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NAB raises bar for brokers

Staff Reporter 2 minute read

Banks continue to rationalise their third-party partners as part of a push towards better quality and efficiency and as a result of a more limited funding environment.

NAB Broker is the latest lender to announce changes to its broker accreditation system.

Yesterday the bank said it will raise the bar in terms of the requirements expected from brokers if they are to write NAB products.

As of 1 February, NAB will introduce a “Limited Accreditation” designation within its star rating system whereby brokers with ratings of zero or one star will receive limited rather than full accreditation.

Limited accreditation will also apply for two star brokers from 1 July.

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Brokers with limited accreditation will no longer have applications for new clients accepted and will only be able to lodge variations or new applications for existing clients.

John Flavell, NAB Broker head of broker sales, said the initiative supported brokers who lead quality practices and are dedicated to submitting quality business.

“It is important that as an industry we move towards best practice and help further develop the quality and professionalism of brokers,” he said.

NAB Broker announced its star rating system in May last year. Under the system brokers’ commissions are determined by application quality, portfolio performance plus education and professional development.

Lenders look set to continue to streamline their distribution channels and become increasingly more selective over who they deal with and the standard of business they accept in the year ahead.

NAB Brokers’ changes come on the heels of those announced by Suncorp at the end of last year.

Under Suncorp’s changes, “Non-Target” brokers will no longer attract upfront commissions.

“Target” brokers will be those with “good, longstanding relationships” with the bank who write “quality” and “persistent” business, a Suncorp spokesperson told Mortgage Business.

Full upfront commission for “Target” brokers will also depend on the client having a direct debit transaction account established with the bank.

“All banks are doing business with a smaller number of brokers due to the credit environment”, the spokesperson said.

BankWest is another lender to have limited its broker partners.

In May last year the bank reduced its third-party partners from 59 to just 17 citing improved distribution efficiency and broker relationships as grounds for the changes.

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NAB raises bar for brokers
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