Australian Broker 11.18

SEPTEMBER 2014 ISSUE 11.18

$4.95 POST APPROVED PP255003/06906

+INSIDE + NEWS ROUNDUP A look at what’s been making headlines P6

+ SPECIAL REPORT AMA PREVIEW

A look at some of the finalists for the Australian Mortgage Awards P12

+ OPINION COSL GOT IT WRONG

A credit repairer comes to the industry’s defence P18

+ MARKET TALK NO TIME FOR PANIC

Clive Kirkpatrick:

BECOMING THE VANGUARD OF TECHNOLOGY St.George’s general manager of mortgage broking says the bank wants to leverage technology to make life easier for brokers

B

rokers consistently tip turnaround times and service as the most important factors in their choice of a lender. Being able to get a deal through quickly and efficiently is vital to brokers’ businesses.

St.George general manager of mortgage broking Clive Kirkpatrick says he understands, and wants to be at the forefront of leveraging technology to make turnarounds quick and efficient for brokers.

FULL STORY PAGE 20

Perth is facing a slowdown, not an emergency P22

+ COALFACE SLOW AND STEADY

Mark Ballard says success is about consistency P23

+ CAUGHT ON CAMERA AFG honours excellence P29

NEWS 2

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NUMBER CRUNCHING NATIONAL HOUSING AT A GLANCE

DID YOU KNOW?

Best performing capital city

Weakest performing capital city

MELBOURNE +6.4 PER CENT

HOBART -0.8 PER CENT

Most expensive city

Most affordable city

36%* *According to investment management company Dalton Nicol Reid, 36% of Australian companies saw their profits beat market expectations, while 23% missed market expectations

HOME LOAN BREAKDOWN

August home value results

Home loan demand for August

1.2%

INTRODUCTORY RATE

24.2%

FIXED RATE

12.5%

BASIC VARIABLE RATE

FAST FACT

195,227* SYDNEY WITH A MEDIAN DWELLING PRICE OF $650,000

Source: Dalton Nicol Reid

HOBART WITH A MEDIAN DWELLING PRICE OF $310,000

2.9%

LINE OF CREDIT

38.7%

ONGOING DISCOUNT

Source: RP Data/CoreLogic

20.5%

STANDARD VARIABLE RATE Source: Mortgage Choice

*Number of new home approvals in the 12 months to July Source: ABS

WHAT THEY SAID...

IAN RAKHIT

“Our broker partners have been talking to me about the value of year one trail, so I’m delighted we are able to use this trial to test their appetite” P6

PETER WHITE

“With the current interest rate movements and legislative tightening around the NCCP, now is a great time for brokers to learn how to maximise their revenue” P8

SAM WHITE

“This is no longer now just a profession. It’s an industry brokers create goodwill in and value in” P26

BRENDAN WRIGHT

“We want to attract more female brokers to the FAST network and we want our female brokers to be the industry’s most successful” P28

NEWS 6

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Banks jockey for position with commissions

CBA TAKES BIGGEST SHARE OF WALLET

EDITOR Adam Smith PUBLISHER Simon Kerslake

■ Two non-major banks recently announced commission

■ The average Australian customer of

the major banks deals with at least four financial institutions across their full range of financial products and services – which indicates Aussies aren’t that loyal when it comes to banking. However, CBA has the most loyal customers of the four majors when it comes to both the share of customers’ financial products and financial dollars held.

Across the big four banks, CBA holds the largest share of consumers’ banking and finance products, holding over a third (37.8%) of its customers’ products. Westpac is second best, holding a 32.8% share, followed by ANZ (29.9%) and NAB (27.8%), according to the research conducted by Roy Morgan Research. Products include accounts, cards, loans, insurance, superannuation and managed funds.

In terms of holding consumers’ dollars, CBA also leads the group, holding around a third (34.3%) of its customers’ wallets.

NAB came in second with 33.2%, followed

by Westpac (32.3%) and ANZ (28.8%).

incentives for their broker networks.

Bankwest has announced a new trail commission incentive for deals below 75% LVR. For a three-month period, the lender will pay bonus trail while still paying 70bps upfront trail.

The initiative sees the bank instituting Year 1 trail of 5bps for loans up to $350,000, 10 bps for loans up to $500,000, and 15bps for loans above $500,000.

“With rates as low as 4.74% p.a. (comparison rate 5.13% p.a.) for a loan amount over $750,000 and less than 80% LVR on our Complete Home Loan Package, Bankwest is growing its share of lower-LVR business. Our broker partners have been talking to me about the value of Year 1 trail, so I’m delighted we are able to use this trial to test their appetite. The trial will run for three months and I’m open to continuing this for longer,” Bankwest head of retail brokers Ian Rakhit said.

AMP also launched a new incentive that could see brokers earn an additional 20bps of commission. All new loan applications – including those for increases – received between 25 August 2014 and 30 November 2014 and settled between 1 September 2014 and 31 January 2015 will receive an additional 20bps of upfront commission.

The promotion applies to all its products, excluding its Affinity Package and Affinity Basic Package.

Driscoll departs Mortgage Ezy ■ Non-bank lender Mortgage Ezy

WALLET SHARE MAJOR BANKS’ SHARE OF CUSTOMER FINANCIAL PRODUCTS

CBA Westpac ANZ NAB

37.8% 32.8%

29.9% 27.8% Source: Roy Morgan

has announced that CEO Garry Driscoll will be leaving the organisation to pursue other interests outside of the mortgage industry.

In more changes to the executive team, the company has appointed Steven Kyling as head of credit.

Kyling has had a long career in finance and will bring a wealth of knowledge, skill and expertise to the lending team.

New products are also set to accompany the new management, as Mortgage Ezy executive chairman Peter James advised that the group was on the verge of introducing some new initiatives.

“We have kept a low profile in the last few years, but over that period we have completely rewritten our mortgage management software and systems and have redefined our back-office processing. We see the next 12 months as an exciting growth period for Mortgage Ezy.”

COPY & FEATURES JOURNALIST Julia Corderoy PRODUCTION EDITORS Roslyn Meredith, Moira Daniels ART & PRODUCTION DESIGN MANAGER Daniel Williams DESIGNERS Kim Tomacruz, Kat Vargas SALES & MARKETING SALES MANAGER Simon Kerslake ACCOUNT MANAGER Rajan Khatak MARKETING EXECUTIVE Alex Carr TRAFFIC MANAGER Maria Katsiotis CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Adam Smith tel: +61 2 8437 4792 adam.smith@keymedia.com.au Advertising sales Simon Kerslake tel: +61 2 8437 4786 simon.kerslake@keymedia.com.au Rajan Khatak tel: +61 2 8437 4772 rajan.khatak@keymedia.com.au Subscriptions tel: +61 2 8011 4992 fax: +61 2 9439 4599 subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Auckland, Toronto, Denver, Manila brokernews.com.au

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss.

Australian Broker is the most-often read industry publication, according to independent research carried out by the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia in December 2008.

The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.

Garry Driscoll

NEWS

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White: Broker issues transcend associations

WORLD NEWS UNITED STATES OF AMERICA FEDS FINALLY GO AFTER BIG FISH

A US government task force plans to bring a civil suit against Angelo Mozilo, co-founder of Countrywide Financial Corp., according to a Bloomberg report.

