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Loan Market calls for urgent national summit as service levels dive

Staff Reporter 1 minute read

Loan Market Group executive director John Kolenda has called on the MFAA to facilitate a summit of the major aggregation and lending parties to discuss and address the “untenable” and “unsustainable" blowout in lender service levels.

Lender service levels have become a major issue for third party distributors in recent months with the departure of lenders, tighter lending policies and the first home buyer rush seeing some lenders’ service levels inflate to two, three and even four weeks.

While lenders say they are taking measures to improve service levels little improvement has filtered through to brokers and Mr Kolenda said the time had come for the issue to be addressed on a wider, industry basis.

 “One of the core service propositions for the broking industry has been ensuring that customers receive a high level of service throughout the application process and this is now under serious threat,” Mr Kolenda wrote in a letter to MFAA CEO Phil Naylor.

“The industry has gone through a major structure change with fewer lenders in the market and we need to look beyond reacting to the latest issue and look at examining new ways to operate to ensure high service levels are returned.”

Mr Kolenda proposed the MFAA brought together the top ten aggregation groups and lenders, by volume, with key topics to include effective communication  of service levels and lead times for major policy changes.

Loan Market calls for urgent national summit as service levels dive
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