Login
ISCOVER
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.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“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.”