The government abandoned a criminal case against Mozilo three years ago, but is now looking to sue Mozilo and up to 10 other Countrywide employees.

Countrywide’s sales of shoddy mortgage-backed securities helped kick-start the crisis. Mozilo has already paid a $67.5m penalty to the Securities and Exchange Commission (SEC), in a 2010 deal.

Between 1999 and 2008, Mozilo made $535m. The comparison between the SEC penalty and Mozilo’s net worth fuelled criticism that the architects of the GFC were mostly untouched by the meltdown, according to Bloomberg.

CANADA CANADIANS STRESSED BY DEBT

A new Bank of Montreal report says Canada’s levels of personal debt are a real concern for many, especially the younger demographic. Those aged 18–34 say they are most ashamed of their debt levels, with 60% saying it’s a major personal issue.

Those in the next age group, 35–54, have the highest levels of personal debt, averaging more than $92,000. The ‘boomers’ of over 55 still often have growing debt to pay for their children’s weddings or house purchases. Average debt in the next year is predicted to grow by almost $20,000.

■ FBAA president Peter White has argued that the

issues facing mortgage brokers transcend ties to an industry association.

White is urging the entire industry, not just FBAA members, to come together and discuss the issues, challenges and triumphs affecting the financial services industry at the FBAA’s upcoming conference on the Gold Coast. White has labelled the conference “a landmark moment”.

“With the current interest-rate movements and legislative tightening around the NCCP, now is a great time for brokers to learn how to maximise their revenue Peter White and service customers in new ways,” he said.

The one-day conference is themed “Transform your thinking” and is set to challenge and encourage brokers and other finance professionals to think in ways that will build their businesses and the industry.

“Our aim is to show finance professionals that there are more opportunities for their businesses than what they may be doing now. We’ll be encouraging them to ask ‘what if?’ and leave with the resolve that ‘I am going to do’ or ‘I can be’,” White said.

The conference will be held at Sea World Resort on Queensland’s Gold Coast on November 14.

DID YOU KNOW?

Aussie banks warned over interest-only lending ■ Moody’s has issued a warning to Australian banks over

16.6%

Non-major banks increased their share of the mortgage market by 16.6% in the year to June 2014 – doubling the 8.2% increase experienced by the major banks Source: APRA

higher-risk loans.

New data from APRA has shown that interest-only (IO) loans made up 43.2% of new loans in the latest quarter, while investment loans have risen to 37.9% from 32.6%. The result prompted Moody’s senior credit officer Ilya Serov to warn that the loans could carry a high risk for banks.

“Although investment and IO loans performed well during the global financial crisis, they inherently carry higher default probabilities and severities, and a larger proportion of such loans risks leading to higher delinquency levels for Australian banks at times of stress,” Serov said.

Serov argued that interest-only loans were more exposed to rate rises than principal and interest loans.

“Our expectation that interest rates in Australia will rise over the next 18 months means there is an increased likelihood of a payment shock for these borrowers at the end of the initial IO period,” Serov said.

NEWS

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Aussie lenders not afraid of subprime – Moody’s ■ Ratings agency Moody’s says Australian lenders have

issued $3bn worth of non-conforming home loans over the last 18 months.

It is becoming increasingly popular among Australian lenders to fund subprime mortgages by selling residential mortgage backed securities (RMBS).

Moody’s analyst Robert Baldi said Australia was leading the subprime mortgage market.

“Since the beginning of 2013, we’ve seen 10 new transactions in the RMBS market from non-conforming issuers and that’s totalled about $3bn, so that’s quite a pick-up in volume considering the market did shut down post the crisis in 2008,” Baldi said.

Baldi added that non-conforming loans have made up about 7% of RMBS transactions in the year to date and that most non-conforming loans were being written by non-bank lenders.

He is confident, however, that Australia has enough regulation in the NCCP to avoid any subprime-afflicted crisis.

Major bank gives boost to brokers in FSI submission

Non-majors face ‘entrenched disadvantage’

■ Australia’s most profitable bank, Commonwealth

Bank, says mortgage brokers play a key role in ensuring a healthy and competitive market for consumers.

In its interim report, the Financial System Inquiry (FSI) recognised the impact vertical integration could have on competition. “[Submissions argue] the major banks can cross-subsidise products to drive out competitors in some markets. Submissions also argue that the major banks’ market power has led to oligopolistic competition and higher prices for consumers.”

However, in its final submission to the inquiry released on Friday, CBA said it was mortgage brokers who ensured that vertical integration in the banking system didn’t impact on healthy competition in the home loan market, or impact negatively on consumers.

“The higher percentage of home loans directed to smaller lenders by mortgage brokers compared to the percentage of loans sourced directly by smaller lenders indicates that integration has not had a negative impact on competition, and has not distorted the way in which mortgage brokers direct borrowers to lenders.

The mortgage broker proposition continues to see this channel account for a growing share of all mortgage flows, despite ongoing vertical integration in this sector,” the bank said.

“In addition, the increased flow of home loans directed to non-major banks by mortgage brokers is indicative of price competition delivering better outcomes for customers.”

■ Suncorp Bank has argued in its

FAST FACT

$1.9bn Value of credit applications flagged by Veda for potential fraud in the last financial year Source: Veda

second submission to the Financial System Inquiry that the rules around risk weights and capital adequacy create an “entrenched disadvantage” for the non-majors.

“As a regional bank, Suncorp Bank is required to hold up to three times the level of capital of the major banks against equivalent portfolios with the same underlying risk. This makes clear the competitive differential driven by the regulatory settings. It also highlights the barriers to entry in banking created by the onerous capital and regulatory environment for non-major banks.”

Under the current requirements, major banks are able to adopt an internal ratings based (IRB) risk weight approach, which allows them to have lower risk weights for mortgage lending than the standardised risk weights that smaller banks have to obey.

The Customer Owned Banking Association argued in its second submission to the inquiry that Australia needs to either catch up with the rest of the world in increasing the minimum capital obligations under the IRB approach, or reduce the standardised approach.

In a response to the inquiry’s interim report submitted on behalf of four regional banks – Bendigo and Adelaide Bank, BOQ, ME Bank and Suncorp Bank – APRA has been urged to step up and take some responsibility to assist regional banks in attaining IRB accreditation.

Australian Mortgage Awards 2014 Australian Broker takes a look at some of the finalists for the industry’s top honours, the Australian Mortgage Awards

E

ach year the Australian Mortgage Awards bring together the industry’s finest, honouring top achievers in mortgage broking. The awards recognise brokers and brokerages for their outstanding achievements, and winning an AMA continues to be the most prestigious honour in the industry.

This year’s AMAs will be held on 17 October at Town Hall in Sydney, with Westpac Broker Distribution again serving as event partner. Australian Broker is pleased to present the finalists in some of the categories highlighting mortgage broking excellence. For the full list of finalists, keep an eye out for MPA 14.10.

SPECIAL REPORT

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BROKER OF THE

YEAR INDEPENDENT

13

This award recognises extraordinary performance in 2013/14 exhibited by independent brokers.

