ELITE BUSINESS WRITERS, 2010

Within an industry set to enter a new and widely-anticipated era of licensing, a number of elite performers have stood out from the rest in 2010.

Despite tightened lending conditions, The Adviser's second annual Elite Business Writers ranking has revealed that many brokers have achieved impressive loan volumes through their commitment to quality, value and service.

In an era of credit licensing and regulation, where that quality, value and service are essential to improving customer perception, it is through a commitment to customer service, ongoing support, diversification, cross-sell and the overall quality of loan submissions that these highly respectable volumes have been achieved.

Our 2010 Elite Business Writers have delivered significant triumphs, demonstrating that service value underpins a broker's offering. Being able to identify how that value can be realised is therefore fundamental to the success of any mortgage broking business.

Mortgage brokers who can fully deliver the value of their client service offering will be well-positioned to succeed as trusted advisers in the new licensing era. And as consumer confidence improves, brokers who can offer their clients a diversified and solid proposition will excel.

I would like to congratulate sincerely those brokers who make up the top 50 in this year's Elite Business Writers ranking, and I commend all brokers who participated in this year's survey.

I would also like to extend my gratitude to our industry sponsor, the Commonwealth Bank of Australia, for making the 2010 annual Elite Business Writers ranking a resounding success.

Alex Whitlock

Publisher

The Adviser

FOCUS ON PARTNERSHIPS

Relationship building remains a core focus for Commonwealth Bank, and this year's rankings reflect that brokers and lenders who forge strong partnerships can enjoy positive results.

The last financial year was a challenging environment for financial services and particularly for mortgage brokers. During this time, national credit regulation has come into force and new compliance obligations have compelled brokers to elect their business model for the future, i.e. whether to hold an Australian Credit Licence or become an Authorised Credit Representative.

In addition, funding remains tight in the slow post-GFC recovery. A number of institutional funders have continued to keep a tight rein on lending policies due to having restricted funds. There is also a regulatory move - welcomed by the industry - toward responsible lending, which is reshaping the way in which lenders and intermediaries provide their services to customers.

In the post-GFC era, it has become evident that a broker's capacity to forge strong relationships with lenders is a pivotal element of their offering.

Brokers who made this year's Elite Business Writers rankings have been successful in developing positive personal relationships with their lending associates.

The Commonwealth Bank is proud to continue supporting the Elite Business Writers rankings, and this year's results are a testament to the quality and commitment of our nation's best brokers.

The brokers who have made it into the rankings are to be sincerely commended for their efforts.

At the Commonwealth Bank we are committed to helping mortgage brokers strive for quality of service and commitment through providing support and building relationships. Our relationship managers and credit assessment staff are always willing to assist brokers and to facilitate a positive broking experience.

We look forward to seeing the nation's quality brokers thrive in years to come.

Congratulations to all Elite Business Writers of 2010 - you are helping to shape and drive the future of mortgage broking.

Kathy Cummings

Executive General Manager, Third Party and Mobile Banking

Commonwealth Bank of Australia

REACHING HIGHER GROUND

Lending conditions were tough across the board, but these elite business writers weathered the GFC storm by adopting innovative approaches to the market.

It's been a turbulent and testing past few months.

Post-GFC stresses have put pressure on funding costs and this has in turn forced lenders to review their interest rates and lending policies and tighten the same. Consumer confidence around lending remains low, although it is now slowly stabilising, while brokers are still finding their feet in a new era of national credit regulation.

Nevertheless, savvy mortgage brokers have weathered the economic storm productively.

These brokers have excelled in their performance and now boast impressive mortgage volumes, as The Adviser's 2010 Elite Business Writers report shows.

DRIVING BUSINESS THROUGH DIVERSIFICATION

In its second successful year, The Adviser's Elite Business Writers top 50 list has identified those brokers who lead the nation in residential and other finance loan volumes, cross-sell, and diversification.

In the 2009-2010 financial year, many brokers focused on diversifying their revenue stream to drive their businesses forward. Based on this year's Elite Business Writers results, it is clear that diversification in insurance is a key driver for business in the new age of broking.

