Australian Broker 12.16

NEWS Former mortgage fund director banned A former director of a Sydney mortgage funder has been banned following an ASIC investigation p4

ANALYSIS Investors’ state of mind A look at how changes to investment lending have impacted on sentiment p10

COALFACE Learning a new game A former Socceroo on his new chapter p14

AUGUST 2015 ISSUE 12.16

SPECIAL REPORT Commercial deals made easy How lenders have helped commercial brokers close deals P18

MARKET TALK The new hotspot

STEPHEN MOORE

Choice’s CEO discusses the aggregator’s major milestone and those that lie ahead

Foreign investors are looking at a new Aussie destination P22

FINANCIAL SERVICES SMSF safe?

An industry association has claimed SMSF borrowing won’t be axed P24

2

NEWS

REGULATION

WORLD

INDUSTRY

Former mortgage fund director banned P4

US man sentenced for fraud P6

Home loans drive satisfaction P8

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Sales Manager Simon Kerslake

Production Editors Roslyn Meredith Moira Daniels

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WINSTON HILLS

Account Manager Rajan Khatak Marketing and Communications Manager Lisa Narroway

CORPORATE

ART & PRODUCTION

Chief Executive Officer Mike Shipley

Design Manager Daniel Williams

Chief Operating Officer George Walmsley

Designer Lea Valenzuela

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19

Editor Adam Smith

Journalist Maya Breen

20

ACACIA GARDENS KINGS LANGLEY

SALES & MARKETING

News Editor Julia Corderoy

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WERRINGTON

EDITORIAL

Traffic Coordinator Lou Gonzales

Managing Director Justin Kennedy Publisher Simon Kerslake Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

17

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KAREELA

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Source: CoreLogic RP Data

AGGREGATOR LAUNCHES INSURANCE PARTNERSHIP

Huy Truong

National aggregator eChoice has announced a partnership with leading risk insurance specialist ALI Group, to incorporate mortgage protection into its core service offering for brokers and borrowers. eChoice general manager of products and services Kon Shizas says this latest partnership will contribute significantly to the company’s progressive customer service platform for brokers, enabling them to easily diversify their business.

“Loan protection has always been an important element to consider for a growing number of astute borrowers, so the formalisation of this partnership with ALI will allow eChoice brokers to offer mortgage protection as an essential part of the application process.”

ALI Group CEO Huy Truong says the partnership with eChoice is another example of how ALI can provide a superior mortgage protection solution for the broker market.

“We are proud to be the leading mortgage protection partner to the industry and [it] reinforces our strategy of being the only life insurance business singularly dedicated to the broking industry.”

Simon Kerslake +61 2 8437 4786 simon.kerslake@keymedia.com.au Rajan Khatak +61 2 8437 4772 rajan.khatak@keymedia.com.au Key Media Pty Ltd Regional head office, Level 1O, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, Toronto, Manila This magazine is printed on paper produced from 1OO% sustainable forestry, grown and managed specifically for the paper pulp industry 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.

NEWS 4

BY THE NUMBERS

54%

More than half of investors say recent changes to investment lending won’t change their plans

Source: Mortgage Choice

FORMER MORTGAGE FUND DIRECTOR BANNED A former director of a Sydney mortgage funder has been banned from managing corporations and providing financial services for three years following an ASIC investigation.

The regulator found that Trevor John Seymour of Campbelltown NSW, a former director of Provident Capital Limited, had breached his duties as a director and failed to comply with financial services laws.

Provident Capital, which went into receivership on 3 July 2012 and into liquidation on 24 October 2012, operated a mortgage fund under a wholesale facility with Bendigo and Adelaide Bank and two managed investment schemes. Seymour was a director

of the funder from 25 May 1998 to 17 December 2013.

The ASIC investigation found that Seymour had breached his obligations as a director of Provident Capital and engaged in conduct that was misleading or deceptive in relation to financial products, by approving a number of documents issued by the funder.

The documents included 15 quarterly and seven benchmark reports issued to ASIC and Australian Executor Trustees Limited which contained misleading or deceptive statements, a debenture prospectus in December 2010 which contained misleading or deceptive statements, and information booklets in 2012 which were deficient.

James Symond “We achieved all of our ambitious growth targets for the year, with our retail and mobile broker channels both reporting record levels of lending volumes” P8

John Flavell “Our data shows an increasing number of investors are actually Gen Ys who are purchasing property for the first time” P22

WHAT THEY SAID...

Mark Bouris “Celebrity Apprentice has always been great for business and driving growth” P6

WESTPAC IT GLITCH PROVES COSTLY Westpac has forgone millions of dollars in interest income thanks to an IT glitch that has prevented the bank from raising interest rates on investment loans.

Australia’s largest lender for investment properties is left unable to increase the interest rate for investment loans without increasing the interest rate for owner-occupier loans as well.

This is all due to a decision Westpac made in 2005 to point both owner-occupier and investor loans to a single reference rate.

Now the bank’s computer system will not allow the major to point a second reference rate to investor loans only.

According to a report in the Australian Financial Review, this glitch is now costing the bank around $1m a day in forgone interest revenue.

However, Hugh Dive, a senior portfolio manager at Aurora Funds Management, which holds Westpac shares, played down the impact when speaking to the AFR. “What is of greater interest is that the banks, including Westpac, are repricing their loan book upwards. In the context of a loan book of $622 billion, changes to Westpac’s net interest margin, or even maintaining their NIM as they did in the first half 2015, is of much greater importance to shareholders and bank profitability than $1 million per day in foregone interest income.”

NEWS 6

WORLD NEWS

WHAT MARKETS ARE MOST AT RISK OF A SIGNIFICANT CORRECTION IN VALUES?

80% NT

73%

BRISBANE

UNITED STATES OF AMERICA MAN SENTENCED FOR REAL ESTATE FRAUD A Modesto, Calif., man will spend the next five years behind bars for real estate investment frauds perpetrated in two US states.

Xue Heu, the man behind the schemes, was also ordered to pay US$1,116,366 in restitution to his victims and will spend three years under supervised release following his jail sentence.

“Heu was sentenced to 63 months in federal prison for his role in a real estate fraud scheme that [he] and others advertised as a business selling ‘TARP-owned’, foreclosed properties to individuals interested in investing in the real estate market,” Christy Romero, special inspector general for the Troubled Asset Relief Program (SIGTARP), said in a release.

“Heu solicited investors through LinkedIn and guaranteed them a certain positive return on their investments.”

Between August 2007 and October 2013, Heu solicited individuals to invest in a real estate business that bought and sold real estate, according to court documents. Heu’s scheme involved fraudulent documents, including forged deeds, and resulted in US$412,896 in fraudulent money transfers.

In a separate scheme between 1 October and 31 December 2013, Heu and other participants defrauded individuals under the guise of investing in the Troubled Asset Relief Program.

68%

79%

73%

SYDNEY

ADELAIDE

55%

77%

PERTH

ACT

MELBOURNE

70% TAS

Source: CoreLogic RP Data, Nine Rewards

YBR TO TRIPLE MARKETING SPEND Yellow Brick Road is set to triple its marketing spend after a year focused on network expansion and product growth.

The increased expenditure with YBR’s shareholder Nine Entertainment Company will mean trebling spend across television and digital channels, including a new season of Celebrity Apprentice Australia.