The winner of this category will become a finalist for Australian Broker of the Year

Raymond Xue ACA Mortgage Solutions

Key criteria included responses from the readers of Your Investment Property magazine and YourMortgage.com.au, input from aggregators, brokerages and brokers themselves and figures such as loan volume, percentage growth year over year (2012-13/201314), quality of submissions, conversion rates and overall customer service.

Justin Doobov Intelligent Finance

FINALISTS

Mardee Thomas 1st Street Home Loans

Peter Gwynne Financing Property Xavier Quenon Go Mortgage

Colin Lamb Mortgage Solutions Australia Anthony Albakov My Mortgage Freedom Theo Chambers Shore Financial Simon Orbell Smartmove Mark Davis The Australian Lending & Investment Centre

A LOOK AT THE NUMBERS Of the 10 finalists in this category, seven were in last year’s MPA Top 100 list with combined settlements of $808,274,886

$808,274,886

LAST YEAR’S WINNER SAYS . . .

CLIENTS LOVE [A FULL SERVICE PROPOSITION].

IT DRIVES RESULTS, AND I THINK THAT’S BEEN PROVEN TONIGHT - C OLIN LAMB, MORTGAGE SOLUTIONS AUSTRALIA

SPECIAL REPORT

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This award recognises extraordinary performance in 2013/14 within the franchise system. The winner of this category will become a finalist for Australian Broker of the Year.

PEPPER BROKER

Key criteria included loan volume, quality of submissions, conversion rates and overall customer service.

OF THE

Peter Ellis Century 21 Home Loans

YEAR NONCONFORMING

Peita Davies Choice Home Loans Blue Mountains

FAST FACT

1,361* *Total number of nominations for this year’s Australian Mortgage Awards, a 15% increase on last year

“Pepper is a pioneer of the Australian specialist mortgage sector and is one of Australia’s leading non-bank financial institutions. Pepper primarily focuses on providing home loans to customers who do not meet the acceptance criteria of banks, and other lenders, in particular the self-employed, small business owners and borrowers with irregular income, an unsubstantiated savings history or a prior record of minor credit impairment. Pepper offers a genuine financing alternative to prime quality borrowers who are typically denied access to residential mortgage finance due to restrictive lending criteria.”

FINALISTS

Stuart Styles Arthurmac John Parsaskevas Faraday West Giulio Avian Funds National

David Wegener Club Financial Services Norwood Alex Lambros LJ Hooker Home Loans Sydney Eastern Suburbs

OF THE

YEAR FRANCHISE

Josh Bartlett Loan Market Jason Basseal Loan Market Cathy Anderson Smartline Blackwood Phillip Elliott Yellow Brick Road

This award recognises standout performers in the non-conforming category. The winner of this category will become a finalist for Australian Broker of the Year.

Key criteria included conversion rates, and to a lesser extent volume.

BROKER

FINALISTS

BROKER OF THE YEAR - FINANCE This award has been designed to recognise the standout mortgage brokers who specialise in commercial real estate, investment finance, SME/debtor finance, asset & leasing finance. The winner of this category will become a finalist for Australian Broker of the Year.

LAST YEAR’S WINNER SAYS . . .

Key criteria included loan volume, percentage growth year over year (2012-13/2013-14), quality of submissions, conversion rates and residential to commercial lending ratios.

FINALISTS

Josh Bartlett Loan Market Mardee Thomas 1st Street Home Loans Daniel Green Green Finance Group George Samios My Address Finance Tom Caesarowicz Positive Lending Solutions

Genene Ethell Non Conforming Loans

Mark Davis The Australian Lending & Investment Centre

Graham Reibelt Oasis Mortgage Group

Diana Liu Wealth Connected

Melanie Burns Sherlock Holmes Lending Solutions

Greg Wells Wells Partners/Mortgage Link Group

THE MOST UNIQUE THING WE DO THAT’S HELPED US THROUGH IS HAVING THE DIVERSITY OF THE PRODUCT SUITE WE’VE GOT, RANGING FROM RESIDENTIAL, COMMERCIAL, ASSET FINANCE AND SELF-MANAGED SUPER FUNDS

- M OSHE MOSES, NICHE FINANCIAL GROUP

SPECIAL REPORT

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COMMONWEALTH BROKER OF THE YEAR PRODUCTIVITY

This award has been designed to recognise the standout mortgage brokers who focus on productivity improvements through increased office efficiencies and quality submissions. The winner of this category will become a finalist for Australian Broker of the Year.

Key criteria included percentage of applications submitted and proceeds without questions or delays, percentage growth year over year (2012-13/2013-14), percentage of applications approved for funding and handled without escalations.

The Quality Young Gun of the Year (Franchise) award will be presented to the rookie who obtained excellence in their first two years of operation in the mortgage industry as a broker. The winner of this category will become a finalist for Australian Broker of the Year.

Key criteria included loan volume, quality of submissions, conversion rates and overall customer service.

George Farmer Aussie Bundaberg

FINALISTS

Theo Jansen Mortgage Choice

Mark Ballard Choice Home Loans Bayswater WA

Theo Chambers Shore Financial

Sarcha Sagisaka Momentum Wealth

Mark Davis The Australian Lending & Investment Centre

YEAR INDEPENDENT

Michael Glasgow Blueprint Mortgage Specialists Nick Egan Club Financial Services Gippsland

Sarah Farrugia SAF Finance Group

OF THE

FINALISTS

“Commonwealth Bank has helped more Australians buy their own home than any other bank. CommBank is the market leader in the Australian mortgage broking industry. Our Third Party Banking business unit works with mortgage brokers to help them secure and enhance the financial wellbeing of customers.”

Mardee Thomas 1st Street Home Loans

QUALITY YOUNG GUN

Griffin Czipri eChoice Home Loans

Hayden Dempsey PPF Martin Roach Smartline Norwood

This award recognises those who obtained excellence in their first two years of operation in the mortgage industry as a broker. The winner of this category will become a finalist for Australian Broker of the Year.

Key criteria included loan volume, quality of submissions, conversion rates and overall customer service.

FINALISTS

Kristisha Ramanan Astute Sydney City Central

Tom Caesarowicz Positive Lending Solutions

Jayden Vecchio Discovery Finance Group

LAST YEAR’S WINNER SAYS . . .

WE FOCUS ON SERIOUS VOLUME, SO WE SET UP BASE PROCESSES FOR THE BUSINESS TO BE ABLE TO HANDLE THAT VOLUME. [PRODUCTIVITY] IS WORKING YOUR WAY THROUGH THE RED TAPE OF THE BANK SYSTEM, AND IF YOU KNOW THE SYSTEM IT SHOULD BE FAIRLY EASY”

MARK DAVIS, AUSTRALIAN

LENDING & INVESTMENT CENTRE

QUALITY YOUNG GUN OF THE

YEAR FRANCHISE

David Ray Elite Finance Professionals Joel Wyld Oxygen Home Loans Andrew Strogylos Positive Financial Services Nermalee Bowe QuickSelect James Schulze Rise High Financial Solutions George Fennel Shore Financial Thomas Hawley Shore Financial Loren Adams Smartmove Sam Wong Straightline Finance

SPECIAL REPORT

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The New Brokerage of the Year is for an individual office or branch that is less than two years old.

