Some lenders’ poor servicing levels are costing them broker business, Mortgage Business’ latest straw poll has revealed.
Of the 472 respondents to the poll a massive 96 per cent agreed that lenders’ turnaround times had directly influenced their recommendations to clients on where they should secure their mortgage.
Two, three and four week turnaround times have not been uncommon in recent weeks as the major lenders battle a substantial increase in broker business.
While lenders claim to be working on improving efficiencies, brokers are becoming increasingly infuriated and frustrated as better turnaround times remain yet to be seen from some lenders.
Kym May, director of Platinum Finance Solutions in Adelaide, said he would no longer direct business to one particular bank because their sluggish service had cost him one customer already.
“We understand there is a volume issue and lenders are under pressure, but when it starts to affect our business and put our brand at risk, then that’s unreasonable,” Mr May told Mortgage Business.
“We are a customer-centric business and we do not like missing settlement,” he said.
Kevin Lee, a Smartline franchisee, expressed similar concerns about the impact poor turnaround times were having.
“It makes our business look like the bad guys,” he said.
Jason Basseal, a Loan Market Broker, said that while he hadn’t stopped dealing with any lenders, he would warn clients off the ‘slower banks” and direct them towards those offering better service levels.
“Poor service levels have in turn affected my efficiency and ability to deliver reasonable turnarounds for my clients,” he said.
“If a client chooses to go with a lender knowing their turnaround will be slow, then that’s fine. But I need to manage their expectations.”
The blowout in service levels is now set to become the subject of an industry forum organised by the MFAA and attended by the six largest aggregation groups and key lending stakeholders.
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