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THE nation's two biggest banks are rolling out schemes to deal with mortgage brokers, with the Commonwealth Bank's more onerous requirements causing distress among some brokers.
Commonwealth, as revealed in The Australian yesterday, has written to 8000 brokers, telling them they must submit a minimum of four home loan applications and settle a minimum of three loans in a six-month period to remain accredited from July 1.
Westpac has started a similar program, also from July 1, but its target of one loan every six months is less demanding.
Westpac will charge brokers $150 to attend a reaccreditation workshop, compared with a $500 fee levied by Commonwealth.
For a long time, the banks have surrendered part of their profit margins in home lending to mortgage brokers, which originate more than 35 per cent of home loans.
The banks have been trying to improve the efficiency of their dealings with brokers, partly by dealing with fewer, high-volume originators.
National Australia Bank, for its part, has adopted a star system that rates brokers according to a number of factors, including the quality of loans submitted, while ANZ Bank has no minimum performance criteria.
Refund Home Loans executive chairman Wayne Ormond has strongly criticised the Commonwealth scheme, saying it would be reasonable for a customer to ask if a broker was recommending Commonwealth because it offered the best loan, or because the broker was keen to retain its accreditation.
On June 29, Refund lodged a complaint with the Australian Competition & Consumer Commission, alleging that Commonwealth had abused its market power, but the ACCC declined to intervene.
Commonwealth, the nation's biggest home lender, has rejected any suggestion it is seeking to increase its market dominance.
A spokesman said tighter broker accreditation was to ensure customers were serviced by brokers who understood the bank's loans.
Not all brokers oppose the changes in principle.
Read more ...
Jenny
Commonwealth, as revealed in The Australian yesterday, has written to 8000 brokers, telling them they must submit a minimum of four home loan applications and settle a minimum of three loans in a six-month period to remain accredited from July 1.
Westpac has started a similar program, also from July 1, but its target of one loan every six months is less demanding.
Westpac will charge brokers $150 to attend a reaccreditation workshop, compared with a $500 fee levied by Commonwealth.
For a long time, the banks have surrendered part of their profit margins in home lending to mortgage brokers, which originate more than 35 per cent of home loans.
The banks have been trying to improve the efficiency of their dealings with brokers, partly by dealing with fewer, high-volume originators.
National Australia Bank, for its part, has adopted a star system that rates brokers according to a number of factors, including the quality of loans submitted, while ANZ Bank has no minimum performance criteria.
Refund Home Loans executive chairman Wayne Ormond has strongly criticised the Commonwealth scheme, saying it would be reasonable for a customer to ask if a broker was recommending Commonwealth because it offered the best loan, or because the broker was keen to retain its accreditation.
On June 29, Refund lodged a complaint with the Australian Competition & Consumer Commission, alleging that Commonwealth had abused its market power, but the ACCC declined to intervene.
Commonwealth, the nation's biggest home lender, has rejected any suggestion it is seeking to increase its market dominance.
A spokesman said tighter broker accreditation was to ensure customers were serviced by brokers who understood the bank's loans.
Not all brokers oppose the changes in principle.
Read more ...
Jenny