The winner of this category will become a finalist for Australian Brokerage of the Year.

LAST YEAR’S WINNER SAYS ...

NEW BROKERAGE OF THE

YEAR IT’S GREAT TO BE AMONGST THE INDUSTRY’S BEST PROFESSIONALS

MARISSA SHULZE, RISE FINANCIAL

Key criteria included loan volumes, percentage growth year over year (2012-13/2013-14), quality of submissions, conversion rates, customer service proposition, the business’ value proposition, business strategy and stakeholder engagement.

FINALISTS

Aston Mortgage & Finance Alliance Mortgage Solutions Astute-Melbourne City South Bundy Financial Services Capital Home Loans Finance365 Shore Financial Straight Line Finance

OPINION 18

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COSL has it wrong on credit repair Merri Mansfield, of Princeville Credit Advocates, on why COSL’s threat to credit repair companies is wrong

T

he Credit Ombudsman has announced that it is proposing to no longer deal with some representatives of consumers, namely credit repair companies, “who behave badly”. Part of the bad behaviour cited by COSL is the high fees charged by credit repair companies.

However, COSL will still accept complaints from other paid representatives, namely lawyers, accountants, specialist advisers, guardians, trustees in bankruptcy or an executor of the complainant, as long as they stick to some specific guidelines.

These paid representatives are very likely to have much higher fees than those charged by credit repair companies. And some of the current and known rogue credit repair companies in Australia are lawyers or associated with lawyers. It seems, therefore, that in an attempt to prevent all credit repair companies from making complaints to COSL, whether they are reputable or not, COSL is allowing more complaints to be prepared by some of the worst offenders in the industry, in terms of ethics and practice.

The proposed changes will therefore mean that consumers will potentially pay far more for COSL-approved representatives to prepare their complaints.

It is hard not to think that COSL’s move to ban credit repair companies from making complaints is an attempt to force down the number of complaints, or to force consumers to make complaints themselves, with the effect that there would be fewer successful complaints. This will ultimately benefit the credit providers COSL represents.

FAIR VALUE?

COSL argues that credit repair companies charge “an upfront fee of up to $900, and a further $1,000 per default listing … [when] the debt for which the consumer was default listed is less than $200”. COSL has cited one fee. Moreover, in many cases an incorrect listing of any amount will inhibit a consumer’s ability to gain low-interest finance. Credit providers, who COSL represents, have no problem offering high-interest finance to these credit-impaired consumers, leading to payments of up to $17,500 extra in interest per year on an average $350,000 mortgage.

These second-tier lenders also charge high application fees. Therefore, the value to a consumer of having a reputable credit repair company work to remove a wrongly placed listing saves them upwards of $10,000 per year in interest. A small price to pay.

Consumers need to know far more than COSL would have them believe in order to adequately run their own cases. Consumers are asked to respond to questions that

require in-depth knowledge of the regulations and laws about credit reporting, and this requires more skill than COSL communicates.

THE VALUE TO A CONSUMER OF HAVING A REPUTABLE CREDIT REPAIR COMPANY WORK TO REMOVE A WRONGLY PLACED LISTING SAVES THEM UPWARDS OF $10,000 PER YEAR IN INTEREST. A SMALL PRICE TO PAY COMPARED TO THE ALTERNATIVE In our experience of hundreds of COSL cases, responding to COSL’s requests for information requires significant knowledge of COSL’s policies and processes as well as the relevant law. Consumers rarely know this information and cannot advocate to the same degree as a reputable credit repair company could on their behalf.

COSL also says that credit repair companies, unlike COSL, have no interest

in genuinely considering the consumer’s full entitlement in respect of a claim.

Consequently, once the default listing is removed, credit repair companies do not, for example, negotiate a financial hardship arrangement in relation to the debt for which the consumer was default listed.

As a director of a credit repair company, I wonder how COSL can make this blanket assertion. Our interest is always to look into a financial hardship arrangement in relation to the debt, though at times COSL’s strict timeframes do not allow a consumer enough time to make an informed decision in relation to the outstanding debt.

In my experience of helping thousands of credit-impaired clients, there are numerous cases in which a consumer has attempted to deal with creditors directly over significant periods of time, with no success. On the other hand, credit repair companies have achieved positive outcomes for consumers because their cases are based on a deep knowledge of a consumer’s rights in relation to credit reporting, and their tenacity in asserting those rights.

Merrilyn Mansfield is a consumer advocate and the lead adjudicator and researcher at Princeville Credit Advocates, a Sydney and London based credit repair company. She is fascinated with consumer laws that relate to credit reporting, and advocating for a consumer’s right to a correct credit report. For more information, please visit www.wemend.com.au or email merri.m@princeville.com.au.

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Clive Kirkpatrick: Becoming the vanguard of technology St.George’s general manager of mortgage broking says the bank wants to leverage technology to make life easier for brokers

T

echnology has long been one of St.George’s key differentiators, Kirkpatrick said. The bank was the first to introduce online banking, launching its internet portal back in 1995. And Kirkpatrick said the use of technology had also distinguished the bank in the third party area.

“Technology is certainly key for us, and we’ve been a market leader in technology since we got into the third party,” he said.

St.George has more recently rolled out a variety of enhancements to its technology offering, and Kirkpatrick said the changes would make it easier for brokers to do business with the bank.

“Some of the key things we’ve been doing are around supporting docs online and e-increases, and the other one is around the portal we’ve introduced for our brokers to use online for their escalations and pricing requests instead of ringing in or emailing,” he said. “We’re just trying to make it easier for brokers to get into the bank.”

St.George wants to grow in the broker market, Kirkpatrick said, and technology is the tool that he believes can help the bank accomplish this goal.

“Technology means that we try to make it easier and cleaner, which means we can grow at a more rapid rate, take out some of the rework and the costs involved and pass those savings on.”

One of the boons offered by technology is faster, more efficient decisions. But this means the bank needs all relevant information to put deals through, Kirkpatrick said.

“About 40% of what comes in is not at the point where we can actually make a decision on it straightaway. If we don’t get that right, it snowballs all the way through the process.

It takes longer to turn the deal around, and the customer is impacted in that they don’t get the answer as quickly as they should,” he said.

In order to make sure the bank has the information it needs, Kirkpatrick said, St.George was one of the early adopters of NextGen.Net’s Supporting Docs Online.

“We were first to the market on that. We ran a lot of training sessions nationally to try to get people across the line so they could understand what it is. Everything we need to make a decision the broker can put into the application and send to us at one time.

Currently, 26% of the applications coming in are using Supporting Docs Online, and we are guaranteeing less than a four-hour turnaround time if they use it,” he said.

Kirkpatrick used the example of a Melbourne broker who contacted the bank with a testimonial about the speed and ease of using the platform. He said the broker was surprised by the turnaround speed the bank delivered on.

“He submitted an application at 11am, and at 2pm – yes, three hours later – received a call saying the deal had been submitted to

WE’RE JUST TRYING TO MAKE IT EASIER FOR BROKERS TO GET INTO THE BANK credit for formal sign-off,” Kirkpatrick said.

Another tool the bank is using to streamline its processes is e-increases.

By submitting for increases online, Kirkpatrick said, brokers are saved unnecessary administrative work.

