Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Brokers face reduced commissions

Staff Reporter 3 minute read

Belinda Luc

Commission payments will fall in the next 10 years unless the quality of loan submissions improve, an industry executive has said.

According to NextGen director Michael Murphy, a number of funders have scaled broker commissions in proportion to the quality of loan submissions received. He said these reductions look set to worsen as lenders crack down on quality.

However, he believes reducing commissions to improve loan quality is not a good idea.

Advertisement
Advertisement

“That’s one way to try and move it but it’s a very blunt instrument,” he said.

Mr Murphy said improving quality of submissions goes back to reviewing the systems and procedures at the front end of the broker transaction.

“I see brokers going down the path of using a dynamic checklist right at the front end, by the person at the point of sale seeing the client,” he said. Mr Murphy said the checklist would include matters like the required payslips, whether they are more than 3 months old, and so on.

“A new standard will help smooth out commission leakage,” he said.

PROMOTED CONTENT


Brokers face reduced commissions
default
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

default

 

more from the adviser
damian zaleski RYyr k3Ysqg unsplash

Breaking News

GetCapital launches broker platform

The business lender has rolled out a new broker platform, as it h...

fixed rate

Breaking News

Loyalty tax issue flagged to MPs

Brokers are key to holding lenders to account to ensure borrowers...

trade deal contract

Breaking News

Connective launches trail book marketplace

The aggregation group has announced a new arrangement with a spec...