Wednesday 4th December 2019

International brokers association welcomes Ireland as global expansion continues

Finance Brokers Association of Australia (FBAA) managing director Peter White has announced that Irish industry association, Brokers Ireland, has joined the International Mortgage Brokers Federation (IMBF) as the newly formed federation continues to expand into more nations.

Mr White was in Ireland recently and said Brokers Ireland understood the benefits of standing together and learning from one another in an increasingly globalised market.

“The recent banking royal commission highlighted just how governments and regulators are looking at overseas models for guidance on how to tackle issues in Australia, so we must be ahead of the curve, learning about other markets so we can understand what is working and what isn’t.”

The IMBF was formed last year by associations from Canada, USA, New Zealand, UK and Australia which is represented by the FBAA. Mr White chairs the Global Board of Governors.

He also revealed that Netherlands was a part of the IMBF as an associate, an important step given recent publicity around the ‘Netherlands model’.

“During the coverage of the royal commission, the Netherlands model was brought up in questions by the media, and some people in our industry had no idea what it was.

“This is unacceptable if we are to represent our industry to government.”

Mr White also said the IMBF was planning the world’s first international conference, even though dates and details are still being considered.

“The industry in Australia is better positioned than many other countries, but as we’ve seen recently, there is no room for complacence, as one major regulatory change can affect us all.

“Now more than ever before it is vital for the industry to be innovative and the FBAA is determined to be at the forefront, and we are proud to represent Australian brokers to the world.

“The IMBF works together and is reviewing best practice procedures to bring a global focus to the benefits of mortgage and finance brokers across the globe.”

Wednesday 20th November 2019

Togetherness and support is more essential to the industry than ever

While the banking royal commission was a challenging time for finance brokers, it helped the industry develop a united purpose, according to the managing director of the Finance Brokers Association of Australia (FBAA).

Peter White said the royal commission highlighted some of the major issues that will affect brokers into the future and believes the key to future success is to stand together with a common, industry-wide objective.

He said the recent FBAA National Industry Conference held on the Gold Coast, and other events like it, are vital to the sector’s health and believes the conference will be even more important on both professional and personal levels in the future.

“There is no doubt that while the industry collectively has worked hard to overcome recent challenges, different issues will arise and this is when a collaborative and unified approach is necessary.”

Reflecting on the recent FBAA conference – the first since the royal commission – he said the theme, “challenge the future”, was more relevant than ever before.

“The conference keeps our members and industry connected and removes the fragmentation of geography as brokers from all around Australia come together, but it also allows brokers to support each other and this cannot be underestimated in the current environment.”

He said the association intentionally took a holistic approach at the conference, because personal and business support go together.

“The address by mental health advocate Anthony Hart was possibly the most interactive and popular we’ve ever had, and this tells us what brokers need right now.

“Most brokers are small businesses and don’t have a large support network, and let’s remember that many have spent a lot of this year worried about their futures.”

Mr White said the importance of togetherness was highlighted at the association’s annual Awards of Supremacy, part of the conference’s gala dinner.

“Recipients were more emotional this year and it was clearly a big deal to be recognised for hard work and success.

“Standing with one another, championing one another – this is what our industry is about and I believe we must continue to build unity and a common focus.”

Wednesday 20th November 2019

FBAA announces new board appointments

The Finance Brokers Association of Australia (FBAA) has revealed its 2020 board members, state presidents, vice presidents and councillors.

Announcing the board, FBAA managing director Peter White said the association is well placed to tackle any challenges the future may bring, and is fortunate to have a large talent pool of experienced and knowledgeable people who can steer the FBAA in the right direction.

At the recent AGM, Tony Carter was reappointed as chairman and Chris Szigeti as vice chairperson and DRS chair. Kim Szigeti was reappointed as company secretary while Rick Nieuwenhoven, Steve Rasmussen and Angus Gilkeson remain directors. Angelo Lauro was appointed as a new director and Mr White also continues on the board as managing director.

“This is a team who understands our members and their needs because they are all successful brokers themselves. Our newest member Angelo Lauro will slot in with ease after many years of broking in the motor sector and his involvement with various committees,” Mr White said.

We welcome two new state presidents being Nick Wormald for New South Wales and Bernard Desmond for Victoria. Continuing in their existing state president roles are Christine Green for Queensland, Trent Carter for Western Australia, and Joff O’Shannessy for South Australia.

Mr White said the industry continues to evolve and the expansion of online options, as well as increased scrutiny following the royal commission will present plenty of challenges to the industry.

“I am proud that the FBAA was born over 26 years ago as a grass-roots, member-focused organisation that understands the needs of members, and I can assure all members that as your board we are committed to serving you and championing your needs in the years to come.”

