For the past few years, banks and mortgage brokers have found themselves in the cross hairs with the talk of a property bubble.
In theory, that is due to culminate in the next weeks as ASIC makes recommendations on the way brokers should be paid.
Yet, the truth is, lending is being buffeted from many directions. Major change is under way – from which good brokers will profit.
The general consensus is that the ASIC review will be broadly supportive of the way that mortgage brokers are remunerated (through upfront and trailing commissions). However, it is anticipated that the ‘soft-dollar’ incentives from lenders are likely to be removed.
However, the biggest impact on brokers may well-be elsewhere. In this edition:
- APRA has issued new guidance which will see a further tightening of lending policies
- CBA is revoking the accreditation of some brokers
All this means that it is going to get even harder to get a loan and that the public will have more need of brokers than ever.
The banks remain committed to mortgage brokers, as NAB’s Anthony Waldron recently said “We are always grateful for the support we receive from brokers. Our success at NAB is tied directly to their success in the market and how brokers do the right thing by their customers.”
But, the crème rises to the top and for 2017 onwards successful brokers will have to work in a new paradigm. Here Graeme Salt give some tips on what not mistakes to make for new brokers.