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ISCOVER
Staff Reporter
AFG has cautioned brokers to check on their business partners’ financials following the news that Refund Home Loans has moved to voluntary administration.
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The aggregator’s managing director Brett McKeon said it was now imperative for brokers to put their business partners through a rigorous checklist on a regular basis and see how they stack up.
“Brokers’ customers and trail book are their number one asset. This isn’t something to be put at risk. Questions to be asked of your partner are, for example, how much debt are they carrying? How strong are their relationships with lenders? Do they have adequate Professional Indemnity (PI)? Without adequate PI some players are only a couple of home loans away from going under,” he said.
According to Mr McKeon, the relationship between broker and business partner should be a two way street.
“Just as trust is the cornerstone between client and broker, it should also be the basis of the relationship between broker and business partner. We led the way in the early days and we leave no stone unturned in partnering with the best in the industry. Helping our members succeed is what gets us out of bed in the mornings,” he said.