He said the FBAA will continue to take a national industry-wide approach to ensure that brokers in all states benefit from personal development and other initiatives.

Tuesday 12th November 2019

Lower interest rates wasted without credit policy overhaul – finance broker association

Lower interest rates will be wasted and ineffective unless banks overhaul their credit policies, tightened following the banking royal commission, according to the Finance Brokers Association of Australia (FBAA).

Managing director of the peak body Peter White says while the focus has been on the RBA’s interest rate cuts, this alone won’t stimulate the housing market as banks are using unrealistic credit criteria to push legitimate buyers out of the market.

Speaking from the association’s annual industry conference – the first following the banking royal commission – Mr White said rigid credit policies were disadvantaging borrowers.

“We need a more considered approach to credit policy because right now there are borrowers with the capability to pay a mortgage that are being rejected for a variety of reasons.”

He said the Commonwealth Bank recently reduced the floor rate – or buffer between the actual interest rate and the rate used to calculate affordability – presumably because it was losing business.

“Banks are being forced to act because the market is flat, and we will no doubt see that other banks will follow.

“The FBAA has said before that the buffer used by banks is ridiculously obstructive to borrowers.”

He also said that small business people are struggling to obtain finance due to over tightened banking policies.

“In no way am I suggesting we loosen the credit criteria, but in an economy that needs stimulating, interest rate cuts are only a part of the solution.

“Denying legitimate and credible borrowers a loan due to credit policies that make no sense doesn’t help anyone.”

Wednesday October 24th 2019

Brokers should see accountability as opportunity

Greater accountability and further transparency for finance brokers including the best interest duty presents a unique opportunity for industry growth, and smart brokers will embrace it, according to managing director of the Finance Brokers Association of Australia.

Peter White says the industry should take advantage of the increased scrutiny to build greater trust with consumers, and believes brokers who have a positive, enthusiastic and customer-focused attitude will benefit.

He cautioned brokers not to be distracted by “white noise” and negative commentary about the sector and to be encouraged rather than disheartened in the aftermath of the banking royal commission.

“Finance brokers have been through a year where many misinformed commentators were against us, some lenders tried to exploit us for their own gain, and a royal commission didn’t get it right, yet we still command the trust and support of our clients, regulators and government,” he said.

“And the reason is simple – brokers do a bloody good job and care for their clients in a way no bank can, and consumers know this.”

Mr White said he continues to meet regularly with senior members of the Federal Government and these meetings are encouraging.

“The Government understands the important role of brokers and also knows that the worst scenario for Australia is to give more monopoly power to the big banks.

“I’m confident we will see policies that allow our industry to thrive and grow.”

Mr White says the best interest duty and any reviews won’t hurt anyone who is doing the right thing.

“My message to brokers is simple: keep acting in the customer’s best interest, be transparent, provide excellent service and ignore the inaccurate and self-serving commentary.

“Serving customers is our priority, particularly at a time when trust in the banks is still low.”

Monday 14th October 2019

Finance broking peak body welcome ACCC bank inquiry

The Finance Brokers Association of Australia (FBAA)  has welcomed the Federal Government’s announcement of an inquiry by the competition watchdog into the refusal by banks to pass on interest rate cuts in full to customers.

FBAA managing director Peter White said asking the Australian Competition and Consumer Commission (ACCC) to examine the entire banking sector was “appropriate”.

“Considering the fallout from the Royal Commission, it’s time for all banks – not just the big four – to be far more transparent and accountable”, Mr White said.

“I’ve been calling on the banks for a long time to pass on interest rate cuts in full, and of course the latest was just two weeks ago.”

Since January, the Reserve Bank has reduced the official rate three times to a new record low of 0.75 per cent.

“The banks have been playing some sort of seesaw game where they will pass on a little bit this time and then a bit more – or a bit less – the next time,” Mr White said.

“There’s a pattern of behaviour here that Australians are clearly not happy with.”

He also rejected claims by the banking sector that the interest rate cuts were not being passed on in full because of increasing costs.

“That’s not right because the banks are being hit with penalties for breaches uncovered through the Royal Commission, and through investigations by the Banking Executive Accountability Regime (BEAR).

“Trying to balance the books by passing on these penalties is not something that should be borne by borrowers.”

“You would think given the commentary and the whole focus around the banking sector, that they would be doing their utmost to regain trust with the public.”

“This inquiry provides an opportunity for banks to be transparent around their decision making and how they balance the needs of the community,”he said.

The ACCC will deliver a preliminary report by March 30 next year with the final report due six months later.