“It’s more of an administrative task for the broker, so if we can just make those faster, cleaner and easier it saves a hell of a lot of time. Instead of becoming a burden, it just becomes a hygiene factor and brokers can move on,” Kirkpatrick said.

The tool also delivers benefits to the bank, Kirkpatrick explained.

“For us, it’s also a tool to help retention.

If you look at it from the broker’s perspective, if I have to complete a whole new application form – or a form that’s as complicated as a new application form – then that probably encourages me to look around. Plus, if I refi the whole deal I get a new commission. So for us it’s a retention tool. Let’s just make it easy so the customer doesn’t have to look elsewhere.”

The bank’s recently launched online portal for escalations can also serve as a time-saver for brokers, Kirkpatrick said.

“Historically, the broker would have to ring Mortgage Central or have their BDM send an email for an escalation or service request or pricing discretion. Now they can go into the website and put all the details in themselves, and we’ll respond immediately.”

The decision to leverage technology to make processes faster and more efficient is a major part of the bank’s strategy, Kirkpatrick said. In doing so, he said he hoped St.George would come to be known as a bank that is easy for brokers to deal with.

“From a strategic point of view, I think if we can be the vanguard on technology to make brokers’ lives easier, as a bank that’s important for us. If we can streamline that, then it makes the information that comes in cleaner; we can understand things quicker, turn it around quicker and get issues fixed.”

BIG IDEA 21

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Different brokers, different needs Choice Aggregation Services CEO Stephen Moore says the aggregator understands no two brokers’ businesses are alike

C

hoice Aggregation Services chief executive Stephen Moore is forthright when it comes to his company’s value proposition.

While some brokers may look for a hands-off aggregation offering, Moore said, Choice is proud to offer a higher-touch approach to its brokers.

“We recognise that different brokers have different needs, and we are unashamedly a full-support business, and the way that we work is that we spend the time to really understand each individual’s business needs and which needs we are then in the right position to provide advice for, but more importantly to be able to tailor up support specifically for their business needs,” he said.

Tailoring solutions means offering different models for different brokers. Moore explained that Choice offers both a wholesale aggregation model and a branded franchise model, and which brokers choose is entirely dependent upon their business needs.

WE ARE UNASHAMEDLY A FULL-SUPPORT BUSINESS “In that we recognised that for some it is about having their own brand and business, for others it is about joining one of our existing groups, and for others it is about joining Choice Home Loans. Frankly, we are agnostic to what it is, as long as it is the right solution for that broker, and we acknowledge those needs can change over time as well,” he said.

The business support offered by Choice to its wholesale and franchise members has

been received positively, Moore said.

“We are focused on more business growth support and practice management support, and the feedback from members is very positive on that.”

One aspect of this support is helping brokers who want to integrate new revenue streams into their businesses.

“When it comes to diversification the key is to recognise different brokers have different needs and different business models, and therefore when it comes to diversification, different approaches,” Moore said.

Again, this comes down to understanding that different brokers have different needs, depending entirely on their business model, Moore said.

“For some a referral model is exactly what they need. For others it’s a JV or some sort of partnership. For others again it is about incorporating into the business,” he said.

Another important aspect of Choice’s value proposition, Moore suggested, is its CRM. Moore said the Podium technology platform is increasingly coming into its own.

“We have seen really a fundamental shift in broker adoption in use of Podium, so we now have an 80% or 90% usage rate, which is fantastic,” he said.

Part of Podium’s success has centred around developing the platform to meet brokers’ business needs, rather than trying to fit brokers’ businesses into the platform, Moore argued.

“It’s not about technology in its own right; it’s about technology as a means to an end, and the rarest commodity for any good broker is in fact their own time. So, for me, technology is about business efficiency to create time to focus on higher-value-add activities,” he said.

MARKET TALK 22

No panic for Perth Perth’s market is easing off from its position at the front of the pack. However, commentators feel it is just a quiet period, rather than a cause for concern

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A

fter putting in a solid stint as a leader of the pack in Australian capital city housing market improvement, the growth profile of Perth’s market has now flattened out.

The latest RP Data-Rismark Hedonic Home Value Index results show that Perth experienced just 0.6% growth in dwelling values over the June quarter. Further, the latest data from the Real Estate Institute of WA (REIWA) recorded a downturn in sales and an increase in properties on the market in June.

REIWA president David Airey says these results were not unexpected and that a seasonal dip in sales activity is always experienced in the winter months. “We expect the market to remain largely unchanged until spring as sales activity ‘generally picks up in finer weather’.”

Airey points out that the median house price has remained steady, at $549,000, and early figures indicate that Perth enjoyed 6% growth over the last financial year. It’s a stable market with a steady median house price, a steady rental price, a steady vacancy rate, and sales listings trending back to normal levels, he says.

“There is enough confidence in this environment, along with a regime of low interest rates, to keep the market ticking over comfortably and with no great surprises.”

However, according to the latest Herron Todd White report, buyer confidence has left the Perth market.

It notes a drop in the level of activity, a slight fall in the median house price, and a below-equilibrium number of listings.

More significantly, the report notes that the iron ore price has dipped below $90 per tonne for the first time in two years, and that some commentators think the major iron ore players will begin to cut back on headcount. Cutbacks in such personnel could have a significant impact on the market.

MARKET QUIETER BUT WELL BALANCED

On a more positive note, Austalian Property Monitors senior economist Andrew Wilson says that, while the market may have flattened out in recent months, that’s after a very consistent 18 months of price rises.

“The median dwelling price is now about 8 to 10% higher than its previous peaks in 2010. So I think we are seeing a bit of moderation in price growth there.

That reflects the fact that prices had probably moved ahead of income, so there’s a slow adjustment going on there.”

While there has been some moderation in economic activity and an increase in unemployment in WA, Wilson believes this reflects the end of the construction phase of the mining boom. A further contributing factor is the need for the economy to absorb the high numbers of workers who have moved to the state looking for work.

“This is all just a mini adjustment phase. I would expect that, given the

strong mining investment in, and exports out of, Western Australia continuing, the rebalancing will move back into positive territory in terms of prices growth.”

In reality, prices in the Perth market are still growing, just a bit more slowly.

The market is going through a quieter period right now, but it should move forward moderately in line with the local economic performance, Wilson says.

“Perth is an interesting market.

It hasn’t had a dramatic boom phase; rather it has seen an orderly recovery process. It has basically been tracking at the inflation rate since the GFC. I think it is a well-balanced market.”

Once the market starts to move forward again, Wilson expects price growth of 4–5% per annum, as long as interest rates remain at around their current level and the economy continues to be healthy.

POTENTIAL FOR OVERSUPPLY?

Some commentators have raised concerns that Perth could be heading towards an oversupply of apartments and units. If this is the case, it could cause headaches for landlords.

According to the REIWA data, there has been a big jump in the number of rental properties on the market. On top of this, Perth’s vacancy rate is at 4% and typical rents have come down by around $25 since the same time last year.

Yet a large number of apartments and units are currently under construction in Perth, particularly in the inner city.

Wilson says there is no real underlying demand for closer proximity to the Perth CBD as a result of congestion and commuting issues, so there could be a risk of oversupply. But he believes that risk is on the margins.

