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  • Slump hits loans staff

    Slump hits loans staff
    5:00AM Sunday August 24, 2008
    By Alice Hudson

    The Bank of New Zealand is proposing to make more than half its mobile mortgage managers redundant in the face of the continuing property slump.

    A source told the Herald on Sunday bank bosses were proposing to cut the team from 52 to 22 as part of a drive to "increase efficiency".

    Affected staff had been offered counselling and the chance to provide feedback.

    Those made redundant could apply for other jobs, including a new business development manager role. The source said that would effectively be a demotion for affected staff.

    BNZ retail banking general manager Chris Bayliss said the proposed changes were a reaction to the need to restructure retail banking, with customers wanting a "one-stop shop approach".

    Bayliss said the proposal was to have home loan experts (mobile managers) working alongside mobile staff with general banking skills (business development managers).

    The new role would "largely offset" the redundancies but Bayliss could not confirm how many positions would be offered.

    Massey University banking expert David Tripe said the move was probably a reflection of the slowdown in home loans caused by the downturn in the property market.

    Finance workers union Finsec described the redundancies as short-sighted and reactionary.

    Spokesman Andrew Campbell said BNZ had last year reduced administration support for mobile mortgage managers.

    "Our key concern is that the BNZ appears to be moving away from offering dedicated support in relation to a major financial decision for customers - getting a mortgage."

    http://www.nzherald.co.nz/section/1/...ectid=10528680
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    Weeell if the BNZ hadn't stopped using mortgage brokers then this would not have been a problem for them.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

    Comment


    • #3
      Couldn't agree more - although lets face it, those who were 'in' the broking industry back then would share my opinion that brokers stopped using BNZ well before they formally axed brokers.

      In my view, It all started when BNZ were still using brokers, but decided that they could only sell the classic home loan, not the global plus home loan. Ie: if we were to offer BNZ as a potential bank for a client, we had only their substandard offering - to get all the bells and whistles they had to go direct.

      They then wonder why they only get 4% of their business from brokers, when others are getting closer to 30%. Response: We've cut out Brokers to give you a better deal. Reality (IMHO): We've cut out brokers because they were getting you a better deal which didn't involve us.

      Disclaimer: Of course, in the spirit of competition and options for our clients, if BNZ came back, they would be welcomed with open arms.

      Comment


      • #4
        Also I assume they would be in a cycle of discounting, which surely would lead to less income in the long run as well. If I got a rate which was below the market by .5%, when I go to refix, I will look for roughly the same deal.
        Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
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        • #5
          It is rather short sighted in my opinion as the mortgage downturn is likely to be a temporary phenomenon until house prices stablise.

          As an aside, mobile mortgage managers wouldn't have been dealing with brokers anyway, they are the in-house broker-replacement essentially.

          Comment


          • #6
            Originally posted by roseneath_rat View Post
            It is rather short sighted in my opinion as the mortgage downturn is likely to be a temporary phenomenon until house prices stablise.

            As an aside, mobile mortgage managers wouldn't have been dealing with brokers anyway, they are the in-house broker-replacement essentially.
            I think that could be a few years off yet , and prices in some areas haven't even started to drop.

            Comment


            • #7
              That is interesting I wonder if that is why my bank manager there didnt answer my email today??? Still I did say I would ring and I didnt, one of those days you wish you hadnt had never mind will follow up on MOnday and over the weekend on the things I didnt get done.

              think ANZ have had better rates lately though? Still havent looked too hard but will have to think about it might buy another house soon.

              Robyn

              Comment


              • #8
                Originally posted by roseneath_rat View Post
                It is rather short sighted in my opinion as the mortgage downturn is likely to be a temporary phenomenon until house prices stablise.
                Its not really about "house prices stabilising"

                Its about the financial system caught in its growth trap of expotential doubling known as a credit crisis...quadrillions is next after trillions dosnt that all sound a bit ridiculous since the planets economy or GDP is only 3 trillion total?

                Those imbalances from manipulation have to be wrung out of the system first so that true values on things can be known and not assumed...

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