3rd September 2019

First national industry conference following royal commission looks to the future

The Finance Brokers Association of Australia (FBAA) managing director Peter White today welcomed the release of the ASIC report, Looking for a mortgage: Consumer experiences and expectations in getting a home loan.
With the roller coaster ride that was the banking royal commission now in the past, Australia’s largest annual conference for finance and mortgage brokers will be held on November 8 at one of the country’s premier theme parks, with the focus only on the future.

The Finance Brokers Association of Australia (FBAA) is expecting about 1000 brokers to attend this year’s National Industry Conference at Sea World on the Gold Coast, with the theme “challenge the future”.

FBAA managing director Peter White said while the industry successfully navigated the royal commission findings, “we will continue to be challenged due to changes in customer behaviour, technology and regulation.”

“We must rise to this challenge and pave the way for an innovative future for brokers and our customers,” he said.

The conference has grown to be the “must-attend” industry event and this year’s speakers include economist Stephen Koukoulas, futurist Steve Tighe, mental health advocate Anthony Hart, social media and small business marketing strategist Carolyn Miller and ASIC’s front-line team.

Mr White explained that while it was free for FBAA members, all within the industry including brokers who are not members are encouraged to come.

“This is for the entire industry including brokers, BDMs, lenders, small business people and senior executives.”

However he added that it was also a time for industry professionals to network and renew relationships with others across the country, and for people to enjoy a well-earned break.

“Being a one day and night event, many choose to take advantage of the beautiful Gold Coast and spend time with family.”

The conference will be followed by a gala dinner – a night second to none that must be experienced to be believed – incorporating the ‘Awards of Supremacy’ recognising broker achievements. Nominations for the awards close on September 9.

Mr White said tickets are on sale through the FBAA website.

 

29th August 2019

FBAA welcomes ASIC report but dismisses “unsubstantiated”CHOICE claims

The Finance Brokers Association of Australia (FBAA) managing director Peter White today welcomed the release of the ASIC report, Looking for a mortgage: Consumer experiences and expectations in getting a home loan.

“I’m really pleased with the outcome of this ASIC research,” Mr White said.

“Like any industry, we are always looking at how we can possibly improve.”

But Mr White “totally dismissed” claims by consumer group CHOICE in regards to the ASIC report.

“Once again, this group has highlighted their disturbing lack of real understanding into the broking sector,” he said. “They are creating issues that simply don’t exist.

“I thought CHOICE was meant to provide an independent and unbiased assessment, yet here they are again making extreme, unsubstantiated claims.

“Our industry is completely supportive of best interest duty,” he said.

Mr White said brokers always looked to give potential borrowers the very best range of options.

“I believe most borrowers are given between four and six options,” he said.

“If brokers are only given one or two options, then that needs to be looked at.

“In reality, depending on the borrower’s circumstances there may only be one or two options, so it would be wrong to make a generalised statement without knowing all the details of those specific cases.

“But if we need to, let’s up our game as an industry.”

18th July 2019

Choice exposes its lack of knowledge with broker training comments

Yet another attack on mortgage brokers from consumer group Choice should not only be dismissed outright, but reveals the groups disturbing lack of real understanding about the broking sector, according to the Finance Brokers Association of Australia (FBAA).

FBAA managing director Peter White said criticism of broker training is unfounded, revealing that training never stops.

“This myth being peddled by Choice and a few others at the recent royal commission that a short online course can qualify someone to be a finance broker, is completely false.”

He said the industry sets a high bar for finance brokers and the initial course is just the start.

“A Certificate IV is the right entry point to a continual lifetime of learnings, including mentoring for two years minimum which can be extended if necessary.

“Continuing professional development goes forever at a minimum 25 hours per year for FBAA members which is higher than the benchmark set by ASIC.”

Mr White said theory is only a part of the training and learning on the job under guidance is an important part of development.

“Choice is putting too much emphasis on ‘book study’ and their comments show they have little clue about the facts.

“People enter our industry from all walks of life and regularly come from a near zero base of industry knowledge, so it is vital that training covers all forms of consumer lending rather than just mortgages.”

“Having a proper and well-founded base line of knowledge is all important in learning anything new, and you need to know the basics first. This way what is built on top is solid and won’t collapse.”

He said this is not the first time Choice has got it wrong on broker training.

“Choice provides a valuable service for consumers in reviewing vacuum cleaners and washing machines, and they need to stick to what they know” he said.

15th July 2019

Banks urged to respond more quickly to changing borrowing conditions and rates

The Finance Brokers Association of Australia (FBAA) has demanded banks take a more proactive stance in safeguarding the interests of borrowers, citing APRA’s latest guidance on assessment rates for loans as an example.

FBAA managing director Peter White claimed many people who should qualify for a loan have been rejected because they are being assessed on advice from 2014 when the economy and interest rates were very different.