“There is probably enough demand going forward, and the level of supply is not yet such that it will move significantly beyond the demand. It is necessary to keep an eye on the situation though.”

A LOOK AT THE NUMBERS

$529,000 Perth median house price

$442,500 Perth median unit price

3.5% Annual home value increase Source: RP Data

THE COALFACE 23

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Slow and steady Mark Ballard says his key to success is consistency

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or Mark Ballard, mortgage broker at Choice Home Loans, an unlikely mantra applies to productivity in the workplace: slow and steady wins the race.

Ballard has been selected as a finalist for ‘Broker of the Year – Productivity’ at the Australian Mortgage Awards, which recognises the standout mortgage brokers who focus on productivity improvements through increased office efficiencies and quality submissions.

Being productive, for Ballard, isn’t necessarily about writing a record number of loans; it is all about consistency. His focus on ensuring a smooth and steady process for every application he deals with is what earned him a spot as a finalist.

“Regardless of whether it is a $20,000 loan or $600,000 loan, how you approach every single deal should be the same,” Ballard says. “That way, ultimately, you aren’t going to have issues or concerns when it comes to settlement.

“I make sure that every step and process is adhered to and flows smoothly through the bank. It may take more time, but I would rather do that than have an issue occur with the file.

“Never assume that a bank is going to do the right thing and the application is going to pass through the bank’s systems and processes without a hitch. Often, if there is a problem with the loan application, a broker won’t even find out until the last minute. As a broker, you must be diligent and proactive. It might take more time and effort in the short term, but it will save you and make you more productive in the long run.”

Productivity and success in any workplace comes down to always making time, according to Ballard.

It is about being persistent and never

taking shortcuts. This is the type of culture that he works to instil in his office, where he has trained a number of new brokers.

“If any of my colleagues are faced with an issue or problem, I encourage them not to look at it as just an isolated issue that needs a quick fix so they can move on. I encourage them to take the time and look at it from a perspective of moving forward – that it is something we will need to address and implement into our systems to make sure that the same type of issue doesn’t happen again. I want our brokers to look at the root of the problem, what caused the problem, and ask why it happened. You have to take the time to learn from these experiences, not just make them go away quickly.”

Ballard stresses that there is no cookie-cutter approach to workplace efficiency and productivity, though.

His advice for new brokers or brokers wanting to improve their efficiency is to avoid complacency and always “be on your front foot”. Brokers shouldn’t be afraid to use their peers and to try different ways of doing things.

“You have to find what works best for you. When I’m training and mentoring new brokers, I encourage them to not only sit in with me but spend time with all the other different brokers in the office – I specialise in residential lending, but we also have commercial and equipment brokers,” he says. “Learning from a variety of different people is important because everyone has different ways of doing things, and what is efficient and works for me might not work for them.

I highly encourage brokers to observe how their peers and colleagues handle different situations to discover what works most efficiently and best for them.”

FINANCIAL SERVICES 24

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FORMER RBA ECONOMIST WARNS HOUSING IS OVERVALUED

Queensland economy on the move again

T

he Queensland economy is ready to move on from its mining days and to ride the ‘next wave’: gas, tourism, agribusiness, international education and wealth management.

According to the Deloitte Queensland Index 2014, employment growth in Queensland over the next five years is expected to average 2.5% per annum. That compares with expected employment growth for Australia as a whole of 1.7% per annum over the same period.

The state’s population growth is also expected to perform better, after the slow population growth of the past couple of years. The index expects to see the population grow at around 2.2% per annum, forecasting that it will reach five million people in 2016 and six million 10 years later, in 2026.

Sustained low interest rates are also sparking investor interest in housing and increasing housing construction levels. Queensland was particularly hard hit over recent years, with greater pull-back in commercial and residential sectors than elsewhere in Australia.

Chris Richardson from Deloitte Access Economics said: “Queensland’s economy is performing better than its residents realise, and the State is predicted to outperform New South Wales and Victoria over the coming years in terms of population growth, employment growth and overall economic growth.”

The transition from mining investment has been helped by the parallel investment phase in the coal seam gas to liquefied natural gas for export projects. This helped Queensland avoid what could have been a very significant fall in activity as the mining boom ended.

John Greig, Deloitte Queensland managing partner, said: “As we move into the mining and gas production phases, and hopefully assisted by a weaker Australian dollar, we can look forward to more broad based and stable growth over the coming years.”

QBE TO OFFLOAD PART OF LMI ARM QBE has followed Genworth in announcing plans to float its LMI arm as profits in other areas of the business falter.

The global insurance company saw an 18% decline in profits over the six months to June, and said it would partially float its LMI arm. The IPO is expected to take place sometime in 2015.

“QBE LMI’s results have been outstanding and are expected to remain so for the foreseeable future,” QBE Group CEO John Neal said.

The IPO will help the insurance giant pay down debt and raise capital. The move comes on the heels of a similar decision by Genworth to float its Australian LMI business. Genworth raised $583m by selling of a chunk of its LMO arm in May.

FAST FACT

64% Proportion of industries paying higher salaries for vacant positions than they were 12 months ago Source: SEEK

A former RBA official has claimed that Australian houses are overvalued by up to 30%.

Former Reserve Bank senior economist Jeremy Lawson has told the Australian Financial Review that Australia’s housing market has left it vulnerable to major international economic shocks. Lawson, who is currently global chief economist of British fund manager Standard Life, told the AFR that Australia’s property market was 20–30% overvalued. “[It is] reasonable to assume that future house prices will grow in line with real household d­ isposable income as the commodity boom unwinds,” Lawson told the AFR. But house prices have risen faster than disposable incomes, and Lawson argued that this meant housing was overvalued.

“That would imply overvaluation of between 20% and 30%,” Lawson said.

Lawson was critical of the RBA, and said easy monetary policy and the reluctance to use macro-prudential tools had seen prices grow too fast.

“Part of the problem is that rates are being relied on to do too much work. Given the risks, I would like to see the RBA and APRA make much more active use of ­macro-prudential instruments. That way you can have both low rates to support the overall economy while maintaining tighter credit conditions for riskier sectors,” he told the AFR.

a

RESIDENTIAL DEVELOPMENT ON THE RISE

The construction of new residential housing increased by 2.2% in the June 2014 quarter, according to official figures.

Comparing year-on-year, residential building work increased by 9.6% since June 2013.

Preliminary figures released by the ABS show that the key driver of growth this quarter was due to the detached housing segment. These results haven’t revealed any unexpected surprises, says an economist for the Housing Industry Association, Diwa Hopkins.

“These developments are largely in line with what we have been expecting of the current new home building cycle; that larger improvements in detached house building activity would follow in the wake of the previously strong growth experienced by the multi-unit segment of the market,” Hopkins said.

“Unfortunately, conditions in the major-renovations segment of the market remained subdued, with the value of this work done declining by 2.4 per cent during the June 2014 quarter,” she added.

ONE YEAR ON 26

ONE YEAR ON What a difference a year makes… or not. Australian Broker reflects on the punditry, news and trends that made headlines 12 months ago Australian Broker Online, September 2013

Lender ramps up broker commissions

AMP Bank last year launched a “Spring Special” offer for brokers to pay an additional 20bps of upfront commission. The move came on the heels of a promotion by ME Bank to offer bonus commission payments for volume.

