A mortgage broker from Melbourne has invited journalist Scott Pape for a coffee after his critical article on brokers.
Vincent Moore, a 26-year-old broker at Entourage finance, wrote the open letter on LinkedIn after Pape sent out an email with his thoughts.
Pape’s article, published on the Herald Sun, outlined the reasons why brokers are deemed to be so conflicted, particularly the fact that brokers might choose lenders based on their upfront commission and increase the loan sizes to affect their trail commission.
He concluded by referencing the recent appearance of Mark Zuckerberg in front of the US Congress, saying, “Zuckerberg, when faced with the overwhelming conflicts of his business, admitted to Congress that Facebook was considering implementing a user-pays platform that would protect users. It’s time mortgage brokers in Australia did the same.”
Moore began his open letter by saying he was a big fan of Pape and his “superb skill in translating complex financial terms and situations”.
He added that he welcomed his views and input, and also admitted that the financial industry “is far from perfect”.
He continued, “I would be lying if I was to say I wasn't disappointed in some of the statements you’ve voiced about mortgage brokers. In particular that we always pick lenders based on how much they pay us, that we increase loan sizes to make more money and that we shouldn't be paid by banks for the service we provide.”
Rather than argue with Pape, Moore’s calm and collected solution was for him to come into their office and see how things were done for real.
“Rather than list my detailed thoughts online in what is fast becoming a cacophony of different articles and comments on the matter, I'd prefer to invite you to our office in Melbourne. Come for a day or three, sit with us and see what we do. See the follow up work we do for clients long after their loan has settled, how we help our clients find the best lender and product for them - based on what will work for them, not us,” he said.
“I understand you're a busy, busy man but I would enjoy nothing more than to give you an insight and perhaps a different view on mortgage brokers.”