With the added value of the

program content, the marketing impact is equivalent to $20m.

YBR executive chairman Mark Bouris will return to Celebrity Apprentice Australia as part of the spend, but the business will be a more integral part of the show than it was in the past.

“Celebrity Apprentice has always been great for business and driving growth,” says Bouris.

“This year Yellow Brick Road will play a bigger role in the program.

“The impact will put us as a business in the national spotlight with a significantly bigger media spend supporting the program.

“Throughout the season our hard-working branch owners will play a role in different episodes alongside the celebrities.”

NEWS 2

NEWS 8

STATE OF THE MARKET

Highlights from the three months to July 2015 BEST PERFORMING CAPITAL CITY

WEAKEST PERFORMING CAPITAL CITY

HIGHEST RENTAL YIELDS

LOWEST RENTAL YIELDS

Melbourne

Darwin

Darwin houses with gross rental yield of

Darwin and Brisbane units at

Melbourne houses with gross rental yield of

+6.1%

-3.0%

5.7%

5.5%

3.0%

MOST EXPENSIVE CITY

MOST AFFORDABLE CITY

Melbourne units at

Sydney with a median dwelling price of

Hobart with a median dwelling price of

4.1%

$790,000

$305,000 Source: CoreLogic RP Data

ACCC LOOKS TO FACILITATE NEW CREDIT REGIME The ACCC has released a proposal to help facilitate comprehensive credit reporting, which will help foster competition and allow lenders to make better lending decisions.

Reforms to the Privacy Act in March 2014 expanded the types of information on consumer credit that can be shared among lenders, to include positive data such as account repayment history.

Prior to March 2014, the Australian credit reporting regime only permitted the collection of negative data such as credit defaults.

The ACCC has now proposed to grant authorisation for five years to the Australian Retail Credit Association (ARCA) in relation to principles for exchanging comprehensive consumer credit data between signatory credit reporting bodies and

HOME LOAN CONSUMERS DRIVING BANK SATISFACTION

FAST FACT

James Symond

100

AUSSIE HITS $20BN MARK Aussie Home Loans has posted a record $20bn in home loan settlements across the Aussie Group during 2014/15, including $16.8bn through its Aussie-branded franchises.

The record-breaking year was capped off in June, with settlements during the month at a record $1.98bn, including wholesale mortgage aggregator nMB, with Aussie’s retail channel settling more than $1bn in loans for the first time.

“We achieved all of our ambitious growth targets for the year, with our retail and mobile broker channels both reporting record levels of lending volumes,” Aussie CEO James Symond said.

“Aussie also reached an important milestone in our 23-year history, employing our 1,000th mortgage broker, while we have just opened our 175th purpose-built store. The mobile mortgage broker channel is also going full steam ahead, settling a record $600m in June.

The Aussie Group loan book, including nMB, is nearing $70bn, with Aussie’s own white label home loan products currently the most popular product on offer, according to Symond.

80

81.4% 60

40

Consumer satisfaction level with major banks for six months to June 2015

20

0

lenders. ARCA represents lenders and credit reporting bodies in Australia.

The ACCC’s acting chair, Delia Rickard, says the regulator has received a large number of submissions from the industry in response to the application for authorisation, with general support for the application which will help lenders make better lending decisions.

Source: Roy Morgan

Home loan customers have driven the gains in consumer satisfaction with the major banks over the past 12 months, new research shows.

Consumer research conducted by Roy Morgan Research revealed that the 3.2% point improvement in home loan customer satisfaction among the big four was responsible for the 0.6% point gain in overall satisfaction, as the non-home loan segment remained unchanged.

NAB fared the best in the survey, as the best performing bank, up 7.2% points to 81.8%. It was followed by Westpac (up 4.2% points), ANZ (up 1.9% points) and CBA (up 1.2% points).

Norman Morris, industry communications director at Roy Morgan Research, says a combination of factors have contributed to the overall happiness of home loan consumers.

“The decline in home loan interest rates over the last 12 months appears to have resulted in improved customer satisfaction levels among home loan customers of the big four banks, which in turn has driven up overall satisfaction,” he said.

10

ANALYSIS

CONNECT WITH US Got a story, suggestion, or just want to find out some more information?

CONSUMERS ON THE HOUSING MARKET The Australian housing market has had economists and market analysts flipping sides, butting heads and sparking debate, but what does the average Australian consumer – and your client – think?

ALL THE TALK about escalating house prices, intense competition and record home loan lending has Australian consumers very concerned.

Housing affordability across the nation has become such an issue that it has spearheaded its own parliamentary inquiry into home ownership. Australia’s banking regulator, APRA, has had to warn the banks to tighten the reins on investment lending to cool the growth. The federal government has had to enforce tougher regulation around foreign property investment to ensure foreign investors don’t further drive up Australian house prices.

But while the strength of the housing market should make consumers feel comfortable as it props up Australia’s sluggish economy – the latest consumer price index showed inflation rose at a rate of 1.5% in the year to June, comfortably below the RBA’s 2–3% inflation target band – it has them walking on eggshells.

What goes up must come down According to a consumer sentiment survey conducted by CoreLogic RP Data and Nine Rewards – which surveyed over 1,000 Australian residents – the majority of Australian residents are worried that the housing market could suffer a significant correction in values. In fact, three-quarters of respondents believe that a significant correction is on the horizon.

When this question was first asked back in early 2013, 60% of respondents said they believed this to be a concern, and the proportion has progressively risen since this time. CoreLogic RP Data research director Tim Lawless says the increasing number of respondents who think the market is now more vulnerable to a substantial correction suggests buyers are becoming more cautious in their decision-making as house prices continue to rise.

According to the data, respondents from regional WA and the NT were the most pessimistic about a serious downturn in housing values, with 86% and 80% of respondents, respectively, indicating they were concerned that values could plummet.

A high proportion of Sydney-based respondents (79%) also indicated that they felt the housing market could stage a significant downturn. According to Lawless, the high rate of capital gain over recent years has raised

increasing concern about an overvaluation in the Sydney marketplace. Australia’s secondbest performing market, Melbourne, was not far behind, with 77% of respondents concerned about a significant housing downturn.

What’s the problem?

Increasing foreign investment is largely to blame for the expensive price tag on Australian real estate, according to the survey. Almost three-quarters (73%) of those surveyed

While consumer sentiment towards selling property has progressively increased, sentiment around buying property has been doing the opposite Meanwhile, respondents from Perth were surprisingly optimistic about the future of the housing market, considering that the local market is currently seeing dwelling values move lower and economic conditions have weakened since the peak of the resources-led boom.

However, more than two-thirds (68%) were still worried about a major house price correction.

expressed concerns about foreign buyers pushing prices higher across the housing market and making it more difficult to own a home.

Almost one-fifth (19%) said foreign investors were placing “extreme” upwards pressure on housing prices, and 30% thought foreign buyers were placing “strong” upwards pressure on prices. Just 6% of respondents thought foreign

ANALYSIS 12

Is Australia’s housing market vulnerable to a significant correction in values?

NO

25% YES

75% Are foreign investors driving up house prices?

NOT SURE

12%

YES

73%

NO

14% Is now a good time to buy property?

NO

40% YES

60% Is now a good time to sell property?

NO

35% YES

65% What will rates do over the next 12 months?

