Powered by MOMENTUM MEDIA
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.

Banks?profitability increases pressure on broker commissions

Staff Reporter 1 minute read

Lenders need to radically review their use of brokers if they are to improve profitability, according to JPMorgan and Fujitsu Consulting

Lenders need to radically review their use of brokers if they are to improve profitability, according to JPMorgan and Fujitsu Consulting

“Brokers have retained a disproportionate share of the ‘mortgage profitability pie’ which the banks will not allow to continue in perpetuity,” JPMorgan banking analyst Brian Johnson said.

“Banks are using the current environment to break the status quo of using brokers to boost market share and to reclaim the pricing power associated with the distribution function, such as their branch networks,” Mr Johnson added.

The JPMorgan/Fujitsu Consulting Australian Mortgage Industry Report released yesterday also found that inefficient mortgage practices are increasing the costs of lending– for both lenders and consumers.

Advertisement
Advertisement

“Australian mortgagees are paying up to 35 per cent more than they should in fees because of longstanding inefficiencies in the industry,” said Martin North, managing consulting director of Fujitsu.

“It takes weeks generally to get a mortgage funded, compared with a few days overseas,” he said.

Published 14-03-08 

Banks?profitability increases pressure on broker commissions
default
TheAdviser logo
default
more from the adviser
houseandmoneyrates ‘Don’t rush in’: Risks of new housing scheme flagged

Broker support is critical for borrowers looking to capitalise on...

speed boat ta AFG welcomes specialist lender to its panel

The aggregator has welcomed specialty asset finance lender Austra...

business handshake 2 Finsure expands third-party team, appoints new BDMs

The mortgage aggregator has announced the appointment of new busi...

FROM THE WEB