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Industry consolidation to improve quality of deals

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James Mitchell 5 minute read

The broking head of one of Australia’s largest non-bank lenders believes that the consolidation of smaller players will lift the quality of mortgage applications.

Admitting that the quality of submissions from brokers has “always been a bit of a mixed mag”, Homeloans general manager of third-party distribution Daniel Carde said that he feels for brokers who have had to deal with ongoing pricing and policy changes.

“It has to be tough for brokers keeping up with so many changes across all the different lenders,” Mr Carde told The Adviser. “Our submission quality is generally pretty good.

“I think where we will see that improve is around some of the consolidation we are seeing in the market where you have some of the smaller brokerages or the new-to-industry brokers joining forces to share resources, whether that’s loan processes or customer service personnel.


“As those groups continue to grow, they will leverage off each other’s expertise and, as an industry, we will only get better because we will pool our resources.”

Mr Carde’s comments come after increasing pressure from lenders to lift standards in the third-party channel. CBA recently announced that from the first quarter of 2018, new mortgage brokers will be required to hold at least a Diploma of Finance and Mortgage Broking Management, have at least two years’ experience writing regulated residential loans, be a current member of either the MFAA or FBAA and be a direct credit representative or employee of an approved aggregator or Australian Credit License (ACL) holder.

While the changes have been met with mixed feelings among mortgage brokers, Mr Carde believes that the educational requirement is sufficient, particularly for new brokers.

“You need a certain educational background, [and] there is mentoring required for a certain period of time. I think the entry level is high enough,” the GM said.

“But I think the key to it is the more experienced brokers taking on the newer brokers and building our future. Bringing the fresh blood through the industry.”


[Related: Top broker ‘applauds’ CBA accreditation changes]

Industry consolidation to improve quality of deals
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.



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