Loan Market Group calls for urgent national summit for major Lenders and Aggregators

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In recent months the lender service levels for broker introduced customers have become untenable and more importantly unsustainable for our sector.  One of the core service propositions for the broking industry has been ensuring that customers receive a high level of service throughout the application process and this is now under serious threat.

To date, these issues have been addressed in isolation between individual aggregators and lenders but the reality is that it needs to be addressed on a wider basis.  We are currently in a situation of a cycle of repeated service failures as policy is adjusted or brokers move their customers away from the trouble spots only to create new issues.

The industry has gone through a major structural change with fewer lenders in the market and we need to look beyond reacting to the latest issue and look at examining new ways to operate to ensure high service levels are returned.

To this end we believe that the MFAA should facilitate a Summit of the Top Ten Aggregators & Lenders (by volume) to discuss the key issues concerning the sector.

Although the Summit is in some ways a meeting of competitors, it’s our respective end-customer that is impacted and that leads to issues, complaints and ultimately customer retention issues.

Our proposal is that we brin together the key representatives from both lenders and aggregators to meet and discuss sustainable solutions for operating in the environment.  The key topics should include but are not restricted to:

  • Effective communication of current service levels – publication of service levels, options for centralised access to service levels for brokers, standardising escalation mechanisms & use of the aggregator management structures.
  • Lead times in major policy changes – timings for implementation
  • Valuation issues
  • Efficient processing of pre-approvals – the use/misuse of pre-approvals, levels of assessment and use of technology
  • Options for broker support in the processing pipeline – ordering of CRAA’s & valuations, printing and delivery of loan documentation
  • Compliant management – settling issues quickly before they reach the Ombudsman, managing channel conflict

The Summit also provides an opportunity for this group to look at the implementation of the forthcoming national legislation which we will all be operating under.

It is our belief, if we continue to address issues in isolation and reactively, then we simply move the volume bubble on to another series of lenders which creates further service issues.

The current situation of missed purchase deadline, repeated finance extensions and applicants waiting up to 20 days before their application is assessed is to the detriment of all parties involved in the process, particularly the borrower.

Phil, we believe the MFAA needs to bring the key lenders and aggregators together, as a matter of priority, to facilitate this discussion and Loan Market Group are happy to assist by providing a venue or other resources as required.

I look forward to discussing this with you directly.

The above is a direct transcript of a communication sent to Phil Naylor (MFAA) by John Kolenda at Loan Market Group.

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12 COMMENTS

  1. what a pity mfaa executive has not thought of this in the first place, instead of flaunting our subscriptions being spent on golf days and piss ups!

  2. About time. Service levels are BEYONG ridiculous now.

    This is also a telling time for the MFAA to see if they do really support the brokers or just a mouth front for the big lenders.

    Quick message to the MFAA – stand up now and be counted or fade into irrelevance within the broker network. The choice is yours !!

  3. This is well and truly overdue and am sure would be supported by most brokers. It would hopefully bring about a result that provides an acceptable level of service to the clients by the lenders, and provides brokers with more control/information over the approval process.

    It is unacceptable that a client could potentially miss out on a property due to bank processing times, or that Brokers are required to wear an ever increasing administration cost servicing client applications due to bank inefficiencies and policy changes mid application, for less revenue.

    We need to get together and demand acceptable level of service from the lenders to ensure we can provide the same for our clients, and the MFAA should be in full support of this goal.

  4. I am sceptical about this forum however if you read the other industry web site, this was already being implemented by the MFAA and the same was communicated to John Kolenda. I guess the opportunity for him to Grand Stand was just all too enticing considering his poor personal perception and profile.

  5. Here here, about time too, let’s hope the Heads of the Major Aggregators can bring the Major Banks to account & to improve this ridiculous situation that we as Brokers are trying to exist in. It is untenable & more so immoral on the Major Bank’s parts. They should understand there are clients at the end of this process that is being damaged as well as our reputations!!!

  6. The idea of debate is good, but do you think lenders will mutually come to listen? They will show up with stats from status tracking websites, contorted by so called “missing information” with event dates falsely entered. Bank executives have always stated their systems are world class, and it’s the brokers that need to improve. Remember when they said that online lodgement would enable 4 hour turnarounds? Lets have the conversation, but let’s send in some real loan writers with the aggregation heads.

  7. Another point is, if the lenders really, really wanted to improve turnaround times, they would have.

  8. Excuse me for feeling a bit sceptical about this. What….. the 10 top lenders and the ten top aggregators. Come on….. they are already in bed together. The biggest lenders already own some of the biggest aggregators.

    I do agree that the top ten and the bottom ten with equal representation might get a better result.

  9. Please……. this will amount to nothing. Its up to Aggregators to suspend the banks from their panel if they do not meet their SLA obligations to our customers. If they don’t then perhaps brokers should suspend the Aggregators! Its the only way we will achieve anything. If your still putting deals to the big 4 then your crazy. Id rather loose one or two clients and send them to a branch then loose all my clients after 3 weeks of hard work and repeated phone calls ( all ignored ) Much more cost effective. If I have to dump my Aggregator to do it so be it. What we now amount to 20% of the loan business? lets take it elsewhere. What other profession gives clients to its own competitor ???? NONE !!!!!

  10. BANKS WANT BROKERS OUT OF THEIR MARKET SPACE. THIS IS CLEAR.

    VOTE WITH YOUR FEET AND TAKE THE BUSINESS ON MASS TO NON BANKS.

    IT IS THE ONLY THING THEY LISTEN TOO.

    Talking to the bank on this topic is like talking to the Fox whose in charge of the Hen house.

  11. this is plain to see but has anyone looked at say the broker sla’s and say one of the ‘self employed broker’ models that one of the banks now have. one channel 22 days the other 4 days – who is getting CONNECTED up in this scenerio. if anyone has some good non bank lenders please let me know but from what i can see the LVR’s for the ‘smaller’ places is getting near impossible.

  12. My husband loves to write and he love sports?He needs a part time job so he was wonder if he can get paid doing what he love. How can he get paid blogging or writing about sports?. Thanks,He love and know allot about soccer or futball,and american football..

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