Fall by more than 25 basis points

3%

Remain steady

41%

Rise by 25 basis points or less

35%

Fall by 25 basis points or less

11%

Rise by more than 25 basis points

10%

Source: CoreLogic RP Data, Nine Rewards

buyers weren’t affecting house prices at all.

According to NAB’s residential property survey, foreign buyers accounted for 12.8% of total demand for new housing in the second quarter of 2015, although this has declined slightly from 15.6% recorded in the first quarter.

In established housing markets, however, foreign buyers were more active over the quarter, with their share of national demand rising to 8.6%, from 7.5% in Q1.

According to the consumer sentiment survey, the regions where foreign buyers were perceived to make it most difficult for residents to purchase a home were Sydney, regional NSW, Melbourne and Tasmania – where at least 79% of respondents perceived foreign buyers were making it more difficult for Australian residents to purchase their own home.

Time to sell?

As a result of concerned consumer sentiment, it is not surprising that 65% of respondents thought it was a good time to sell – the highest reading in the history of the survey, which extends back to the first quarter of 2013.

Sydney and Melbourne-based respondents were the most optimistic about selling conditions. But given that the current strength of the housing market in these cities is causing a looming fear of a significant downturn, this result is not surprising.

While consumer sentiment towards selling property has progressively increased, sentiment around buying property has been doing the opposite. According to the survey, 60% of respondents agreed that now was a good time to buy a property or home. This proportion has fallen from 71% of respondents at the same time a year ago, and is down from 80% of respondents over the second quarter of 2013.

The regions where survey respondents were most optimistic about buying conditions were Tasmania, regional SA, Brisbane, and regional Queensland. According to Lawless, this is

because these regions are yet to see a substantial run-up in prices.

According to CoreLogic RP Data’s June Home Value Index, Brisbane recorded the third-largest year-on-year growth out of the eight capital cities. With annual growth of 3.4% over the 12 months to June, Brisbane is in an up-cycle but has still not hit the peaks of the 16.2% and 10.2% growth seen in Sydney and Melbourne respectively.

Potential buyers in Australia’s most heated housing market, Sydney, were the most cautious, with just over a third (37%) saying they felt it was a good time to buy property in the NSW capital. This was followed by Adelaide (56%) and Melbourne (58%).

The year ahead While three-quarters of respondents confessed concerns about a significant house price correction in the future, they did not believe it would happen within the next 12 months.

Almost half (45%) indicated they expected home values to rise over the next 12 months.

However, of those who were expecting values to move higher, 71% were anticipating gains of less than 5%. Forty-one per cent believed that house prices were going to remain steady over the next 12 months, while just 14% suspected prices would drop.

Perhaps due to house prices increasing further, the majority (45%) also believed that interest rates would start hiking over the coming year. Of those expecting an increase, 35% expected that rates would rise by 25 basis points or less, while 10% expected that rates would rise by more than 25 basis points.

The same number of respondents that believed house prices were going to remain steady also expected mortgage rates to remain steady (41%).

The same number of respondents who suspected house prices would drop also suspected interest rates would head further south. However, just 3% expected them to drop by more than 25 basis points.

FEATURES 14

people and taking the time to get to know them. “I enjoy listening to people and having a laugh with them. I was fortunate to be brought up in a really good family when I was younger, and my mum always used to say, ‘Don’t judge a book by its cover; always read the whole novel. You never know; they could be the most interesting people you’ve ever met’ – and it’s true, and that’s what I’ve always taken along the way.”

COALFACE

LEARNING A NEW GAME Former Socceroo Joel Griffiths on his new chapter

IN THE LAST issue of Australian Broker we reported that Sydneyborn football pro Joel Griffiths had taken on a second mantle as broker and principal of Aussie branch The Junction in Newcastle, after becoming accredited in June this year.

The veteran striker’s football career has been put on hold since he snapped the ligaments in his knee while playing for Wellington Phoenix in New Zealand. And while on the mend he has launched into the brokerage full-time, joining his wife and school friend, who have both been broking since the branch opened in October 2014.

“It was always in the back of my mind,” says Griffiths on a career in broking. But even teaming up with the likes of Aussie, he knew it would still be a challenge, and eight months in they are just starting to get referrals from existing clients.

“Anyone that has set up a business from scratch would be able to understand how hard it is – but I never thought it was going to be easy either,” he says.

“I felt like a number. I didn’t really feel that I was looked after,” says Griffiths, explaining his passion to reverse that experience for his own customers and make

“I’ve sat in that chair before on that side and I know how it can be – especially when you’re buying your first property” When his athletic career took him to China from 2010 to 2014, Griffiths explored forex trading in his spare time, which he says taught him a lot about the finance world, and which he still enjoys today. But what really drove him to become a mortgage broker were his own experiences in buying property.

the loan process stress-free and personal. “Because I’ve sat in that chair before on that side and I know how it can be – especially when you’re buying your first property.”

Griffiths seems well on his way to making this a reality for every client, saying the best part of his new role is meeting different

Broking with Aussie Griffiths chose to join Aussie after his friend Luke Torossian, principal of Aussie Engadine, highly recommended the franchise and the mortgage broking profession. “It was always Aussie; I didn’t even look at the other franchises. I’m pretty comfortable with where Aussie’s going and what I can do up here [in Newcastle] as well.”

Not one to wait around for the phone to ring, Griffiths has been focused on bringing new business in and getting the branch name out there. “We’ve got a lot of things in the pipeline at the moment,” he says. “We’re sponsoring a soccer team next year and going to get our logos on the shirts. So we’re constantly thinking of ways to bring people through the door.”

Going from football to broking is a sharp transition in industry and lifestyle, but there are still parallels between these very different professions. Becoming a top broker requires the same discipline, determination and hard work demanded of a top athlete.

“I’ve been doing my football career for 17 years and all of a sudden I’ve got my own business,” says Griffiths on comparing his two careers. “But you’re building something that’s yours, and that’s what I love. I can really think about ideas and ways to actually build that business up. You’ve still got to score goals, right?” he adds with a laugh.

Football days aren’t over yet?

Griffiths has been playing the much-loved sport for most of his life. He started off when he was six years old, signed on to his first professional contract at 17, and at 35 he says he’s nearing the end of the run of his athletic career.

But not quite yet. In light of his injury, whether he has retired or not is something he gets asked often. “It’s a knee injury that I’m not sure about; I’ve never had it before,” says Griffiths, explaining that he is taking it week by week.

“In the meantime I’ll do everything I can, because I think I owe it to myself to actually give it every shot to come back.”

16

COVER STORY

UNIQUE SUPPORT FOR UNIQUE BROKERS Choice CEO Stephen Moore says aggregators will succeed by being sensitive to brokers’ individual needs

LAST MONTH SAW Choice Aggregation Services hit a significant milestone as its trail book passed the $50bn mark. The result came on the back of record settlement growth of 28% year-on-year for the year ended September 2014.

Choice chief executive Stephen Moore said the milestone was indicative not only of the strength of Choice’s broker network but the strength of the overall broker proposition.

“The $50bn milestone is really a testament to the strength of our members’ businesses, and that’s on the back of strong growth in consumer use of the broker channel. The majority of loans now go through the broker channel,” Moore said.

Moore said the aggregator was continuing to swell its ranks. In addition to helping its broker network grow their businesses by adding staff, he said the company was focused on both retention and recruitment.

