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Bankwest and St George are the latest in a list of lenders that have clarified their position on minimum volume requirements.
Bankwest’s head of retail sales Mark Reid told Mortgage Business the lender’s volume requirements were outlined in its broker agreement.
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“We do not enforce minimum volumes, however, we have an agreement with our brokers that they will lodge six applications each year,” Mr Reid said.
According to Mr Reid, conversion rates have become a major issue and as such the bank had started writing to each broker that failed to lodge six applications.
“The letter indicates what areas they perform poorly so that they can directly address these areas. It also highlights exactly how many applications they have lodged with us within a year.
“Those that have lodged less than six will be told to sit a re-accreditation workshop.”
There will be no cost for obtaining re-accreditation.
Similarly, St George is also asking its brokers to sit a “free re-accreditation exam” every 12 months if they settle less than four loans in a calendar year.
St George’s head of broker channel Steven Heavey told Mortgage Business that since 2008 accreditation has been valid for a maximum of 12 months.
“Accredited individuals that settle four or more loans automatically have their accreditation period extended for an additional 12 months,” Mr Heavey said.
Mr Heavey said the rationale for making accreditation expire every 12 months is because product, price, policy and process are constantly changing and the specialist knowledge required by brokers can become out of date quickly.
“In a regulated environment this lack of recent knowledge is an operational risk and can result in an inferior customer experience,” he said.
Mr Heavey also said the bank was considering the benefits of contractual relationships with brokers.
“Minimum volume levels at the company / aggregator level are confidential, but as a guide, a new distribution partner will need to show evidence that they can settle approximately $200 million per annum in total new business before we will entertain the idea of a contractual relationship.”
