Patience amongst brokers is beginning to wear thin.
Mortgage business first reported on sluggish bank third-party servicing levels back in December however it seems some have done little to pull their socks up over the last three months.
Poor servicing levels are the bane of a broking industry that places customer service at the very heart of its value proposition.
For most brokers business is thin on the ground right now, a situation that is likely to continue for the foreseeable future. No one can afford to lose clients due to slow approval times – or worse still, have a string of clients grumbling to friends and colleagues about their broker’s sloppy service.
This is a time of great opportunity for lenders – and not just the majors.
The broking industry has largely accepted the banks’ justifications for cutting commissions. In December the mortgage business q4 sentiment survey revealed that only a minority of brokers believe current commission levels are unsustainable.
Most brokers now recognise that the cost of funds has increased and while no one is happy with smaller up-fronts and trails, the industry has moved on remarkably quickly and set about adapting to the new environment.
And while the banks have clawed back the lion’s share of loan volumes they also have the added luxury of cherry-picking the best business. Over the last few months several lenders have said they will only pay maximum commissions to the brokers that meet their requirements – raising the bar yet higher for the broking industry.
But the push for improved quality should cut both ways.
There should be no excuses from a banking sector that has worked so hard to win market share. Those who now fail to deliver risk losing out to lenders who are lighter on their toes.
Aggregators are highlighting the worst offenders to their members and chronic poor performers run the risk of losing the faith of some brokers for good. Some second-tier banks and non-banks already look considerably more nimble than certain heavyweights. They might just have the chance to win over some disgruntled brokers if things don’t change.