“Choice is known as a business where members absolutely stay with us. We’re increasingly also focused on recruitment. With increased recruitment into existing businesses and new agreement holders, since 2013 we’ve put on more than 500 brokers. By the end of September, we will have put on more than 300 brokers this year alone,” Moore said.

Moore has been vocal in the past about Choice’s proposition to brokers, dubbing the aggregator “unashamedly” a full-service offering. He said this is part of what has attracted brokers to the model.

“We’re confident that we deliver tangible benefits to members. The high support model that we provide makes a significant difference to helping members grow their businesses.

That comes down to the core of our proposition, which is better advice through better listening.

It allows us to tailor up not only the advice we provide to members, but to give support tailored to their needs,” he said. “The high support model is not only attractive to existing members, but it’s

certainly attractive to any brokers looking to grow their business.”

Another key to the aggregator’s offering, Moore said, was the opportunity for brokers to choose a business model best suited to them. For some brokers, he said this was the wholesale aggregation offering, while others were more drawn to the aggregator’s branded franchise model.

“We believe in choice of the type of business

Moore said Choice would also be offering enhancements to its marketing support for brokers.

“Later in the year we’re launching an enhancement to our CRM and marketing capabilities in social media. When members are telling us that marketing is priority, what they’re saying is that growing their businesses is a priority, which is a great place to be,” he said.

Moore said Choice also had support tailored to helping its top-tier brokers continue to grow. He said larger broker groups faced unique challenges, and that the aggregator was looking to provide support to meet those challenges.

“For high-performing groups, there are a different set of challenges. That may be around attracting staff. It might be about branding or expanding interstate. We have a new forum called the Top Group Summit. We’re working with the top members in Choice and helping with their businesses, and that also has a peer-to-peer focus,” he said.

But large or small, Moore contended that the company’s model was to learn about brokers’ businesses and goals and provide individual support.

“Tailoring support applies irrespective of where members are in their business, whether they’re just starting out, all the way through to national groups,” he said.

This tailored support is something Moore sees as a key to success for aggregators moving forward. As brokers come to expect more from aggregation platforms, Moore said those aggregators who were sensitive to their members’ individual needs would be those that succeeded.

“One of the challenges for aggregators is

“Tailoring support applies irrespective of where members are in their business, whether they’re just starting out, all the way through to national groups” model, whether that’s operating under their own brand, whether that’s joining existing groups, or whether it’s joining Choice Home Loans. We work with members to find what’s best for them, and we find that’s a very appealing offer.”

More to come Moore said Choice was continuing to roll out enhancements to its service proposition in the months to come. Key to all these enhancements, he suggested, was the fundamental philosophy of tailoring support to brokers’ needs. He touted the company’s peer-to-peer learning sessions as an example.

“We run over 100 peer-to-peer learning sessions every year, and the agenda of each session is directly agreed upon and shaped by the individuals in the groups. We find that works outstandingly well, and it’s not only helping members grow their businesses, but it’s very attractive to new brokers coming into Choice,” he said.

to continually evolve to meet changing broker needs. That will differentiate the aggregators who will be successful well into the future and those that will not. The key to that is spending time to understand each broker and their individual needs, and ensuring support is tailored up to those needs at any one time,” he said.

And while Moore said the group was pleased to hit its $50bn mark, he said it would continue to look for new ways to provide support to its membership.

“When you achieve a key milestone in business, some can rest on their laurels on that, but the message for Choice and for brokers is that we’re never going to rest on our laurels. We will always continue to provide more, faster and better service for our members.”

18

SPECIAL REPORT COMMERCIAL QUESTIONS ANSWERED Brokers looking to diversify their income could benefit from a sound knowledge of the commercial market. But commercial deals can be tricky for the inexperienced.

Lenders share some of the finance deals they’ve been able to make a reality for brokers and their clients ING DIRECT The scenario: Broker approached ING Direct with a refinance scenario for a client that had been banking with another institution for over 25 years.

This broker had built a strong relationship with the client and wanted to split his banking and transfer some core debt to ING Direct, leaving some other facilities with the existing institution.

On completing a needs analysis for the client, the broker confirmed the customer wanted a low rate, a lengthy loan term and a set-and-forget facility. The loan amount required was $4.3m with a company turnover of approx. $30m. The broker was aware the structure was complex with several trading entities and property trusts involved, however the broker wanted to establish himself as the relationship manager for the group moving forward.

The solution: Loan was approved on a principal & interest basis over a 20-year loan term. The broker also took advantage of our low commitment fee promotion of $500 and competitive fixed rates, resulting in the customer fixing their interest rate for three years.

The takeaway: The appeal to the broker in dealing with ING Direct for commercial loans was that we deal exclusively with the broker in this transaction.

Our structure allows the broker to maintain full control of the client relationship during the application process. Our products suit brokers looking for a variety of lending needs for their business customers including loans for mix zoned properties and child care centres for example. Our low entry costs and competitive fixed rates enable a cost-effective refinance to benefit the client. Our broker partners have confidence when referring their clients to ING Direct, aware of our industry leading customer satisfaction and net promoter score (or customer advocacy).

Mark Woolnough, head of third party distribution, ING Direct

19

LA TROBE FINANCIAL The scenario: Self-employed applicants had been operating their business for eight years and had recently signed a Contract of Sale to purchase the business premises via their SMSF with settlement due on 30 June 2015. Purchase price was $500,000 and the applicants were looking to raise 70% LVR via a commercial SMSF loan. Following lodgement of the application with a major bank, the applicants encountered two challenges: one of the applicants had three “paid” trade-related defaults totalling $48,000 on their credit report, and the SMSF would only have net assets of $250,000 following the completion of the purchase –$50,000 below the minimum threshold imposed by the bank. Due to the defaults, and the SMSF’s net asset position falling below the bank’s minimum threshold, the application was declined after four weeks in the system.

THE MFAA’S PUSH TOWARD COMMERCIAL

The solution: With regard to the first challenge, our Credit Analyst spoke to the introducing broker about the trade-related defaults and found that the defaults were incurred five years ago due to a major client failing to pay them for a six month period. All defaults were subsequently paid and each of the creditors still deal with our client.

We treated this as one “credit event” (which is acceptable under our Commercial SMSF product). The second challenge relating to the net asset threshold simply isn’t a challenge for us at all as we do not have a minimum net asset threshold on any of our SMSF loan products.

We were able to complete the transaction for the applicants at 70% LVR as requested, and completed it within five days of receipt to ensure the 30 June 2015 completion date was met. The broker was also pleased with the quick turnaround as the loan settled just in time to qualify him for his aggregator’s commercial conference.

The takeaway: Having specialist options across multiple asset classes allows brokers to structure better solutions for their clients. Specialist lenders are a great alternative for brokers and their clients when the major banks are unwilling to assist – including commercial transactions. This is the most commonly understood benefit which specialist lenders offer: keeping brokers and their clients achieving their goals. Assisting those that are under-served by the major banks has been at the core of La Trobe Financial’s service proposition since its inception over 60 years ago. Specialist lenders deliver much faster than major banks and keep the process simple. A significant part of a specialist lender’s value proposition is speed to market. In this case study it took four weeks for the major bank to uncover two problematic components that are fundamental to the credit acceptance criteria for its SMSF loan product, whereas we were able to go from start to finish in five days, delivering a solution in time for both the broker and their client.