Last year's report recorded top insurance volumes of $80.1 million; these have risen to a whopping $160 million this year.

In addition, the report reveals that most of those business writers who have come out on top have invested significantly in non-mortgage areas.

More mortgages are being sold with cross-sell products. In fact, the number of products currently being sold per mortgage is two, while the highest performing brokers, such as Niche Lending's Moshe Moses, are cross selling up to 100 per cent in relation to residential mortgages.

QUALITY AND VALUE FOCUS

Quality and value still underpin brokers' offerings, with many brokers offering cross-sell in a bid to improve the value of their client service proposition and to gain customer loyalty and referrals.

Whatever the industry holds for the future, one thing is clear: brokers who want to come out ahead and level competition with the banks need to concentrate on the value of their service.

A NEW YEAR, SOME NEW FACES

In this year's Elite Business Writers report, The Adviser has seen a surge of new entrants joining the ranks. This flood of new players instils confidence within the industry that mortgage volumes are being achieved despite a tough lending climate.

Among these new entrants are Frank Taddeo, Brad Nolan, Tony Bice and Phillip Nguyen, whom we welcome to the top 10 rankings.

CONSISTENT TOP PERFORMERS

Meanwhile, many of last year's top ranking loan writers have held their ground this year, demonstrating both consistency and fortitude.

We would especially like to acknowledge the efforts of last year's top 10 finalist Jeremy Fisher, who this year rose up the ranks by an impressive six places to claim the number one spot as top Elite Business Writer for 2010.

METHODOLOGY

To be considered an Elite Business Writer, a broker needs to have written a minimum of $30 million in residential mortgages in 2009-2010.

Loan writers were also required to meet the following criteria:

• A minimum conversion rate of 80 per cent;

• Less than one per cent in arrears; and

• No more than 10 per cent of submitted business required a re-work

To ensure transparency, information provided by brokers was cross-referenced against that held by the broker's number one lender.

As a result, several brokers narrowly missed meeting the quality criteria, despite strong loan volumes and cross-sell figures.

Brokers' volumes for residential and non-residential business were then combined to give a total business written figure. This figure determined the overall ranking.

The top 50 writers (based on total volume) were assessed against a range of criteria to create individual top 10 rankings for key business indicators such as residential volumes, mortgage size and number of mortgages that included a cross-sell.

REPORT OBSERVATIONS

Sub-rankings have highlighted not only consistency between the top performers but also a change in business focus compared with last year's results: a focus towards a more diversified offering.

Of the top 10 performing brokers, four brokers' residential volumes accounted for less than 50 per cent of their total business written. Interestingly, none of the top 10 brokers focused 100 per cent on residential mortgages.

When it came down to cross-sell, however, of the top 10 performing loan writers, six wrote more than 50 per cent in cross-sell products.

JEREMY FISHER RANK #1

TAKING IT TO THE STREETS

Creating a solid geographic footprint has been the key to 1st Street's business success, says top-placed Elite Business Writer Jeremy Fisher

SHOPFRONT OFFICES give customers an impression of reliability, stability and professionalism - and achieving this was certainly Elite Business Writer Jeremy Fisher's intention when he decided to use a shopfront as a mortgage broking office.

Mr Fisher has now expanded the brokerage to six offices across NSW, Queensland and Victoria, including four shopfront offices. All 1st Street offices are situated in local shopping areas.

"This year has also been my most successful year in terms of business and in the way of geographic expansion," he says.

The new office in Mittagong is part of 1st Street's strategy to expand its geographic footprint in less densely populated areas. And he's planning further expansion still.

"I plan to continue expanding 1st Street's shopfront presence in other major cities and regional areas," Mr Fisher says.

Having achieved total volumes of $280 million last year, Mr Fisher wrote an impressive $120 million in residential loans and $160 million in insurance cross-sell.

"By offering a highly personalised service with strict attention to detail at all times, I have built a solid reputation and have been fortunate enough to receive many referrals from each of my clients over the years," Mr Fisher says. "This has played a large role in the business' success."