The non-major offered brokers up to 30bps of extra upfront commission for settlements greater than $1m. Westpac followed suit, extending a commission incentive it had introduced earlier in the year.

What’s happened since?

Another round of commission sweeteners has been launched by lenders. Most recently, Bankwest and AMP announced commission changes for their broker networks. NAB reintroduced year-one trail, while Westpac made its commission incentives permanent and offered conversion hurdle bonuses. Brokers, meanwhile, have argued that turnaround times and consistent service are far more important than commission.

RBA keeps cash rate on hold, but pressure on for final cut

When the Reserve Bank chose to keep the official cash rate on hold at 2.5% last September, financial commentators called for a further rate cut to be delivered late in the year. While the RBA cut rates to a record low at its August 2013 meeting, Mortgage Choice CEO Michael Russell and HIA economist Harley Dale both argued that the Bank could trim the cash rate again in the final quarter of the year.

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White explains Loan Market’s franchise move

L

oan Market recently moved to a full franchise model. Chairman Sam White told Australian Broker TV the move demonstrated the growing importance of branding.

“I think going forward, brand is going to become more and more important. The broker proposition of choice is also combined with trust. So many brokers – whether they’re with us or with other groups – are quality operators. I think going forward, brand will be something customers identify with in the future,” White said.

White said the maturing of the industry had seen mortgage broking businesses grow in value.

“This is no longer now just a profession. It’s an industry brokers create goodwill in and value in,” he said.

As the industry’s stature grows, White said brokers seeking to retire are looking to receive fair value for their businesses.

“As more and I THINK GOING more brokers start to exit, we FORWARD, BRAND IS see them saying, ‘Hang on, I want GOING TO BECOME MORE AND MORE IMPORTANT to sell a business, not just a trail book’.”

White argued that the franchise proposition gave brokers a better asset to on-sell when they exit the industry.

While the company may have adopted the franchise model, White said many aspects of the business would remain unchanged.

“Our DNA really hasn’t changed. Beforehand, everyone traded under our brand. They still do that now. They had a certain operating model, which we have now,” he said.

But White said the move would deliver a number of benefits, including for brokers looking to bring on staff.

“It enables them to recruit and develop their people more because they have a direct employment relationship with their loan writers,” he said.

What’s happened since?

That final mooted cash rate cut has never come, and most economists are now predicting a period of stability followed by a return to rate hikes next year. But there could be scope for one final cut, with unemployment trending upward and the Australian dollar remaining stubbornly high. Still, the majority of economic prognosticators seem to agree the RBA’s next move will be the kick-off to a tightening cycle.

For the full interview, head to www.brokernews.com.au/tv

FORUM 27

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Bank branches should play by the same rules Brokers have demanded that bank branches be held to account for their lending practices

A OPENING THE CAN OF WORMS With brokers calling on banks to play by the same rules, MCC has argued there is a way to gauge how bank staff are performing when it comes to responsible lending: “ASIC simply needs access to the bank’s internal audit reports which are carried out regularly in respect to ‘credit risk’ quality. That sets up a more transparent connection between external and internal processes, and will then reveal the extent of fraudulent activity. In many cases officers are weeded out via those internal audits and are either shown the door, requested to resign or charged accordingly. However, the extent of these incidents is not known to the external public/media.

So here’s the challenge to the industry journalists – use your investigative powers, your connections, etc, and open up this ‘can of worms’, but be prepared for what is revealed.

Remember, sales targets and bonus rewards for hitting them can be a huge incentive for a lending officer to bend the rules and break them where necessary.”

MCC on 29/08/2014 at 10:06AM

SIC has pushed to be given broader powers to oversee bank staff in order to better protect financial planning clients, and FBAA president Peter White has argued that the regulator should also turn its eye to bank branch managers and their lending practices. White said that the scrutiny applied to branch managers should be the same as that applied to brokers.

Brokers agreed, and shared stories of banks playing by a different set of rules.

Oscar Hvala gave examples of loans that banks had taken from him that he said wouldn’t pass muster for a broker.

“I had several loans taken from me that under NCCP or the bank’s own policies could not be done. For example, a person with three defaults, two of which were unpaid (total of about $20k), applied, fully approved and docs signed in one week! Customer called me just to ‘stick it’ to me and my customer feedback was ‘0’. I can’t say which bank is responsible in this case, but to me on the surface, this sounds, smells and feels shifty if true. All other lenders and the bank itself advised this was impossible. Needs closer scrutiny!”

TJA expressed shock that banks haven’t already drawn closer scrutiny.

“Why they haven’t been under the microscope already is unbelievable, they have DUA, and some, not all abuse this majorly. I had one couple – the guy had a bankruptcy so the bank lender put all income under the female.

This was the worst instance [but] there have been others. So [it’s] about time.”

WHAT BROKERS WANT

Brokers have argued that consistent service and turnarounds are far more important than commissions.

Bottom Line on 2/09/2014 at 9:57AM “Hmmmm. So I guess they’d be rapt with 10 minute turnarounds and no commission? As commissions aren’t important to them, just the service?”

What do you think?

Leave your comments at brokernews.com.au

Marty on 2/09/2014 at 1:55PM “I’d take less comms if I could get consistent same day formal approvals and docs available in office instantly. Could write more deals then.”

Steven said some of the practices of bank branches cross the line into fraud.

“I couldn’t agree more, I’ve been in the industry for 17 years and I have had clients obtain finance from branches when I clearly could not help them as they were either on Centrelink benefits or earning cash and not declaring their income to the ATO. I can think of four bank branches off the top of my head who conduct in fraudulent activity. It’s time that a level playing field is applied.”

And VicBroker summed up the situation by pointing out the disparity between the way banks and brokers are treated.

“If we had implemented similar methods [to those] the bank staff practise, some of us would have ended in jail.”

BANKS ‘RIDICULOUSLY SLOW’ TO PASS ON CUTS

Former ACCC chair Allan Fels accused lenders of being too slow to pass on rate cuts.

Country Broker on 19/08/2014 at 9:09AM “Allan Fels is a warrior and his comments are timely. Well done. Pity the current lot at the ACCC are not as vocal.”

Matt on 20/08/2014 at 7:58AM “What about the threat of a banking tax on the mega profits?”

PEOPLE 28

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BROKER SNAGS INSURANCE AWARD

Aggregator backs women in broking A major aggregator says its PD program for women in broking is unique in the industry

M

ajor aggregator FAST says it is committed to supporting women in the broking industry, and that it is the only aggregator with a dedicated professional development program for women.

Launched last year, the FAST Women in Finance event series offers female brokers a forum to come together, network and share best-practice business tips and strategies.

Due to a strong response, the aggregator expanded the event this year. In addition to Sydney and Melbourne, the event travelled to Adelaide, Brisbane and Perth, with each event receiving a strong response from local brokers.

Speaking at the Sydney event on Friday, FAST CEO Brendan Wright said the Women in Finance series was just the tip of the iceberg in terms of FAST’s commitment to women.