Cory Bannister, head of distribution, La Trobe Financial

The Mortgage & Finance Association of Australia (MFAA) has a range of education and marketing solutions for brokers in the commercial lending sector. A key initiative is the ‘Introduction to Equipment & Commercial Finance’ eLearning program which builds the knowledge and skills of new commercial finance brokers and provides an opportunity for existing residential finance brokers to diversify. There will be further learning programs and peer to peer learning opportunities coming soon.

There are free LinkedIn marketing programs for small business owners to promote the MFAA commercial broker search engine to 691,000 business owners each month. Their LinkedIn broker discussion group engages close to 5,000 industry professionals, and is the second biggest broker network in Australia.

The MFAA produces 30 free SME consumer articles, specially designed for EC&F Finance Brokers to engage customers on their websites, social media that can be used to drive key word search and improve search engine optimisation (SEO).

The MFAA has also recently launched a new Traineeship program that provides the opportunity, support and career pathway for school leavers to develop valuable on-the-job skills, obtain qualifications and be part of the mortgage and finance industry.

Finally, as part of a reciprocal arrangement between MFAA and the Commercial Asset Finance Brokers Association of Australia (CAFBA), monthly educational webinars are held to assist with key challenges for all commercial and asset finance brokers within the industry.

FEATURES 20

THINKTANK

NAB COMMERCIAL BROKER

The scenario: Thinktank was recently able to help two brokers. The initial transaction from Broker 1 was a $2.3m refinance and debt consolidation for an owner-occupied manufacturing business in QLD at 75% LVR. Broker 1’s customer then saw an opportunity arise to sell the business, retain the underlying property and rent it out on commercial terms to the purchaser. However, the debt consolidation and refinance would still be required. Broker 2 initially approached a major institution on behalf of their client seeking assistance with finance for the business purchase which was to be completed through a combination of borrowed funds supported by their own commercial property and vendor finance. Unfortunately, the bank subsequently advised it was unable to assist. However, with the comfort gained by Broker 1 and their client, they referred the purchaser to Thinktank.

Broker 2 then engaged Thinktank’s assistance to concurrently re-finance the purchaser’s existing loan and provide cash out to support the business purchase.

The solution: Broker 1 client: Thinktank provided a 75% LVR, 25-year set and forget loan term to consolidate facilities and fully retire any residual creditors of the business being sold. This importantly allowed the client to simplify their liabilities into a single, easily managed long term investment loan.

Broker 2 client: Thinktank was able to refinance the existing loan for the incoming entity and provided equity release sufficient to complete acquisition of the business. An initial interest only term of five years was provided so as to minimise the cash flow implications from the higher debt level, including provision for the vendor finance terms (three years P&I repayment), thereby allowing the purchaser sufficient working capital and free cash flow to consolidate and develop the new business.

Each of the facilities for the respective borrowers were documented on set and forget terms over 25 years with no annual reviews, ongoing fees or compulsory revaluations.

The takeaway: Get the right people involved. In every property transaction involving a transfer of asset, there is a buyer and seller, each with different but ultimately linked objectives. Brokers should therefore keep in mind that they can potentially add value on both sides of a transaction, particularly when an impasse might arise. With commercial lending, the best solution is not just about the quoted interest rate. On both sides of this transaction, the central consideration involved properly managing the cash flow impacts of the loan structures in the immediate, and for the longer, term. On this occasion, both brokers were able to deliver tailored funding arrangements to support their client’s requirements and had confidence from the involvement of a single, capable lender providing a considered solution and effecting a timely settlement.

Peter Vala, head of sales and distribution, Thinktank

The scenario: Our client had been in business for over 40 years and had banked with a competitor for most of this time.

Their business had several different family shareholders who were ageing, and new management looking to take advantage of changing market conditions.

Though the business had significant assets, their previous bank placed little value on these, preferring to secure their debts on a traditional basis over residential and commercial property along with a general charge over the business.

The client, through their accountant and broker, felt the bank could offer better terms that included reducing the property security provided and structuring a facility to improve overall business cash flow.

The solution: Working collaboratively alongside the client’s broker, NAB’s commercial broking banking relationship team, equipment finance specialists and in-house credit team were able to go through the client’s situation step by step. Through this process they were able to better understand the nature of their business, balance sheet and cash flow.

NAB then became comfortable to secure the facility purely against the plant and equipment of the business, releasing property security and the guarantees of the ageing shareholders.

The takeaway: The success of this transaction required a solution outside of the traditional property security lend, so it really came about through the broker’s active engagement with NAB early on in the transaction.

As a result of this all parties were able to brainstorm together around the multiple options available.

It then required the trust of the broker to participate in joint meetings with the client and the whole NAB team before approval stage, to ensure any solutions were going to meet the client’s short and long-term needs.

Equally importantly, the client felt throughout the process that they would have an ongoing long-term relationship both with their broker and with NAB.

Craig Bull, WA state manager, NAB Commercial Broker

TYPES OF COMMERCIAL PROPERTY

A GUIDE FOR INVESTORS Retail Retail doesn’t have to be limited to huge shopping complexes or malls. The local strip can often provide a wide variety of smaller but by no means less profitable investment options. Finding an appealing area with good exposure, good parking and easy access is key. Competition for quality retail assets is strong. Beachfront or village-style centres often provide highly sought-after properties.

Office The office investment market saw another record year in 2014, with over $17bn worth of product traded. Whether running a small start-up business or managing a series of interoperational departments, companies will always need office space. Over the past five years there has been a considerable surge in demand for strata offices. Costing anything from $136,000 upwards, these properties can provide multiple income streams, thus de-risking your investments.

Industrial From the bloke who fits a new alternator in your car to the company developing machines that make fridges, these businesses all need warehouses, workshops and depots. Due to the unique nature of industrial businesses, these properties can range from small to large, with a variety of purpose-built features.

Construction of industrial property tends to be faster and simpler than it is for other commercial developments, typically reducing the fluctuations between supply and demand. Yields tend to be higher than for other commercial properties, and growth is tied directly to the economy.

Car parks Car parks in the city are always in high demand. Whether it’s a 500-space Wilsons parking building, a small lot downtown, or even a single space in an apartment block, space is being snapped up. This can be an easy way to hold a lower-cost property while waiting for capital gain.

Storage Storage provides a wide range of investment opportunities, essentially based on the size of the storage facility. On a small scale, storage units are a popular option. Low maintenance costs coupled with growing demand makes this an appealing option for the savvy investor.

On a larger scale, the demand for logistics and distribution centres is on the rise in Australia. Due to the need to adapt to the ever-changing world of e-commerce, companies are looking to claim their stake in rail, road and port hubs.

22

MARKET WRAP

BY THE NUMBERS

MARKET TALK

AUSTRALIA’S NEW FOREIGN INVESTMENT HOTSPOT

161%

Chinese property investment on Queensland’s Gold Coast in Q2 was up 161% on the first quarter of 2015 and up 1,120% over the year to June

Source: Juwai.com

Foreign investors are flocking to a new spot CHINESE FOREIGN investment in Australia has a new hotspot, with purchasing intent increasing by more than 1,000% in this city in the year to June.

According to Chinese global property portal Juwai.com’s Purchasing Intent Index for Q2, Chinese property investment on Queensland’s Gold Coast is up 161% on the first quarter of 2015 and up 1,120% over the year.