In addition, Mr Fisher says effective communication and strong organisational and time-management skills are important to ensure that a broker can service every client with the highest level of care and attention.

"I have an open door policy and a close working relationship with my fellow associates, which allows me to succeed in an industry where fast and effective communication is paramount," he says.

Mr Fisher has also committed to improving this aspect of his business through using a business consultant.

"In order to maintain the fundamental operational principles on which I have developed the business, I am utilising the services of a business advisor who will work with all 1st Street brokers in order to maintain a consistent, dedicated and reliable service," he says.

A quality broker is often the main communicator between the borrower, lender, solicitor and real estate agent, he adds, and a good communicator can actively reduce any stress that arises between the parties.

JUSTIN DOOBOV RANK #2

ALL ABOUT COMMITMENT

Intelligent Finance's Elite Business Writer Justin Doobov says top broking comes down to having a commitment to go above and beyond the call of duty

COMMITMENT TO the client underpins the value of using a mortgage broker in today's world.

And according to Intelligent Finance's Justin Doobov, having a strong commitment to servicing clients' needs is the reason why he has been named as one of Australia's top two Elite Business Writers for the second consecutive year, having achieved the number one ranking in 2009.

In 2010, Mr Doobov wrote $116,923,796 in residential loans and $139.7 million in total other business volumes. Mr Doobov also achieved significant insurance targets of $125.2 million in the last 12 months, focusing mainly on life insurance as well as home (contents) insurance.

Despite achieving such impressive volumes, Mr Doobov says what makes a good broker is not determined by the volume of loans they can write, but rather the quality of the loans they submit.

There's no point in submitting loan applications of a sub-par standard and getting a high decline rate, he says. "You can get a bad reputation with lenders that way."

And brokers should aim to achieve quality through commitment: a commitment to submit premium loan applications, a commitment to give clients the highest level of service, and a commitment to succeed.

"We are quite pro-active with our clients, and as we manage projects from start to finish. Therefore, we are involved in understanding our clients' needs, the structures that are required to be in place, and the level of support required even after the loan has settled," he says.

"All of these factors encourage our clients to refer our business to their family and friends."

In fact, Mr Doobov says, having a commitment to quality customer service is all the advertising the business needs: "We get our business through word of mouth referrals and existing customers - I didn't need to spend one cent on advertising last year."

A good broker, he adds, can achieve high turnover simply through taking the time to understand their customer.

"We provide a service based on solutions as opposed to mere product," he says. "A client may be looking for a cheap loan, they may be buying a house, but we look not only at the client's present circumstances but also their circumstances over the next five to 10 years.

"We look at their future as well as their immediate needs and that is what differentiates our business model from our competitors."

WENDY HIGGINS RANK #3

QUALITY MATTERS

The mantra for good business is ‘go the extra mile', according to Mortgage Choice's Elite Business Writer Wendy Higgins

IN HER second year as an Elite Business Writer, Wendy Higgins is taking Mortgage Choice from strength to strength.

In the 2009-2010 financial year, Ms Higgins achieved a massive $141.3 billion in residential mortgage volumes, settling an impressive 562 deals.

Ms Higgins' experience, knowledge, attitude and personal attention to detail have been her key drivers.

"Clients tell me that I explain things in a straightforward manner that they can easily understand. I am very passionate about looking after the client's needs and always thoroughly research what is the best solution for them from our lender panel.

"I really do work 24/7 and don't see my work as a job," she says.

Reflecting on the findings of this year's report, Ms Higgins says she is quite pleased with the result -maintaining her position of last year, in a very healthy third place. "I achieved a personal record in my number of home loan settlements and dollars written," she says.

Much of Ms Higgins' achievement is attributable to her diversifying her business services to introduce life insurance and income protection to her product offering.

Over the next 12 months, however, she is keen to step into a more managerial role: "I intend to work more on my business rather than in it," she says. "With this move, I will be writing fewer loans personally, with the workload shared more equally among my excellent team.

