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Jessica Darnbrough
Just days after ING DIRECT hinted the lender could soon increase the amount of trail it pays to its broker partners, one brokerage has said not only will more lenders follow suit but also that broker remuneration should be improved.
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Loan Market Group’s national sales director, Mark De Martino, told The Adviser that brokers are doing more work now than ever before and, as such, they should be remunerated accordingly.
“I believe we will continue to see increases in broker commissions, but, more importantly, I believe brokers deserve them,” Mr De Martino said.
“During the GFC, a lot of lenders cut back in a lot of areas, including their settlement and credit assessment departments, forcing brokers to do more work in order to take each loan to settlement.
“For the last four years, brokers have had to do more work than ever before in respect to getting a loan settled. As such, they should be remunerated appropriately.”
If lenders do increase commissions, it would not be the first time broker payments have been lifted in 2012.
In September, Macquarie announced the bank would lift the commissions it pays to brokers. AFM and Homeloans also both lifted their broker commissions.
Then, earlier this week, ING DIRECT hinted that the lender could soon increase the trail it pays to its broker partners, potentially adopting a ramped trail structure.
One industry source also told The Adviser that Bankwest is currently in the throes of implementing a ‘producer’s bonus’ based on volumes for its accredited brokers.
