FirstMac fights back against unacceptable lending service levels
Australian-owned, mortgage finance lender FirstMac has launched an attack on the deterioration of delivery levels offered to brokers since the First Home Owners Grant (FHOG) boost and subsequent extension was confirmed by the Federal Government.
FirstMac is fighting back against unacceptable lending service delivery delays and poor processing turnaround times from the banks that are slowing the release of capital into the market. The $1.5 billion boost to the first home owners grant announced in the budget earlier this month was aimed at stimulating the flow of credit in the economy.
FirstMac Chief Executive Officer Kim Cannon said the reality experienced by brokers trying to provide mortgages for all potential home buyers has been one of frustration as the big banks? processing times get longer and longer.
“Brokers and buyers alike are taking a beating from the banks who are taking up to 3 weeks to look at a loan,” Mr Cannon said.
“FirstMac has made a commitment to ease brokers? suffering due to the credit hold-up handcuffs the banks have the industry in,” he said.
“It is not rocket science what we are doing, we are just taking the industry back to the grass roots of real service - which ensures loans get processed and transitions get completed.
“Brokers who come to FirstMac instead can be assured of faster turn around times for their home loan applications, rather than waiting weeks for the banks to even get around to looking at their deals.
“We commit to brokers who submit a fully completed loan application that they will receive preliminary approval within 24 hours during the business week and we will provide loan documentation within 24 hours of unconditional approval.
“Experienced, local service people ready to process deals and take calls underpin FirstMac’s commitment to brokers and their clients.”
“We are at the other end of the spectrum when it comes to talking with brokers as we don?t use complicated phone automated speech recognition systems and prompts, like those offered by some of the banks.
“Banks are running a two-speed service level. Apply for a loan directly through the bank and the branch will push through the application processing. But if you decide you will be better off to deal through a broker and apply for a bank provided home loan, the bank will treat you like a second-class customer.”
“The release of our FightBack 2.99% fixed-rate mortgage has offered brokers a product with real service and a competitive alternative in a market dominated by the major banks,” Mr Cannon said.
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Scott Beattie May 28, 2009
“The release of our FightBack 2.99% fixed-rate mortgage has offered brokers a product with real service and a competitive alternative in a market dominated by the major banks,” Mr Cannon said.”
While that there is no doubt that this is a good rate, we need a product without such a sting in the tail.
To save for the 1st year, then revert to around 5.6% with a sliding scale from 2% - 1.2% in exit fees is not a competitive product. Just give us a good rate across the board, don’t worry about the 1 year lower rate - especially if it comes with such high exit fees.
I want to support the non banks, but I don’t think that this is a product to suit most people.
Hellman