“APRA moved to correct this anomaly ten days ago but some of the banks have been slow in responding. I congratulate the ANZ for moving to a more reasonable assessment position last week and Westpac for following suit today. I urge the other majors to move as soon as possible.”

On Friday ANZ announced that its current floor rate of 7.25 per cent will be amended to 5.50 per cent. Westpac moved from 7.25 per cent to 5.75 per cent and increased its buffer to 2.5 per cent.

Mr White said other banks seem to be resisting, which is holding the economy back when it desperately needs a boost. “Brokers are trying to help buyers purchase a home, but banks have been holding them ransom.”

On July 5 APRA amended its 2014 guidance on residential mortgage lending, stating they now expect banks to assess loans at a rate of at least 2.5 per cent above the interest rate on the loan that is being taken out.

Previous guidance from APRA to authorised deposit-taking institutions (ADIs) was to assess home loan applications using a minimum interest rate of at least 7 per cent with most banks adopting a rate of 7.25 per cent to assess loan serviceability.

“With most lending institutions offering interest rates between three and four per cent an assessment rate on 7.25 per cent was unfair.

“As brokers it makes it more difficult to get approval and creates immense disappointment and confusion for clients if banks use outdated data to assess the suitability of average Australians to pay off their home.”

Mr White said the housing market needs a boost and will get it when the banking sector learns to respond quickly to changing conditions and interest rates.

“The reduction in the assessment rate will make it easier for existing borrowers to refinance so they can escape their existing mortgage prisons because of unreasonable rates and conditions.”

10th July 2019

Finance broker association goes high-tech with global first App

A new era in technology has begun with the launch of a world first web application which promises to revolutionise the way finance brokers manage industry needs including applying for membership and managing renewals, credit and bankruptcy checks, insurance and ombudsmen requirements plus education and training.

The App, which is now live and available globally, removes a substantial administrative task for both staff and member associations with a strategy to offer the technology to member-based organisations around the world over the next few months.

Finance Brokers Association of Australia (FBAA) managing director Peter White said the App provides instant membership approval for both new memberships and renewals, a capability that revolutionises the process.

“As long as all criteria has been met the App takes care of the rest allowing all membership requirements to be driven while the prospective member is keying in the data.

“It also means membership certificates are dispatched in real-time via email so that once the data is in, the membership certificate is in their inbox.”

Mr White said at the heart of the new App was artificial intelligence and optical character recognition technology which increases the capabilities and functionalities as it grows and learns from inputs.

“This impacts the industry as a whole because massive data analytics capabilities actually help drive the future of the business through greater understanding of its membership composition, member needs and specialisation learnings.”

The new technology also helps users to manage and monitor industry requirements and user needs all year round including tracking protection and indemnity insurance issues and compulsory professional development needs.

“The App triggers key dates in the system so when it comes time to renew all you do is click ‘yes’ and the system either runs automatic payments or generates payment at the time of acceptance without headaches or clumsy requirements and more forms.”

The benefits extend past members to aggregators who can use the technology for the on boarding process as it enables them to complete the broker’s association membership component on the spot, enabling the broker and aggregator to complete the needs of the lender and their own needs without the usual one to two week delay or longer in some cases.

IT workers are already developing version two of the new application which will further streamline the system and generate profitability and efficiencies to stakeholders.

2nd of July 2019

FBAA urges borrower caution after second consecutive interest rate cut

The Finance Brokers Association of Australia (FBAA) has urged borrowers to think twice about their next move after benefiting from the second consecutive month of interest rate cuts by the Reserve Bank.

FBAA managing director Peter White welcomed the rate cut but urged consumers not to spend all their windfall. “The Reserve Bank has admitted to concerns about the weakening jobs market and economic growth as well as risks to the global economy. These all point to the need for a cautionary approach.

“The banks need to pass this rate cut on in full and I would urge borrowers to pay some of their debt down by maintaining their repayments at the levels before the June rate cut.

“I understand the need for consumer spending to boost the economy but I also respect the need for Australians to increase their net wealth position and provide some safeguards in an economy which still has some downside.”

20th June 2019

FBAA advises brokers not to sign banks’ financial abuse declaration

The Finance Brokers Association of Australia (FBAA) has demanded that banks walk away from a new requirement that brokers sign a declaration stating they are unaware of borrowers suffering financial abuse, and have advised brokers not to sign any such declaration.

FBAA managing director Peter White says while the association supports moves to prevent people being coerced into a loan, this is a knee-jerk reaction from the banks that requires far more legal and industry consultation.

Noting that the proposed wording hasn’t even been widely released, he said, “To try and ram this through with little notice is not only ridiculous and ill-conceived, but creates massive risks for brokers with almost no benefit to borrowers.”

Mr White said brokers are not psychologists and the suggestion that they can somehow predict if someone is being wrongly influenced to apply for a loan is foolish.

