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Poll: Is an 80% conversion benchmark realistic?

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Australian Broker | 11 Aug 2011, 12:00 AM Agree 0
An industry-wide conversion benchmark of 80% is achieveable, according to St. George's outgoing Steven Heavey. What do you think?
  • Dave Alexander | 02 Aug 2011, 12:20 PM Agree 0
    I think 80% is acheiveable if a bank doesn't credit score. With not knowing the goal posts (i.e. credit score) how can you posibly know whether a deal will pass or not?
  • John Black | 02 Aug 2011, 12:24 PM Agree 0
    What is the in-house conversion rate of lenders for applications taken by their own employees? Also simply discussing conversion rates means absolutely nothing unless the criteria for measuring conversion rates is spelled out. I would also question the methodoligy behind Heavey's 80% statement. What is it based on?

    In this industry anyone can say anything to get publicity
  • Garry | 02 Aug 2011, 12:58 PM Agree 0
    Steve Heavey is correct in this, Its not only achieveable but should be made the benchmark. The lenders have enough to do without needing to do the brokers work for them. When a broker submits a deal he/she should know that it will be approved and able to be settled before it even gets to submission stage. They should know the positives and negatives of the deal. Its called being a professional. The only unknown factor should be the credit rating. If a broker isnt sure the deal will work there are avenues availabe to help determine the viability of the deal. The banks need to share the responsibility as much as the brokers for lack of training in this area. Having said that the brokers should cleary understand the lenders policy and understand what the lender is looking for. Going on a bout of bank bashing wont help the situation. Train yourselves and be professional. Unfortunately its something the broker industry is sadly lacking. I can say this because I am a broker of 12 yrs and predominately deal with HNW clients and have had to fix many deals that brokers lacking in the basics have put to lenders with declines following. If a broker cant be professional and submit quality deals with decent volumes then they should get out.
  • BONED | 02 Aug 2011, 01:26 PM Agree 0
    Said it many times before, what reasonable Broker doesn't aim for 100% CR?! Fact is, number of factors outside our control conspire against us, as there is only so much we can control! Credit Score, Valuations, Previous History with Lender, in some cases interpretation of Policies due to inexperienced Credit Officers, and in St George's case, differing Serviceability Calculators (from those we have as opposed to those used by Credit)!

    So, taking into account the above, how can we be held to account??

    Conversion Rates were (in my opinion) introduced to rid the industry of those who submit applications without knowledge or understanding of the 'Loan Process' - somewhat on a 'wing & a prayer'! Unfortunately, it's become slanted only one way, and that is towards the Lenders, and we as Brokers all get caught up in it equally!
  • mortgageandlease | 02 Aug 2011, 03:18 PM Agree 0
    Garry, all that is fine and yes we all would love to hit 80% - 100% conversion rate, but there has been plenty of times over the years where I have rung and spoken to a BDM or Policy Hotline to discuss a particular part of a deal and been told that what I was proposing was acceptable, only to have it knocked on the head for the very reason I brought up the discussion with them in the first place. Getting the correct answer first time would save a lot of time for us and them.
  • Ozboy | 03 Aug 2011, 08:36 AM Agree 0
    Agree with mortgageandlease this has happened to us so often now we record all phone conversations and then submit them to the relevant lender at the relevant time. It's really interesting the responses you get after they hear the recording. If lenders can't give us their policy's or the correct calculators (hey St George!!) then getting 80% is like winning the lotto. It doesn't matter who you blame at the end of the day it makes us all look bad and doesn't help the customer YET as we all know none of this matters when you are playing the "push my own barrow" game through the media.

    I encourage all of you to invest in software to record your phone conversations (about $10 for your mobile phone) and start playing them back to your lending partners at the appropriate time, it really works.
  • Michelle - Loan Ave | 03 Aug 2011, 11:49 AM Agree 0
    Our conversation rates are a lot higher than 80%. However, we ensure that we do all the work for the broker prior to them submitting a deal. We couldnt operate with the conversion rates that others operate on. Banks would need to work on the relationships a lot more than they do.... Thats why mortgage management is so successful. A personalised service and quality applications. No one gets paid unless the loan settles.
  • eberand | 03 Aug 2011, 12:09 PM Agree 0
    well i suggest St George come up with a fair conversion system before tries to lead the market on what is acceptable conversion so its information is rich not poor. I had a period where 4 deals all settled, but as one was delayed, St George called it 75% conversion and lowered the commission. I asked them to have a look at this , but the response was abysmal to say the least and still waiting. I hear others have suffered similar penalties. Happy to discuss Mr Heavey
  • Dave Alexander | 03 Aug 2011, 12:10 PM Agree 0
    Hey Ozboy, what's the name of that software? I think that's a great idea. The only bank which I have any luck with on scenarios is Bankwest since their scenario guys are credit!
  • petert71 | 03 Aug 2011, 12:16 PM Agree 0
    Theoretically it's possible. My biggest bugbear is when lenders count pre-approvals that aren't converted to full approvals. With a 90 day expiry period, most lenders are requiring brokers to submit a complete new application and the previous one counts as 'not proceeding'. There's very little a broker can do to make a client buy a property when the haven't found the one they want.
  • Ozboy | 04 Aug 2011, 12:24 PM Agree 0
    Hey Dave there are quite a few around depending on your phone, do a google search "record phone call PHONE MODEL" but a good place to start is: Good luck.
  • Michelle | 11 Aug 2011, 01:20 PM Agree 0
    Care I think there are comsumer protection laws that state that the consumer/ person needs to be aware that you are recording them before you start recording.
  • Ozboy | 12 Aug 2011, 09:21 AM Agree 0
    Hi Michelle, yes your right but I have software that plays a message at the start saying this call is being recorded and asks them to advise if they don't want it recorded.
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