As a state, Queensland is the most popular destination for foreign Chinese money, overtaking previous property hotspots NSW and Victoria. According to the data, purchase intent in Brisbane is 12% higher than a year ago, and Townsville is up 4% on last year.

Juwai.com’s Purchasing Intent Index measures Chinese interest across different cities and states by tracking online property hunting activity through its portal, which connects Chinese buyers with international agents.

“Queensland cities have not been the most popular with Chinese buyers over the past five years, but they are growing quickly,” Simon Henry, co-CEO of Juwai.com, told News Limited.

“Sydney and Melbourne could lose some investment to Queensland as a result.

“The Gold Coast is doing particularly well this year, especially as buyer interest temporarily reached a low point in 2014.”

According to CoreLogic RP Data’s June Home Value Index, Brisbane recorded the third-largest year-on-year growth out of the eight capital cities.

With annual growth of 3.4% over the 12 months to June, Brisbane is in an up-cycle but has still not hit the peaks of the 16.2% and 10.2% growth seen in Sydney and Melbourne respectively – so it is understandable that Brisbane and its surrounding cities are sought after by keen foreign investors.

Henry also told News Limited that the increase in interest was because Chinese buyers today are different than the Chinese buyers of two or three years ago.

“Then, they were typically firsttime buyers with little experience in international real estate markets. Today, they often already own a property in Australia or another country, and they are more comfortable with the country, the language and the market,” he said.

John Flavell

MORTGAGE CHOICE CEO HAS MESSAGE FOR LENDERS The chief executive of Mortgage Choice has a message for lenders who have increased interest rates on investment lending.

New data from Mortgage Choice’s Investor Survey found that 54% of potential investors said they would still like to go ahead with their investment plans, despite restrictions making it harder to do so. However, Mortgage Choice CEO John Flavell says the data tells a very different story when looking at the responses from potential Gen Y investors.

“Just 45% of those born between 1980 and now said the investment changes wouldn’t affect their property plans, meaning most would be affected by the changes,” he said.

“Baby boomers, by comparison, were far less likely to be put off by the changes, with just 30% saying any changes would affect their property investment plans.”

According to Flavell, this means it is those who would benefit most from investing that will be hit the hardest.

“Our data shows an increasing number of investors are actually Gen Ys who are purchasing property for the first time. For many younger buyers, purchasing an investment property before an owner-occupied property gives them the opportunity to purchase where they can afford while still living where they want.

“We should be encouraging these people to buy property, not hindering them at every turn. Unfortunately, the changes many of the lenders are making are putting these buyers off.”

Flavell therefore has a message for lenders. “If lenders are going to continue to make substantial changes to their investment lending policy and pricing, they need to consider who they are trying to impact,” he said. “If the goal is to stop first home buyers and mums and dads from purchasing investment properties, then mission accomplished.

“If lenders are just trying to curb their overall level of investment activity, then perhaps they should consider pulling other levers that will impact cashed-up investors and foreign investors.”

23

MARKET TALK

REGULATOR TAKES ON SPRUIKERS The Office of Fair Trading has taken on unscrupulous property promoters NEARLY 20 property spruikers have had various legal proceedings brought against them following an in-depth examination of the real estate industry.

The Queensland Office of Fair Trading (OFT) revealed yesterday that 10 traders have had legal action taken against them and another seven have agreed to legally enforceable undertakings after a two-year operation by consumer

protection regulators across the country.

A total of 67 education/warning letters were also issued.

OFT executive director Brian Bauer said the investigation had found it was commonplace for property promoters to behave inappropriately, including misleading investors about financial benefits and the cooling-off period and also pressuring people to purchase properties.

“The conduct of these promoters has been clearly designed to maximise profits, to the detriment of consumers who are given false promises and railroaded into deals that aren’t right for them,” Bauer said.

While the announcement from the OFT was welcomed by the Real Estate Institute of Queensland, one property professional thinks more should be done.

“Honestly, I think the Office of Fair Trading and other agencies should be doing more,” said Zoran Solano, buyer’s agent at Hot Property Specialists Buyers Agency.

“When you consider how many people there are in the property industry across Australia, that’s a pretty small number of people to come down on, and there would definitely be more than that who are doing the wrong thing,” Solano said in reference to the 17 traders who have had legal proceedings brought against them.

While he believes there are more dodgy operators out there, he said the majority of people in the profession were doing the right thing.

“Historically the real estate industry has been looked upon with distaste, when really that shouldn’t be the case as the vast majority of people play by the rules.

“Those that don’t really do tarnish the industry, which is disappointing.”

24

MARKET WRAP FINANCIAL SERVICES

SMSF BORROWING SAFE A superannuation peak body has claimed SMSF borrowing will be safe, despite FSI recommendations

There is unlikely to be a complete ban placed on SMSF borrowing in the wake of the Financial System Inquiry (FSI) recommendation, the SMSF Association has said.

The FSI recommended that direct borrowing from SMSFs using limited recourse borrowing arrangements (LRBAs) to purchase property should be prohibited. According to the final report, SMSF lending magnifies risk and can cause a concentration of fund assets.

However, the director of technical and professional standards at the SMSF Association, Graeme Colley, says there are “positive signals” coming from the government, suggesting it is unlikely that SMSF borrowing will be banned.

According to the FSI, the amount of funds borrowed using LRBAs has increased 18-fold over five years, from $497m in June 2009 to $8.7bn in June 2014. But Colley says the SMSF Association has never agreed that the risks posed by LRBAs justified a total ban.

“As the evidence highlighted in the Intimate with Self-Managed Superannuation report released yesterday showed, LRBAs, as a percentage of total

SMSF assets, are still a small percentage of the total pool. They are increasing, but not to a position where they are a threat to the system,” he said, speaking at the Sydney State Technical Conference in July.

“In light of this evidence, the Association’s view is that by implementing some measures to mitigate risk, then LRBAs have a viable role to play in SMSFs.” Such measures may include the licensing of LRBA advice, greater resourcing of ASIC to crack down on spruikers, limiting the use of personal guarantees, and establishing best practice guidelines.

However, LRBAs aside, Colley says the SMSF sector is entitled to take a vote of confidence from the final FSI report – which made no other recommendations to curtail their activity.

“The lack of comment about our sector, especially in light of some of the issues raised in its interim report, can only suggest that David Murray and his fellow members of the inquiry were relaxed about the state of play with SMSFs. “Perhaps we shouldn’t be surprised.

In 2010, the Cooper Review came to a similar positive view about the SMSF sector.”

ASIC CUTS RED TAPE ON FINANCIAL DISCLOSURES ASIC has unveiled new digital disclosure measures for financial service providers in a bid to cut red tape and enhance consumer understanding in a digital world.

The regulator has released new guidance and waivers for businesses providing disclosures through digital channels, to encourage more efficient communication of information about financial products and services.

ASIC commissioner John Price says the new measures are in response to how consumers interact and communicate in a digital world.

“The measures announced today respond to changing consumer preferences, with ever-increasing numbers of people transacting digitally. Almost 15 million Australians now have a home internet connection, and 68% of those online are using three or more devices to access the internet,” he said.

According to Price, the changes will see product disclosure statements and other financial services disclosure documents delivered to consumers digitally as the default option, unless the consumer opts out.