He also believes brokers would be exposed to legal action both from banks and borrowers, and revealed that professional indemnity (PI) advisers have told him that this declaration would not be covered under existing PI terms for brokers.

“My initial information is that PI insurance could increase tenfold to cover a declaration like this. There are so many issues that have not been considered, and banks must put this aside until these have all been addressed.”

He also said that emotional abuse of any kind is a complex subject, and being able to recognise in-depth signs when discussing a mortgage puts far too much pressure on brokers.

“It’s absurd to even suggest that finance and mortgage brokers can do a two-hour or two-day course and suddenly be able to analyse people to the point where they can declare there is no financial abuse taking place.

“The banks are attempting to bring a simple solution to what is a serious and complex issue, and I have to question whether this is more about protecting themselves than the public.”

6th of June 2019

New Australian CPD classes to future-proof broking businesses

Some of Australia’s most talented and successful finance practitioners are about to engage in a series of events aimed at helping brokers broaden their business approach to provide additional income opportunities.

The 2019 Commercial Industry Masterclass will reveal the full potential of a $25 billion segment of the lending industry to brokers, many of whom have not expanded their businesses beyond home loan lending.

Pepper Money head of commercial Malcolm Withers said there are many opportunities for brokers to build their business, and the masterclass, which also offers five CPD hours, will show them how.

“The royal commission and the resulting political debate saw many brokers reconsider whether they had a future, and the upheaval would have deterred some from entering the industry.

“Brokers need to refocus on building their businesses, and commercial and equipment lending is one way they can do that.”

Mr Withers, previously the head of commercial broking for St George Bank for nine years, said this area was underserviced by brokers.

“Whether you are a long-term broker or just new in the market there are wonderful opportunities to satisfy the commercial lending needs of clients. It’s important for brokers to find the best lending solution for their commercial client, and they should be aware that there are options outside the big banks.”

The 2019 Industry Commercial Masterclass is a five-hour course, open to all industry professionals, which will reveal how brokers can succeed in the commercial and equipment finance product space.

“Our presenters include some of the best operators in commercial and equipment finance and they will provide critical advice to help brokers operate effectively in this sector.”

Glenn Mitchell, head of Vow commercial & leasing has worked at commercial lending institutions and within the aggregator broker space for over 30 years.

“If you have ever considered or would like to understand more about the key indicators for commercial lending, this a must-attend training session,” Mr Mitchell said.

 The day will provide information on financials and quality submissions as well as templates for commercial lending.

The series started on June 18 in Adelaide, followed by Perth on June 19, Brisbane June 25, Melbourne June 26 and Sydney June 27.

For bookings visit:  https://www.fbaa.com.au/events/ 

5th of June 2019

Finance brokers association warns borrowers on interest rate cuts

The Finance Brokers Association of Australia (FBAA) has urged borrowers to keep their repayments at current levels despite the Reserve Bank of Australia’s move to cut rates by 25 basis points.

FBAA managing director Peter White has welcomed the first cut in nearly three years and called on the big banks to do the right thing and immediately pass it on rather than boosting their profit margins.

“If the banks refuse to pass this on in full they will reveal they have learnt nothing from the royal commission process,” Mr White said.

However, with economic challenges on the radar Mr White is urging beneficiaries of the rate cut to keep their repayments at current levels to drive down debt.

“Borrowers will effectively be saving for a rainy day if they keep their mortgage repayments as high as they can afford. It’s better to have payments in reserve if conditions deteriorate further.”

Mr White agreed with some economists that there had been some recent positive sentiment, certainly in the housing market but he acknowledged the Reserve Bank has limited capacity to stimulate the economy further with the official rate at 1.25 percent.

“I understand why the Reserve Bank governor Philip Lowe has called for governments to play their part in stimulating the economy but I also see some positives.

“It’s not the time to panic but it is definitely time for prudence,” Mr White said.

28th of May 2019

FBAA welcomes new minister for financial services

 The Finance Brokers Association of Australia (FBAA) has welcomed the appointment of Senator Jane Hume as financial services minister while thanking outgoing minister Stuart Robert for his courtesy, professionalism and commitment to the industry.

FBAA managing director Peter White said he was looking forward to working with the new minister.

“I congratulate the senator for her appointment to the ministry. I am pleased to note that the senator has qualifications in the financial services sector and commerce and has experience in management roles and in directorship positions.

“I will be looking for an early opportunity to meet with Senator Hume to ensure the momentum gained through meetings with Stuart Robert and treasurer John Frydenberg continues.

“We have much work to do to ensure the broking industry continues to provide the competition in the sector that all Australians demand.”

