A statement by the Customer Owned Banking Association (COBA) criticising mortgage brokers’ delivery of customer satisfaction is “laughable”, according to the FBAA.
In its submission to the federal government’s Inquiry into Home Ownership, COBA claimed that brokers often advise customers to take out undesirable loans and “fall a long way short of delivering the best result for the customer”.
“Brokers are only required to recommend a loan that is ‘not unsuitable,’ a far cry from the best home loan for the customer, and possibly not even a particularly good product for the individual,” COBA said in its submission.
FBAA chief executive Peter White said COBA’s comments are toxic and completely inaccurate.
“I am not going to get into a slanging match with them, but what I will say is if brokers are now writing 54 per cent of all home loans and the figure is growing, we must be doing something right,” he said.
Mr White challenged COBA to show just how banks and other lenders offered better service and support to customers than the personal and professional touch offered by brokers.
“It is brokers who brought product diversification and customer service to the lending sector,” he said.
“Without brokers, we would still be stuck in the dark ages of banking and mutuals.”
Mr White also dismissed COBA’s submission claims that brokers are self-serving and work on incentive schemes.
“This is truly a case of the pot calling the kettle black. Consumers dealing direct with a bank are offered just the lender’s product and biased advice, whereas brokers offer a wide variety of lending options,” he said.
“COBA’s submission to the inquiry shows just how desperate they are, as they are clearly losing market traction.”
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