“This will reduce the costs of printing and mailing for businesses, while preserving choice for those consumers who wish to receive paper,” he said.

“ASIC wants industry to harness the opportunities of digitisation, and is encouraging the use of more engaging forms of communication using digital media – interactive, video and audio. This can boost consumer understanding of financial services and products.”

FAST FACT

10.7%

Increase in consumer credit demand in June 2015 quarter compared to same period last year

Source: Veda

NEW INVESTIGATION APPROACH COULD BE COSTLY ASIC has revealed that it will now use its power to recover the expenses and costs of its investigations.

Previously, the regulator would pay the investigation expenses that it conducts, but that is set to change.

“To date, ASIC has rarely recovered its investigation expenses and costs,” ASIC said in a statement.

“However, ASIC has reviewed its approach and considers that it should more frequently seek to recover the expenses and costs of an investigation from

the person who has caused those expenses and costs to be incurred.

“Accordingly, ASIC will consider making an order for the recovery of its investigation expenses and costs in each case where the legislative requirements are met.”

ASIC noted that under s91 of the Australian Securities and Investments Commission Act 2001, the regulator may make an order to recover investigation costs in the event of a successful prosecution or civil proceeding.

26

SPOTLIGHT VIDEO SPOTLIGHT

ONE YEAR ON

A YEAR OF COMMISSION SHAKE-UPS What a difference a year makes ... or not.

Australian Broker reflects on the punditry, new and trends that made headlines 12 months ago

80 bps

AUGUST 2014

Suncorp announces a shake-up of its commission structure that sees it remove conversion hurdles and hike its upfront commissions from 50bps to 65bps

25bps FEBRUARY 2015

Australian Financial raises its upfront commission to 80bps and its trail on most products to 25bps

MARCH 2015

The Reserve Bank warns lenders that increasing broker commissions could create “significant amounts” of risky lending

APRIL 2015

Mortgage Choice chief John Flavell rejects recommendations of the Trowbridge Report calling for a cap on life insurance commissions

MAY 2015

Melbourne broker Andrew Larcombe argues that chasing commissions can cost brokers their clients

Emily Watson

IS YOUR SOCIAL MEDIA STRATEGY EFFECTIVE? More than 60% of Australia’s population is now on Facebook, and social media is becoming an indispensable marketing tool for businesses. While most brokers know they need to use social media in their marketing, it can be difficult knowing how to use it effectively. MFAA digital and social media manager Emily Watson recently gave Australian Broker TV her top tips for getting the most out of social media marketing.

First and foremost, Watson said, is accepting that social media can no longer be ignored.

“Love it or hate it, social media is here to stay. At the moment we’ve got almost 14 million users on Facebook, which is almost 60% of the Australian population. LinkedIn is growing, Twitter is growing, so it’s really important for brokers to jump on board with this,” she said.

Watson said it’s important to avoid some of the common mistakes brokers make when trying to engage with social media.

“Quite a few like to jump in without really getting to know the platform.

The number of brokers that I speak to with their social media advice, the first thing I tell them to do is actually get a personal account and get to know Facebook first,” Watson said.

27

Want more? Have an opinion? www.brokernews.com.au

BEST FORUM COMMENT

FORUM

LENDERS MISSING THE POINT Mortgage Choice’s CEO has a message for lenders who have hiked investor rates

LENDERS HAVE made rapid moves to cool off investor demand in the wake of APRA guidelines regarding capital requirements.

The past weeks have seen banks announcing rate hikes on investor loans. But Mortgage Choice chief John Flavell says a survey by the franchise brokerage shows the moves to use blunt tools to soften investor demand have been ineffective.

Paul said the regulators rather than the lenders were to blame for the blunt approach.

“The regulators are the one to blame for this blunt approach. Why is it possible in NZ for LVR’s and lending criteria to be amended for investment purchases in the AKL region only rather than a nationwide restriction be put in place. The end result of the changes in Australia will be the exclusion of those who would benefit from undertaking investment and the dampening of activity in markets outside Sydney and Melbourne that could well do with more activity. Once again the regulators have proven themselves to be out of their depth when considering policy.”

Soula Chatswood said the moves would end up hurting the wrong end of the market. “[The] asset rich will not be affected, only the younger buyers desperate to get in the property market (with investment properties) while still living at home because they can’t afford to leave home. Come on, the industry

needs to speak up to support FHBs!” Steve McClure lamented that brokers were left out of the discussion.

“It is really disappointing that there has been no defined strategy, consultation and direction of the measures with brokers. Announcements ‘as at now’ are made, with deep ramifications for clients. Are we not business partners? If so, is that how you do business?”

GC said the government was continuing to take away investment options.

“Is the government going to advise which investment vehicle they would like us to invest in? They constantly screw around with superannuation making it a pathetic investment, and now they are trying to completely wreck property investment as a decent investment vehicle. Then they bitch about the cost of supporting people in retirement. As far as I am concerned the government have absolutely no right to tell us what we can invest in or interfere and try to control it in any way. This absurd notion that investment lending is risky needs to be addressed. It is no more risky than domestic lending and in fact I feel it’s less risky as there are multiple revenue streams helping to pay the mortgage. The biggest issue of all of this is that first home owners will now find it harder to buy a property to call home due to rental increases.”

LENDERS PULLED THE WRONG LEVER Lenders have made moves to curtail investment lending and meet new APRA guidelines by hiking rates on investment loans. According to one commenter, they may have been looking at the wrong lever to adequately cool investor demand.

“I still believe the lever they should have adjusted is the LVR. If you want lower risk lending into the investment property market, reduce the LVR to 70%. Increasing interest rates hurts the economy, by reducing disposable income. Will push up rents in hot spots and will need to be absorbed by landlords in the less popular areas.

Both actually increase the risk of default. Lower the LVR, more equity, possibly provides positive cash flow and does not put pressure on rents.

Still reduces investment lending by requiring more cash from the buyer, but deals that are completed are at lower risk. APRA appear to have provided the opportunity to improve bank margins.”

FC on 31/07/2015 at 12:46PM AMP SHUTS DOWN INVESTORS AMP copped a hiding from brokers over its decision to shut down new investment lending for the immediate future.

“Ouch! I feel for the existing investment customers at AMP, many of whom now cannot refinance due to more restrictive policies coming into place” Brissie Broker on 29/07/2015 at 11:41AM

“Another fair weather lender.”

Terry S on 29/07/2015 at 12:03PM

“I’ve been accredited with AMP for over 12 years, and they have never given me a reason to write a loan with them. Looks like nothing has changed!”

Broker on 29/07/2015 at 4:16PM

28

PEOPLE AGGREGATOR INVESTS IN WOMEN IN BROKING

Chris Anstey

FAST has wrapped up a series of events bringing together women in the mortgage broking industry

LA TROBE TIPS FORMER NBA PLAYER AS COMPANY AMBASSADOR

FAST RECENTLY wrapped up its Women in Business event series for the third year running.

The aggregator says the events – held across Sydney, Melbourne, Adelaide, Brisbane and Perth throughout July – offer female brokers a forum to network and gain insights from both their professional peers and the renowned, high-quality speakers.

This year, media icon and entrepreneur Mia Freedman was the keynote speaker. Freedman is co-founder of the successful Mamamia Women’s Network.

“We were thrilled to bring such a renowned female leader to this year’s Women in Business event series.