"Compliance will also be a major focus as well as additional diversification," she says.

And when it comes down to the key qualities of a good broker, Ms Higgins says positive personal attributes will ensure they can succeed.

Mental toughness (resilience), connecting with people (heart to heart), passion and purpose (why are we doing this?), vision (planting seeds) and knowledge (confidence and energy) are the most important attributes a good broker should have, she says.

MOSHE MOSES RANK #4

THE CROSS-SELL THAT COUNTS

Leading Elite Business Writer Moshe Moses looks at the benefits of achieving successful cross sales

WITH $50 million in residential mortgages written last financial year, Niche Lending's Moshe Moses knows a thing or two about building a successful business.

One of the key things he has learned is how to differentiate his client service proposition from those of the banks.

Effective cross-sell is at the heart of Mr Moses' proposition. Having included cross-sell products - five, on average - with each one of the home loans he wrote last financial year, he regards add-ons to the basic service delivery platform as a major benefit, both to the client and the business.

"When we cross sell, we aim to deliver a service over and above what the client looks for," he says.

Mr Moses achieved cross sales primarily in life insurance ($25 million) and home and contents insurance ($20 million) last financial year. However, car insurance to the tune of $800,000 was also written in 2009-2010.

"We are adapting to the new regulatory changes and have been getting ready for licensing," he continues. "What has become clear is that a quality broker needs to have qualifications, experience and also the know-how to structure a deal."

Looking to the future, Mr Moses says he's keen to expand the financial planning arm of his business. "We've always had a financial planning side but we took a soft approach to it; now we want to further develop that aspect," he says.

"We now have a qualified financial planner who operates from our office and our aim is to further complement that service with the mortgage broking service we offer."

FRANK TADDEO RANK #5

WITH EXPERIENCE COMES INNOVATION

Finance National Elite Business Writer Frank Taddeo says a lifetime of industry and banking experience has helped him drive his brand

AS A newcomer to this year's rankings, Finance National Elite Business Writer Frank Taddeo is pleased with the results of the report - though not surprised.

"We have flown under the radar until now, but we are a strong organisation that has performed solidly for over 10 years," he says.

And with total finance volumes of $125,801,700 and an impressive 300 deals settled last financial year, Mr Taddeo has demonstrated outstanding resilience in a tough market.

He attributes his success to the strong foundation upon which his business is built.

Mr Taddeo has worked for more than 30 years in the financial services industry and has a wealth of experience in the commercial, business and corporate sectors. "I was the general manager of Citibank before I began mortgage broking," he says.

With sharp industry knowledge and extensive experience, Mr Taddeo has earned professional accreditation with major lending institutions.

Reflecting on the Elite Business Writer report's findings, he says innovation through diversification has been integral to Finance National's success. He adopts a holistic approach to his predominantly investor client base, using superannuation and taxation advice, loan and corporate structuring, as well as investment and cross-sell offerings.

"I don't do mortgage broking for the sake of a loan - I never have and never will," he says.

Rather, Mr Taddeo uses a team of professionals with expertise in financial planning and wealth management, accounting, property investment, shares and funds management, retirement and superannuation, as well as finance, to provide a thorough solution for his clients' needs.

Operating as a privately owned bank, Finance National takes care of all its loan settlements, and Mr Taddeo says this is an area he will look to expand in the future.

"We already have $100 million in place on our books for the next 18 months due to investor interests, but we're also looking to further diversify our offering," he says. "Next year we are going to look at securitisation - essentially providing funds for the banks - and we see this as a key driver."

MORTGAGES IN NUMBERS

• TOTAL MORTGAGE VOLUMES:

$4,220,915,637

• TOTAL NUMBER OF MORTGAGES WRITTEN:

9,951

• AVERAGE MORTGAGE VOLUME:

$66,015,543

• AVERAGE MORTGAGE SIZE:

$358,174

• AVERAGE RESIDENTIAL BUSINESS WRITTEN AS A PERCENTAGE OF TOTAL VOLUMES:

$358,174