Getting to the bottom of crisis hype

By: Mark De Martino, National Director of Sales, Loan Market
If you were to live by the headlines of the mainstream media, you’d be coerced into believing the fall out from the pending European Financial Crisis (EFC) will wipe out your business and the only applications you’ll be lodging will be with a government agency with a box asking you how many food stamps you need.

The bare truth is that there are severe concerns about rising government debt in Europe and the capacity of certain countries to repay this debt. But let’s be honest here, does this effect your mortgage business in Australia?

The answer is a simple; yes and no.  

The only prediction I can give you with absolute certainty is that this will all blow over. Yes, the landscape will be changed, there could be fewer players, tighter rules and a smaller pie but that’s how markets bottom out.

If the Eureozone falls, Australian banks will not
I’m a firm believer in the strength of our banking system and in turn, the long term prosperity of the brokering industry. The recently introduced Basel III accord has solidified the tight and responsible requirements of our banks. There’s no excessive exposure or severe leveraging undertaken by any of our major banks.

Credit will not “dry up”
With the explosion and popularity of high interest savings accounts, Australian bankers know there’s accessible domestic money. Retail deposits aren’t the cheapest source of funds, but with the wealth of this country we have the capacity to fund overselves through a temporary tighter global lending landscape.

If you’re not willing to do the extra paperwork, there are plenty of brokers who will.

As a result of the 2008 GFC, the National Credit Consumer Protect Act (NCCP) is now a part of our industry. In the eyes of the finance-professional weary public, this boasts our professional pedigree. I firmly believe NCCP cements the mortgage brokers place in the credit supply chain.

Our profession isn’t one that comes in-and-out of financial fashion
Mortgage brokers are in high demand ultimately because they can fight for the everyday consumer. When this blows over, there will still be a market of lenders and there will still be a market of borrowers. The fundaments of brokering will not change. Borrowers will always want a panel of choices and a helpful hand in getting the best deal.  

Stay positive. You are great at what you do
My passion, along with many of my colleagues here at Loan Market, comes from seeing the positive energy from brokers in the face of adversity. Every industry will be faced with challenges from a possible global financial crisis. Stay positive about your business; work harder than your competitors, look for niches and angles and take aggressive action of all of them.  

The media’s job is to draw attention and generate readers and viewers. Be sure to realize this. Stay the course and you’ll reap the rewards of those who jumped ship

The dead simple truth here is that our market is absolutely filled with opportunities and will be for decades. Especially for great brokers like you!

Mark De Martino has more than 15 years experience in accounting and the finance Industry and has been State Manager for Victotia/Tasmanaia for the last three years.

His specialties include the training and development of brokers and their businesses and his passions lie in leading a group to greater individual and team success. His core values of creating balance, security and wealth for his brokers and their families is the key to the Victorian Team success for so many years.

Starting in January 2012, Mark will undertake the role of National Director of Sales for Loan Market.