Mr White also congratulated the treasurer for retaining his role. “The FBAA has worked with Mr Frydenberg for many years, initially as financial services minister, then treasurer and we will remain in contact with the offices of both Senator Hume and the treasurer to provide regular feedback from our industry.”

 

23rd of May 2019

FBAA welcomes APRA rethink

The Finance Brokers Association of Australia (FBAA) has welcomed moves by the Australian Prudential Regulation Authority (APRA) to loosen its deemed serviceability requirements that have resulted in banks rejecting many reasonable loan applications.

FBAA managing director Peter White said times have changed significantly since APRA introduced guidance to authorised deposit-taking institutions (ADIs) to test residential home borrowers against an interest rate of 7.25 per cent, or well above a 2 per cent buffer over the loan’s actual interest rate.

APRA provided its guidance towards the end of 2014 when house prices were increasing and there was strong growth in investor loans.

“The end result was most banks were assessing applications against a rate of 7.25 per cent – way above the interest rate for owner-occupiers and investors.”

On Tuesday the prudential regulator gave the industry four weeks to respond to its proposal to remove the 7.25 per cent requirement, allow ADIs to determine their own floor rate levels while increasing the rate buffer from 2 to 2.5 per cent “to maintain prudence in overall serviceability assessments.”

“Brokers have a duty of care to always assess an individual’s capacity to afford the loan they want as part of our commitment to put customers first. But if the guidance is introduced it simply allows us to help more borrowers into properties that they can afford at a time of low interest rates and subdued house prices.

“When you combine the touted change in APRA guidance with the end of the election cycle and the possibility of the Reserve Bank cutting interest rates in June, there are some positive signs for our housing sector in the months ahead,” Mr White said.

“Just eight weeks ago I supported ASIC and APRA in their criticism of the big banks for blaming tough new interpretations of responsible lending regulations and the royal commission for the credit squeeze and delays in assessing loan applications.

“I will be watching the banks with interest to see who they blame next for their shortfalls after the new APRA guidance is issued.”

20th of May 2019

The FBAA looks to the future after Coalition re-elected

The Finance Brokers Association of Australia (FBAA) has congratulated Scott Morrison and the Coalition for their election win and vowed to work with them to ensure borrowers continue to have choice in a healthy financial services industry.

FBAA managing director Peter White said now is the time for brokers to take the handbrake off and hit the accelerator.

“The royal commission findings and the political fallout saw many brokers retreat into a holding pattern, driven by fear about their very financial survival and what that would mean for borrowers.

“Now that the election is over, I want to urge all brokers to commit to doing everything we can to grow our businesses now that banks know we are a force to be reckoned with.

“We currently provide around 60 per cent of home loans and I think brokers have a great opportunity to increase that to 70 per cent in the short to medium term.”

Mr White said the FBAA had worked closely with both the Government and Opposition in the lead-up to the election and had positive and professional support from both.

“On Sunday I communicated with both Labor and the Coalition, conveying thanks and best wishes from all brokers.

“We will continue to be highly engaged with politicians from across the country because our industry is a crucial one as we move into a new era.

“Brokers welcome the first home loan deposit scheme and other policies aimed at giving the property sector a boost. We will certainly do our part to boost competition and be ready to assist when the policy comes into play in January next year.”

13th of May 2019

FBAA cautiously welcomes first home buyer loan guarantee

The Finance Brokers Association of Australia says the Government’s proposed loan guarantee for home buyers, which will allow them to enter the market with only a five per cent deposit, is a very good initiative.

However managing director Peter White said the scheme’s success will be dependant on the banks which have over tightened credit policies following the royal commission.

“This will be great for first home buyers, although it’s worth noting that only about one tenth of the market will gain access to it,” he said.

While saving borrowers thousands of dollars in lenders mortgage insurance is a good outcome, Mr White cautioned that greater detail is needed to truly assess the benefits.

“There is a very good fundamental reason to have a deposit. If you can save for a deposit you can meet your monthly repayments, and this is what the banks look at.”

He also pointed out that with a falling property market, negative equity is a risk.

“We need to know the lenders’ credit policies around this, and they will have to step up to the mark and support it.”However he said overall, “if it can help stimulate people into buying their own home then that’s great.”

7th of May 2019

FBAA notes interest rate inaction despite solid case for cut

The Finance Brokers Association of Australia (FBAA) says many would-be home buyers will be disappointed by the decision of the Reserve Bank of Australia (RBA) to keep interest rates on hold.

FBAA managing director Peter White said the RBA board referenced employment figures strongly in their statement on monetary policy but also noted the impact of the changing dynamic on the housing market.

“The RBA has admitted that the demand for credit by investors has slowed noticeably as has growth in credit for owner-occupiers.

