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Jessica Darnbrough
Ordering upfront valuations cuts turnaround times and increases bank efficiency, one bank executive has claimed.
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Speaking to The Adviser, NAB Broker’s John Flavell said the bank’s decision to award all of its brokers four star status had paid dividends for the lender.
In November 2011, NAB broker announced it would remove its broker segmentation model to give all of its brokers the ability to order upfront valuations, among other benefits.
Mr Flavell said giving brokers the ability to order upfront valuations has proven incredibly successful for the lender as it has helped reduce turnaround times and improve overall bank efficiencies.
“When we first gave our brokers the ability to order upfront valuations, I think a lot of people were shocked and thought it would never work. They thought there would be brokers that would take advantage of the situation,” Mr Flavell said.
“The reality is, the industry has matured a lot and brokers are very professional now. If they can order a valuation upfront, they know exactly what they are working with.
“Sometimes, if the valuation comes back less than expected, we won’t even see a loan application. Brokers are not going to submit a loan that they know will be declined, and because of that we are seeing gains in terms of efficiency and turnaround times.
“If I look at the average turnaround time to unconditional and compare it with our turnaround times two years ago, I can see a significant improvement.
“The number of file re-works has come down, which ultimately benefits us, the brokers and the borrowers.”