“We want to attract more female brokers to the FAST network and we want our female brokers to be the industry’s most successful, and this is a key focus for us moving forward,”

Wright said. “FAST strives to lead the industry in catering to ambitious, business-minded brokers, and we believe the opportunities for women to play in this top tier of the industry are just as strong for women as they are for their male counterparts.”

WE WANT TO ATTRACT MORE FEMALE BROKERS TO THE FAST NETWORK AND WE WANT OUR FEMALE BROKERS TO BE THE INDUSTRY’S MOST SUCCESSFUL – B RENDAN WRIGHT, FAST “Mortgage broking represents a great career path for women, and we are dedicated to supporting women to succeed in this exciting, ever-evolving industry,” Wright added.

Chris Azzi, a senior mortgage broker at Loan Market, won the ALI Group NSW Broker of the Year Award.

The ALI Group Broker of the Year Awards recognises brokers who have truly embraced their ‘duty’ of care to their clients.

It is Azzi’s more holistic approach to broking that earned him this award. Since late 2010, Azzi has made a point of ensuring that loan protection insurance is a part of his offering.

“I had a client come to my office just before I started offering loan protection insurance. She lost her husband to cancer and unfortunately they weren’t covered. She had to sell their family home. Her or her husband were never educated about what options they had in case of a serious situation like this.

“This really struck a chord with me so I decided to think about what I could offer my clients, even purely just for educational means. It wasn’t for monetary purposes; I would never make a client take out loan protection insurance, but I wanted to make it a part of my service to educate them about their options and what is on offer. I am happy if they want to get it from another provider or if they decide they don’t need to purchase it, but I just want people to consider it, and be educated.”

Loan protection insurance not only ensures your home loan can be serviced in the case of death, but it is also there to protect your income – and loan repayments – in the case of serious medical conditions or unemployment.

According to the ALI Group website, more than three out of four Australians will be diagnosed with a serious illness in their working life, yet only 4% of Australian families with dependent children have the recommended amount of life cover, which also covers income insurance.

Azzi hopes that more and more mortgage brokers will take this more holistic approach to broking.

“I know our job is finance broking for mortgages first and foremost, but we can’t forget about insurance.

A lot of brokers are really busy and might think that they don’t have time to branch out into offering insurance – they think it is too time-consuming. It can be time-consuming at times when you have to talk about another product, but it is important to give clients options, in the same way we give them options in regard to home loans.”

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CAUGHT ON CAMERA

IN FOCUS

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ajor aggregator AFG recently held its annual NSW/ACT awards luncheon in Sydney where it unveiled its top 20 groups and top 40 loan writers, as well as honouring members with a host of other individual and business awards.

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INSIDER 30

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What’s in a name? A lot, apparently Employers should have put more thought into these odd job titles

D

o you call yourself a broker? A credit adviser? A mortgage specialist? Whatever you’ve landed on, it’s bound to be better than these odd job titles.

FULL-TIME WIENER PEELER

Wanted by a hotdog plant, the advertisement for this job called for “talented people who are passionate about making a positive impact in their professional and personal lives every day”. And who presumably enjoy removing sausage casings for a living.

EXPERT UPSETTER

Chances are, you probably feel like you’ve met a few of these already.

In reality, it involves setting up and operating a closed-die forging machine.

GHOST HUNTER

This one is actually exactly how it sounds, but is required for the purpose of reality television.

ANIMAL COLOURIST

It’s not nearly as salacious as it sounds. This job involves supervising erections – of the construction variety.

This role literally involves colouring animals – dyeing them for roles in movies and advertising campaigns. If you’ve ever wanted to turn a pony into a zebra, this is the role for you.

S&M COORDINATOR

TRAVEL SPACE AGENT

ERECTION SUPERINTENDENT

Some jobs, such as the sales and marketing coordinator, should rethink the need for abbreviations.

CHICK SEXER

Much like the erection superintendent role, this isn’t a teenager’s idea of a dream job. It actually involves distinguishing the gender of baby chickens to determine which feeding programs they will receive.

It’s yet to really take off, but Virgin Galactic, the world’s first space tourism business, is up and running – complete with an accredited travel agent.

HAIR BOILER

Another literal job title, hair boilers oversee vats that boil animal hair to curl it for hair-based products.

BOGUS CLAIM SWAMPS DRIVER A US driver has admitted to deliberately crashing his rare US$1m Bugatti into a swamp so he could collect a $2.2m insurance payout on the vehicle.

Andy Lee House, 39, originally claimed he had swerved to avoid a pelican causing his 2006 Bugatti Veyron to end up in the swamp, the Daily Mail reported.

The performance car dealer, from Texas, then ruined the car by not turning off the engine allowing it to fill with salt water, claiming he was being attacked by mosquitoes at the time.

However, House changed his plea when it transpired that a passing motorist, who had been admiring the vehicle and used his phone to record it, posted the footage to YouTube. The man had captured the car as it went off the road and into a metre of water. This prompted insurance company investigators to note discrepancies in his account.

Authorities say House had bought the car with a $1m interest-free loan from a friend then bought insurance on it as a collector’s vehicle, valuing it at more than $2m.

They also said he had made no attempts to brake and there were no skid marks found on the road.

They said the car expert “left the vehicle running for over 15 minutes while it was submerged until it died on its own causing unnecessary damage to the vehicle’s engine”.

He will now be sentenced and faces up to 20 years in federal prison.

DIRECTORY AGGREGATOR/ WHOLESALE BROKER

Choice Home Loans 1800 188 288 www.choicehomeloans.com.au Page 15 FAST 02 9233 8222 www.fastgroup.com.au Page 11 PLAN Australia 1300 78 78 14 www.planaustralia.com.au Page 7

BANK

ANZ 13 13 14 www.anz.com.au Page 9

FINANCE

Semper Capital Pty Ltd 1 800 SEMPER (1 800 736737) www.semper.com.au enquiries@semper.com.au Page 21

LENDER

Homeloans Ltd 13 38 39 www.homeloans.com.au Page 13

Liberty Financial 13 11 33 www.liberty.com.au Page 3 Macquarie 13 62 27 macquarie.com.au/mortgages Page 32 MKM Capital 1300 762 151 www.mkmcapital.com.au Page 10

National Australia Bank www.nabbroker.com.au Page 4 and 5

SHORT TERM LENDER

Eastwood Securities 08 8408 0800 eastwoodsecurities.com.au admin@eastwoodsecurities.com.au Page 6

Interim Finance 1300 731 317 www.interimfinance.com.au Page 2 Mango Credit 02 9555 7073 www.mangocredit.com.au Page 1

OTHER SERVICES

Deposit Power 1800 678 979 www.depositpower.com.au Page 8 Genworth 1300 655 422 www.genworth.com.au infoau@genworth.com Page 19

MFAA 1300 554 817 www.mfaa.com.au Page 17

RP Data 1300 734 318 Page 23 Trailerhomes 0417 392 132 Page 26

To advertise in Australian Broker, call Simon Kerslake on 02 8437 4786

Celebr ate your success at the 13th annual Austr alian Mortgage Awards

Friday 17th October 2014 Sydney Town Hall www.austr alianmortgageawards.com.au

EVENT PARTNER

EVENT CHARITY

AWARD SPONSOR