Non-bank’s open letter to brokers

by Rebecca Pike15 Feb 2019

A non-bank lender has released a passionate letter in support of brokers, pledging to stand behind them as the industry faces changes to remuneration.

Bluestone’s open letter said the recommendation to remove commissions was seen in the industry as “a potential death knell to thousands of small businesses”.

The group said the potential decline of the industry carried a “real threat to consumer outcomes”, reducing choice and competitive pressure among lenders.

The letter continues, “As a non-bank, Bluestone does not have the benefits of an extensive branch network. As such, along with dozens of other non-banks, credit unions, non-majors, regionals and specialist lenders, our ability to offer more options for borrowers is tied closely to the continued vibrancy and competition the mortgage broking industry offers.

“In an industry without brokers, many consumers across Australia would simply have little option apart from the local branch of a major bank. As smaller lenders disappear, so would the competitive price tension they bring to the market, ultimately leading consumers to be forced into less choice at higher cost.”

Bluestone said it remained “entirely supportive” of brokers and the work they do, saying brokers were “passionate advocates for their clients, and without this source of professional guidance, many borrowers would be unable to realise their financial goals”.

The non-bank also took the time to reassure brokers that the recommendations were not set in stone, praising the “inspiring camaraderie and peer support” in the sector, referencing the number of campaigns currently ongoing.

“We want our brokers to be absolutely assured that Bluestone will stand behind you during this time, and we continue to support all efforts to help the sector retain its viability and strength,” the letter concluded.