“Housing does play a major role in the health of the economy and while I understand inflationary pressure is subdued in part because of lower housing costs, we need a healthy and resilient housing market and we need accessible and affordable credit to achieve that.”

Mr White agreed with the RBA that borrowers of high credit quality can benefit from the current low mortgage rates, however that might not help first-home buyers or would be investors with limited credit history.

“As an industry, brokers are a saviour for many borrowers and I think the key role of brokers has been acknowledged by both sides of politics in the current election climate.

“I would have liked to have seen a rate cut but I firmly believe a reduction is still on the agenda in the coming months. What is also needed is certainty for brokers to ensure that we can continue to provide competition to the big four banks.

“We would like a commitment from both sides of politics to ensure the survival of the mortgage broking industry so that all Australians can continue to benefit from the services of a finance broker. We need the right policies to achieve that, not more uncertainty and deferred decisions.”

Australian Broker TV

Letter from Scott Morrison

In a letter addressed to Mortgage Brokers, Prime Minister Scott Morrison says,

“Mortgage brokers are critically important for competition and delivering better consumer outcomes in the mortgage market.”

17th of April 2019

FBAA leader elected as chair of global broker movement

The International Mortgage Brokers Federation (IMBF) has elected Peter White, the managing director of the Finance Brokers Association of Australia (FBAA), as its inaugural chair of their board of governors.

Mr White continues in his role as the association’s managing director and has been part of the FBAA for 16 years holding positions including national vice president, national president, chairman of the board of directors and chief executive officer.

“I am honoured to be elected to this position with the IMBF which uniquely leads the broking industry in global co-operation and collaboration. At no time in our industry’s history has this been done.”

Mr White played a significant part in the birth of the federation which was launched in Canada late last year. A foundation meeting last month established the board of governors and elected office holders.

“The purpose of the IMBF is to lead industry associations around the world in collaboration so they can openly discuss their own journeys with regulation and how they may impact regulation in our own countries.

“The IMBF has already proven its worth in the FBAA response to the banking royal commission. The commission was told by a major bank that the Netherlands broker model should be implemented here.

“Our colleagues in the Netherlands quickly explained the failures of that model and our resulting submission saw both sides of politics, and the commission itself, reject the idea.”

“As well as broking topics the IMBF also discusses matters such as property markets, economies, regulations, global codes of conduct, rules of ethics, data research and best practice so that our members are informed like never before,” Mr White said.

The IMBF also established an international referral network allowing brokers to refer clients moving overseas (or those coming to Australia from overseas) to be looked after by leading professional brokers in the country they are moving to, in consultation with the client’s current local broker.

The board of governors include chief executive officers, managing directors and national presidents representing finance and mortgage broker industry associations from Australia, Canada, the UK and the USA. New Zealand, the Netherlands, and other countries from Europe and Asia are expected to join soon.

16th of April 2019

FBAA welcomes interest rate cuts by big banks and calls on others to follow

The peak body representing Australia’s finance brokers has applauded the Commonwealth Bank of Australia (CBA) and Westpac for giving in to market pressures and reducing fixed interest rates for new borrowers.

Managing director of the Finance Brokers Association of Australia (FBAA) Peter White said the downward moves are not surprising given increasing competition from lenders who were more competitive across the loan products.

“Late last month I called on banks to immediately cut interest rates as evidence increased that the next move by the Reserve Bank would be down. In March there was a sharp decline in short term bank funding rates and the smaller banks were already revising down.”

The moves by CBA and Westpac puts them ahead of the other majors for owner-occupiers and investors and improves their rating against some smaller lenders. Recent figures suggest 40 lenders have dropped rates since the start of 2019.

“The decisions are interesting because they put pressure on the other major banks to at least match them or risk losing more market share. That’s exactly why Westpac moved yesterday after the CBA.”

Mr White said there are many mixed signals in the finance sector at the moment but there is growing speculation that there may be at least one, or possibly two, interest rate reductions by the Reserve Bank this year.

“Consumers will be keeping a close eye on the big banks when the official rates do go down. I expect the banks won’t pass-on the rate cuts in full and that will lead to more confusion for borrowers trying to get the best deal.”

Close to 60 per cent of borrowers currently source their home-loans through brokers rather than going direct to lenders.

“There are very good reasons for that. The royal commission blasted the banks for their culture of greed and lack of transparency. Brokers have a large number of loan providers to choose from and they find the right deal to suit the individual circumstances of each consumer.”

3rd of April 2019

FBAA tips budget boost to result in bank crackdown

The Finance Brokers Association of Australia (FBAA) has welcomed the budget funding commitment enabling ASIC and APRA to respond appropriately to the recommendations of the royal commission.

FBAA managing director Peter White said it’s clear that a significant portion of the $404 million promised for ASIC over four years is for enforcement post the royal commission recommendations.

