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Jessica Darnbrough
A majority of mortgage brokers believe the federal government’s comprehensive credit reporting initiative will negatively impact their businesses.
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According to a recent straw poll by The Adviser, 57.8 per cent of brokers believe the new credit reporting system will undermine the broker proposition in one way, shape or form.
Of the 211 respondents, 42.2 per cent believe the new initiative will have no obvious negative impact on them or their business.
Speaking to The Adviser, Connective’s principal Mark Haron said while he could understand why brokers were “dubious” about comprehensive credit reporting, he believes the positives associated with the new system will outweigh any negatives.
“Comprehensive credit reporting will enable lenders to introduce credit scoring a lot more. Credit scoring is always a challenge for brokers because it is often unclear how the lenders score each client,” he said.
“That said, provided all of Australia’s lenders are transparent and the comprehensive credit reporting system is laid out very clearly before brokers, I ultimately think it will be an asset to the industry. Brokers will find it easier to put the right applicant with the right loan and lender every time – improving their conversion ratios.”
Mr Haron’s comments were largely echoed by Choice’s chief executive officer Stephen Moore, who said comprehensive credit reporting “made sense”.
“Comprehensive credit reporting will give lenders and brokers a better understanding of each client, which will ultimately help them put a client in the right loan first time, every time,” he said.
