Major lender switches stance on "inactive" brokers

by Rebecca Pike31 May 2018

A major lender has announced an e-learning course to help brokers who have not settled a loan with the bank in 12 months.

Commonwealth Bank of Australia (CBA) has produced the training to help brokers keep up with products and criteria.

During the first round of Royal Commission public hearings in March, CBA was accused of shutting out brokers who did not write enough loans for them. It was found that 710 letters of de-accreditation had been sent out to brokers who had not been active enough.

In an attempt to change this, CBA’s executive general manager home buying, Daniel Huggins, has announced it will now be offering courses, instead of de-accrediting brokers.

He said, “As one of Australia’s leading home lenders we recognise mortgage brokers as a key channel for customers who are looking to purchase a home.

“We want to support our brokers and their clients through every step of the home buying experience.

“At CBA, we and our customers need to be confident that the brokers we partner with have the ability to provide home buyers with the right guidance on our products and services. To do this, it is important that our brokers understand their regulatory obligations, as well as our policies, systems and processes. 

“In the past we have seen that brokers who write very little volume with the bank are unfamiliar with our systems and processes. This can lead to poor customer experiences and outcomes, as applications often require more time and effort to review to ensure they meet our regulatory obligations and standards.

“For brokers who haven’t settled a loan with the bank in more than 12 months, we have introduced new e-learning training to ensure they remain up-to-date with our current products and eligibility criteria.

“There is no requirement for brokers to write a minimum number of loans in order to retain their accreditation with the bank.

“At CBA, we understand there are many reasons why a broker may not have submitted loans to us. We understand that a broker’s role is to provide their clients with a loan that suits their needs and objectives. And, in some cases, a CBA product may not be the ideal solution for the customer’s unique financial needs.

“Our new e-learning training is another example of our commitment to driving good consumer outcomes.”

 

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COMMENTS

  • by ? 31/05/2018 9:26:23 AM

    What if the right guidance on A lenders products and services is to NOT have them?

    What if a broker can’t find a client that they hate enough to put them through the hell that is dealing with a lender

  • by Finance Tart 31/05/2018 10:05:06 AM

    Now this is an interesting backflip from the CBA and I wonder if it has anything to do with its reputation being trashed in the current royal commission.

    As a matter of principle, I have never placed a client with the CBA due to its restrictive and anti-competitive volume requirements. Fortunately, as in the past, there will always be a comparable or more appropriate lender to use.

    Since my stance is unlikely to change in the short to medium future, I will continue to derive great personal satisfaction whenever I refinance an existing CBA borrower to a more reputable institution.

  • by RMJ 31/05/2018 10:32:43 AM

    CBA make it so difficult for brokers its easy to get an alternative solution usually at a better rate. I am sure they purposely make it difficult who they have never really supported. They were dragged into the Broking area kicking & screaming so any nonsense about supporting brokers is just that, Nonsense!