who is all for more competition , deregulation etc. I couldn't think of anyone better than say a Paul Keating, after all he was the one who floated the dollar , deregulated the banking system etc etc. Or maybe whistleblower Jeff Morris could help "us"

    Anyway I wish "us" luck....plenty of water to flow under the bridge yet.....
  • TMAC | 07 Feb 2019, 09:57 AM Agree 0
    Kim - why didn't FirstMac help fund the advertising campaign?
  • Mountains Broker | 07 Feb 2019, 10:15 AM Agree 0
    I agree with Kim, well said mate. In fact anyone that originates another loan through the Commonwealth Bank might as well just close their doors now. I would love to see Matt Comyn's face if suddenly the broker originated loans just dried up. It would only take two weeks of not getting a broker originated loan for them to take a good hard look at themselves and the value of us brokers. And before anyone has a crack at me for my comments and starts saying that I'm not looking after my clients just take a hike. The CBA have nothing to offer my clients that I can't get somewhere else. If we don't stand up for ourselves against these big banks then we are only contributing to our own demise.
    • Angry | 07 Feb 2019, 11:22 AM Agree 0
      Hi Mountains Broker, it's not about the CBA not having anything to offer your your clients. Even if they did have something to offer, the fact that they are actively trying to destroy our industry is not in our clients best interest.
  • CBA-NO-WAY | 07 Feb 2019, 11:26 AM Agree 0
    Firstmac - i'm a fan, your QLD bdm is one of the best! but the problem is that your products are just not flexible enough - LVR restrictions & less than competitive rates - i'f I were a customer i would be questioning why I was being referred to you - not all deals are vanilla enough for you - sorry but there are better NON-MAJOR options out there
  • SOAG | 07 Feb 2019, 12:17 PM Agree 0
    I agree Cam "us" do need a respected non-industry advocate. I listened to Mike Felton's media interview, while he articulated the point very well I don't think he was anywhere near expressive enough - the Public need it jammed down their throats that they will ultimately be the loser, the public need to educated on the false rhetoric that some in the media are spinning.
    Mainstream media - TV & Radio are "us's" best option - MFAA & FBAA need to get on their - 60 minutes for a starter. We need the intelligent journalists who see this for what is - Banks wanting to shut out Brokers to regain market share & increase shareholder profits.

    We "us" need to be serious over the next 12 months with not putting any deals with any of the MAJORS & their Subsidiary's - your business is on the line - no excuse!
  • Jerry | 07 Feb 2019, 01:43 PM Agree 0
    Good comments and again stress any broker who uses CBA after the CEO comments yesterday and at the RC should really have a good hard look at yourself your not helping our industry. Find another way the only way to make that peanut learn is not to support CBA in any way or shape. Look to the second tied lenders as they need us the Big 4 do not give a dam about you your families or your employees.
  • Pedro | 07 Feb 2019, 03:55 PM Agree 0
    Mortgage brokers to the Royal Commission are as Lee Harvey Oswald was to the Warren Commission- convenient patsies to take the fall!
  • | 11 Feb 2019, 04:17 PM Agree 0
    I agree Brokers should stop using the Major Banks.
  • ANNOYED broker | 12 Feb 2019, 10:28 AM Agree 0
    Good on you Kim and other fighting against this - it is a joke
    I don't use them (the majors)
    "Stuff the Bank"

  • Peter | 12 Feb 2019, 10:34 AM Agree 0
    What about the comments of Ross Greenwood on Channel 9 when he says brokers do nothing to earn the trail. Here is a guy who is supposed to be a business "expert" who doesn't understand that we handle all enquiries like switching from fixed to variable , security substitution etc as part of our ongoing commitment to the client. I personally spend 80% of my time servicing existing client needs and enquiries.
  • concerned | 12 Feb 2019, 10:37 AM Agree 0
    Thanks Kim. Very direct and appropriate . if the policy makers don't understand what is going on, they should leave.
  • Peter | 12 Feb 2019, 12:57 PM Agree 0
    Further to my earlier comment. These "experts" say that the cost to the consumer will be reduced by the abolition of brokers. Has anyone highlighted the fact that Banks increased the margins on Investment loans etc by around 0.5% last year in response to the intervention of APRA thereby gifting the Banks additional revenue. The restrictions were rescinded prior to Xmas and yet the increased margins remain in place.
  • Kick a Can | 12 Feb 2019, 02:28 PM Agree 0
    What would Conn Bank do with Aussie and whatever else they own but turn them into shop fronts for the Conn Bank.

    They are already as they control what is being done and what is being said.

    The public has to turn against the Conn Bank and others before we have a fighting chance.

    The agaregators need to suspend the Conn Bank and anyone else from their lender panel.

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