Brokers who want to retain their Westpac accreditation will now be required to meet a minimum loan volume quota.
The bank now expect brokers to submit a minimum of one loan every six months. Brokers who fall below this level will need to attend a re-accreditation half day training session at a “cost recovery fee” of $150 to remain accredited to sell the bank’s products.
Westpac and CBA have both introduced a minimum volume quota for brokers though there are significant differences in their criteria.
From July 1 CBA stated brokers must submit a minimum of four home loan applications with a minimum of three home loans settled within a six month period.
The re-accreditation fee for CBA is $500.
According to Huw Bough Westpac’s new minimum volume requirements were a “fair reflection” of the bank’s overall share of the home loan market share and so should not be an unreasonable target for professional brokers.
“Westpac is here for the long run – we want to partner with brokers who are committed to delivering quality across their business and we will give them our full support, Mr Bough told Mortgage Business.
“We have consulted the aggregation groups throughout this process and will continue to work with them as we implement the new requirements.
Mr Bough believes that there is now a lot more risk associated with doing business with brokers who are not up to speed with Westpac’s products and services.
“We’re not looking for volume we’re looking for quality. What is of paramount importance to us is the customer experience when it comes to Westpac’s service and products.
The lending landscape has undergone a significant change over the last 12 months with most of the major banks now targeting “quality” over quantity.
NAB was the first major bank to take a selective approach to the brokers it chose to do business with through the introduction of its Star Rating system in August 2008.
Earlier this year NAB revised its Star Rating system to reflect limited accreditations for zero and one star brokers – this was extended to two star brokers from July 1.
ANZ remains the only big four bank that has not set any minimum volume quotas for its brokers.
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