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ISCOVER
Jessica Darnbrough
One aggregation head has issued a strong warning to Australia's lenders: stop blaming brokers for poor turnaround times and look at your own servicing levels.
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Speaking to The Adviser, Connective principal Mark Haron said while he recognised that there was still work to be done brokers had made a significant improvement in their loan application conversions and efficiency.
As such, he said the onus is now on Australia's lenders to pick up their game and improve broker service.
"Brokers at Connective and across the industry have really improved their conversion rates," he said.
"The onus is now starting to turn back on to the lenders. They are the ones that threw down the gauntlet and said brokers aren't very efficient. I challenge those statements. We are now very efficient and it is up to the lenders to improve their servicing levels."
Mr Haron said lenders should also be forced to improve their servicing levels across the board and not just to their top brokers.
"NCCP has gotten rid of any part time brokers that were in the industry. So lenders should have complete confidence in the brokers they are dealing with now. They should enhance their service across the mass market."
Mr Haron's comments came just days after CBA's executive general manager, third party and mobile banking Kathy Cummings said there had been little overall improvement in the quality of broker submissions in recent years.
"If you want sustainability in this industry then the economics have to work," Ms Cummings said.
According to Ms Cummings, the level of rework required on broker originated loans remains unacceptably high, with more than 60 per cent of all applications having to be re-worked up to 10 times.
Moreover, just 34 per cent of all CBA funded loans go through to settlement without being touched or re-worked.
Westpac's general manager mortgage broker distribution Tony McRae said broker loan applications often required re-work.
"The brokers need to be careful when filling out loan applications. They must take the time to ensure every 'i' is dotted and 't' crossed," he said.