Mia Freedman has built a remarkable career, and her honest account of balancing work and life commitments was a highlight of the day,” said Rob Ryan, FAST head of NSW/ACT and Queensland.

Speaking at the event, Freedman shared her experiences and advice for finding success.

“The first is the negative effect of the way women compare themselves constantly to others. Notably,

we compare our ‘behind-the-scenes’ to other people’s ‘highlight reels’, which is never going to end well! The other is about knowing when to ‘lean in’ and when to ‘lean back’. That’s a really important conversation we need to keep having,” she said.

Another key speaker, Matina Jewell, spoke at the Perth event. During her 15-year military career, Jewell tracked down warlords, worked with US Navy Seals, and successfully led a UN peacekeeping mission in Lebanon.

Ryan says FAST is proud to be the only aggregator with a dedicated professional development program for women.

“Women have a powerful role to play in the broking industry, and FAST wants our female brokers to be the industry’s most successful.

“Offering both a flexible work-life balance and an opportunity for entrepreneurship, mortgage broking represents a great career path for women. We’re dedicated to helping women thrive in this exciting, ever-evolving industry.”

La Trobe Financial has appointed former NBA and NBL player and two-time Olympian Chris Anstey as a new company ambassador.

Anstey joins current company ambassador and five-time Olympian Jacqui Cooper.

“As an elite athlete there are many challenges and hurdles, but it takes commitment, persistence, performance and excellence to make goals happen, and it’s no different in funds management or any business,” Anstey said.

La Trobe said Anstey would attend conferences and professional development days for the company, as well as speaking on overcoming challenges. Anstey racked up three seasons in the NBA, and was also a three-time NBL champion. Anstey said his athletic career taught him the importance of team culture and leadership in various environments.

“This has relevance for organisations which are already or wanting to operate internationally and build winning teams in different countries – the fundamentals of successful teams never change,” he said.

MOVERS AND SHAKERS AGGREGATOR TAPS NEW STATE MANAGER eChoice has appointed an ex-NAB relationship manager to manage its brokers in Victoria, SA and Tasmania.

Melinda Batt will join the aggregator from NAB, where she was the national relationship manager of its Advantedge Financial Services Division and responsible for the distribution of mortgages through third-party channels.

Prior to that, Batt held relationship manager positions at Challenger and Interstar, where she handled the development and distribution of their white label mortgage management businesses. eChoice’s general manager of sales and distribution, Paul Liccione, said Batt’s appointment was critical to adding additional depth to its management team.

“Melinda is widely respected throughout the industry for the roles she has played with several notable mortgage organisations as a key contributor to their business success. We are excited she has accepted the opportunity to apply that proven expertise to the next important business phase for eChoice,” he said.

P2P LENDER ANNOUNCES IMPORTANT APPOINTMENT Australian peer-to-peer lender SocietyOne has nabbed the former vice president of a world-leading marketplace lender headquartered in the US, in a move it says shows the strength of Australia’s growing P2P channel.

SocietyOne announced that Mitchel Harad had joined the company as chief marketing officer. Harad was formerly the vice president of marketing at Lending Club.

As leader of Lending Club’s borrower marketing efforts over the past four years, Harad was responsible for growing the marketplace lender’s quarterly loan volume more than 30-fold – from US$50m when he joined the company to US$1.6bn (A$2.2bn).

“Mitch has an amazing track record and was a major contributor to Lending Club’s growth,” said Matt Symons, CEO and co-founder of SocietyOne.

BOOK YOUR TABLE NOW FRIDAY 30TH OCTOBER 2015 THE STAR, SYDNEY www.australianmortgageawards.com.au

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30

INSIDER

FINACIAL SERVICES

ANGRY BIRDS MAKES REALLIFE DEBUT An aggressive avian has managed to cause thousands in damage INSURERS HAVE had to step in after a particularly plucky peacock caused over $6,000 worth of damage to cars by attacking his own reflection.

Percy the peacock has been causing havoc at a countryside visitor attraction in the UK by getting a little too riled up during breeding season, and the attraction’s insurers have had to step in.

The seven-year-old male has been confined to his quarters after the attraction’s insurers told the manager, Richard Craddock, that premiums could skyrocket due to the damage he has caused, the Daily Mirror reported.

“Visitors love Percy, he is very much part of the experience here,” Craddock said.

“But he thinks his reflection is a rival and this has meant that he has caused some damage to vehicles.

“As soon as he spots his reflection he’ll charge at it and start pecking like mad.”

Craddock said the insurers stepped in thanks to a costly incident involving a BMW a year ago.

“Our insurance company said we can’t afford to have him outside anymore, and to be fair it’s not great having a peacock causing thousands of pounds of damage about,” Craddock said of Percy’s exploits.

“He jumps onto the cars and starts to really go at the windscreen pecking and scratching them.

“Last year he caused £3,000 [A$6,398] of damage to a brand new BMW, and he’s cost us thousands more over the years.

“So, reluctantly after discussions with our insurers, we are keeping him in his generous pen when the public are here during the months of June, July, August and September.”

Like for many a young, aggressive male, it has taken the female touch to calm Percy down, as he shares his new pad with girlfriend Priscilla.

“He had become such a nuisance with all the staff and visitors, so I’m glad Priscilla has sorted him out,” Craddock told the Daily Mirror.

“She’s already done a great job, I just hope they don’t lay another Percy.”

INSURANCE ADVISER HITS THE JACKPOT Life insurance adviser Lewis Gill has pledged to keep working for his firm after a scratch card his boss gave him for his efforts worth just over $2 proved to be a $212,000 winning ticket.

Gill had only been working for advisory firm LifeSearch Ltd, based in West Yorkshire, UK, for three months when he was given the scratch card for going ‘above and beyond’ with a client.

The 22-year-old said he felt sick when he realised what he had won and hoped it was karma repaying him for a few good deeds.

“I’m not particularly superstitious or anything but I can’t help thinking that this win was some kind of cosmic pat on the back,” the Daily Mail reported him as saying.

“That morning, on my way to work, I was in a good mood and wanted to pass on some positivity.

“So I gave up my seat on the bus, I let a couple of people ahead of me on the queue and I helped a fellow passenger with his bags.

“I even joked with colleagues when I got to the office that maybe the universe would repay me, and we all laughed and agreed that karma probably didn’t work like that.”

When Gill discovered his scratch card was the jackpot card he called his manager, Chris Vickers, out of a meeting, even offering to split the prize with him.

Vickers said his employee was kind-hearted, compassionate and a great worker. He offered the young adviser the rest of the week off to come to terms with his win, but Gill returned to work to finish some calls.

“I couldn’t have been happier for Lewis because of the way that he is, he could have walked out.

“If you imagine most people 22 years of age and won £100,000 (A$212,000) they would be gone. But he just did his job.

“He’s got his head screwed on and is going to stick around.”

Gill was even given a massive round of applause when he left the office that day.

Vickers admitted it would have been great to enjoy such a win himself. But he said: “Would I have taken Lewis’ money? No. “In fact, when he came out he sort of offered to split the money with me and I said ‘no, don’t talk silly’.”

Gill said after treating his colleagues to a few drinks on his winnings he planned to invest in some property, take a holiday, and help out his parents.

“Whatever I am going to do I’m going to be careful, this money has opened up doors that weren’t there before.”