Bank Minimum Volume Enforcement on Brokers

Tue, 2009-08-04 15:18 — Guest

We are concerned at recent announcements by certain banks indicating they plan to enforce minimum volume requirements on brokers in Australia.
The announcements are indicating that if brokers do not maintain lodgements of a certain number of applications with the lender that convert to settlement in a given time frame, then the broker will lose their accreditation with that lender and may be required to pay the lender to become re accredited with that lender.
This announcement follows last years dramatic reduction in commissions paid to brokers by most lenders.
This would be all well and fine if those lenders were always offering the best deal for every customer, all of the time, and keeping customers satisfied with excellent ongoing service. We have experienced lost customers in the past through absolutely no fault of our own due to customers being dissatisfied with the attitude or level of service from lenders, and the lenders claw back our commission as a result!
We use software to help our customers find home loans from potential lenders which helps our customers choose which lender and loan they would like us to help them apply for.
This minimum volume policy will not be changing the way we do business with our customers and if it comes about that we lose our accreditation with certain lenders because our customers are not choosing them for whatever reason, well so be it.
As borrowers and customers please take time to check why a certain lender is being offered to you above all others or why any brokers out there may no longer be offering products and services from specific lenders any more.
We refuse to operate any other way, if the lender is offering competitive products and good customer service then they will be the lender chosen by the customer and get the business without needing to impose minimum volume restrictions on the broker. After all it is always the borrowers choice. As a borrower, ensure you are informed and choose well. If you are unsure of anything - always ask.