NEWS
A G G R E G AT O R S WHISTLEBLOWER PLATFORM LAUNCHED 1,500 brokers are to benefit from a partnership with Your Call that will enable all employees and franchisees to raise workplace concerns through an externally managed, confidential platform. The announcement comes ahead of major legislative changes to whistleblower protections in Australia. COO Stephen Scahill said, “We know the change is coming, but why wait? We support the intentions of the bill and believe it will have a beneficial influence on workplace culture.” LOAN MARKET’S
VOLUMES DOWN, APPLICATIONS UP IN LATEST INDEX Figures from AFG reflect market sentiment, showing application values are down 8% while volumes reached 25,000 in the last quarter AFG quarterly Mortgage Index has praised nonmajor lenders for continuing to meet credit demand through deals facilitated by brokers. AFG lodged $13bn in home lending applications in the final quarter of 2018, down 8% on the previous quarter. According to the firm, tighter credit conditions are having an impact on volumes “in every state”. “In clear evidence of the vital role mortgage brokers play in delivering a competitive home loan market, non-major lenders’ market share is at a record high of 42.1%,” said CEO David Bailey. “The non-majors are becoming an increasingly important part of the assistance brokers provide to THE
6
www.brokernews.com.au
customers. Penetration has increased across all categories of borrowers, with non-major market share gains recorded for refinancers (now 46.8%), upgraders (42%), first home buyers (32.1%) and investors (43.4%).” AFG also issued a warning to policymakers about the importance of ensuring that credit and consumer choice did not become “sacrificial lambs” in the regulatory response to the royal commission’s recommendations. “Customers must be kept first and foremost in any discussion of changes to the financial sector,” said Bailey. “Although overall volumes are down our brokers still lodged more than 25,000 applications during the
quarter. This is a fraction of the number of consumers they help with post-settlement and ongoing reviews and support.” The latest MFAA data shows the mortgage broker market share has reached 59.1%, a record Bailey said was “the strongest evidence that consumers were more than satisfied with the customer service provided by brokers”. “A spike in those choosing to fix their interest rates indicates borrowers are bracing for more bank-led rate rises, with quarterly volumes increasing from 19% to 23.1%,” he added. “Politicians and policy makers should not lose sight of the enormous value Australian consumers place in the services that these small businesses provide. As an industry that relies on customer recommendations, today’s figures demonstrate that consumers are overwhelmingly satisfied with both the service provided by mortgage brokers and the real benefits of competition that we deliver.”
INDUSTRY HEADS DISCUSS CIF REFORMS director and CIF deputy chair Mark Haron has praised the CIF reforms for boosting transparency in the industry. Haron said the CIF’s work met ASIC requirements while recognising the “competitive benefits” of brokers. “With 59.1% of home loan borrowers relying on brokers … we believe that these reforms will provide greater transparency and reinforce brokers’ focus on providing good customer outcomes,” he said. CONNECTIVE
“In our view, aggregators will play an essential role in shaping the broking industry of the future” Brendan Wright CEO, FAST