“Indications are little or none of this additional enforcement funding will be spent on actions against brokers, rather additional action to reign in the banks.”

Mr White cites an ASIC announcement late last year as evidence banks will be the focus. “The FBAA in December revealed that ASIC had reduced the cost to act as a credit representative for brokers from $104 to just $16.48 annually due to the decreased cost of enforcement. It is now indicatively being lowered again by ASIC going forward to $14.33.

“The total cost of legal enforcements against mortgage brokers has reduced to a third of the original cost in a little over 12 months, and now further again and that’s because brokers are doing the right thing by clients.”

However Mr White has strong reservations about the new task force to review brokers remuneration in three years.

“We will work with the new task force but only as it acts as a system of checks and balances and to ensure the model remains commercially sound and in the best interest of borrowers. After years of uncertainty we will not support a review which again puts in doubt the continuity of broker commissions and the ability of a broker to earn a reasonable income.”

He said the FBAA welcomes the move to provide the Australian Financial Complaints Authority with additional funding to assist those with historical eligible financial complaints. The number of financial complaints against brokers is minimal – approximately 0.5 per cent of the total – while complaints against banks have skyrocketed.

Overall, Mr White said he would have liked to see the budget provide more assistance for struggling homebuyers, particularly given the declining home values in some areas combined with persistent global uncertainty.

“The government, and all major political parties, must examine what they can do to stimulate the housing market, not suppress it and that includes any change to negative gearing and capital gains tax,” Mr White said.

1st of April 2019

Big banks urged to cut rates now

The peak body representing Australia’s finance brokers has urged the major banks to stop talking up the credit squeeze and start helping borrowers by cutting interest rates, thereby following the lead of smaller banks.

Managing director of the Finance Brokers Association of Australia Peter White said ASIC chairman James Shipton was right to criticise banks at an industry summit on Wednesday.

“Mr Shipton has called out banks for blaming a credit squeeze on tough new interpretations of responsible lending regulations when the laws have been in place for more than a decade.”

The ASIC chair reportedly told banks to ‘lean in’ to their obligations saying he was unimpressed with industry reluctance to comply with long-standing laws.

“The big four banks cited increased costs when hiking rates months ago and just this week some bank leaders have tried to blame the royal commission for the credit squeeze and delays in assessing loan applications, claims APRA Chair Graeme Samuel called ‘a load of utter nonsense.’

Mr White said banks are still blaming everyone else for their shortfalls, despite ASIC forecasting increased court action against them partly because of alleged breaches of the Corporations Act, which demand services are provided “efficiently, honestly and fairly”.

He also pointed to a sharp decline in short term bank funding rates as the latest evidence supporting rate cuts.

“Smaller banks are already cutting rates and some economists are predicting two official rate cuts this year with the Reserve Bank moving to a neutral bias amid concerns about the slowing global economy and the declining housing market.

“The first official rate cuts of 2019 may be here soon, but going by history, I suspect the banks will protect their massive profit margins by refusing to pass on any cuts in full.”

Further evidence of the dominance of the big four banks came recently when many of the smaller banks, including Bank of Queensland, Bendigo Bank and Adelaide Bank warned of weaker earnings and challenging conditions.

“In the ongoing debate about the reforms impacting mortgage brokers there has never been a more crucial time for competition in the marketplace.”

Stronger together

From the Australian Broker Magazine – 20th November FBAA managing director Peter White on the launch of the International Mortgage Brokers Federation Financial regulators often collaborate across borders to share knowledge and….. read full article...

FBAA announces new state presidents and councillors

The Finance Brokers Association of Australia (FBAA) has announced its new state presidents and councillors for 2019, with a strong and dynamic team set to serve the industry. Felicity Heffernan is the newly elected president for New South Wales and the Australian Capital Territory, bringing 30 years of finance experience to the role. Ms Heffernan said she is eager to give back to an industry that has been good to her for many years, and have a voice that helps shape the broking industry now and into the future. The president for Victoria and Tasmania is Brendon Kurtz, who in 2011 bought into Outsource Financial, the largest privately owned and independent aggregator in Australia. He said his main objective for 2019 is to continue bringing high quality professional development to both metropolitan and regional areas of Victoria and Tasmania. Christine Green has been reappointed president for Queensland and Northern Territory for the fourth year, bringing over 20 years experience in banking and finance. South Australian president Joff O’Shannessy is back for the fifth year. He has been a finance broker for more than 23 years, running his own business for 18 years. Trent Carter has been reappointed Western Australian president, and is aiming to have wider reach across the local industry by having council representatives from residential, commercial, asset, regional, licence holders and ‘new to industry’ members. Mr Carter said he is excited to develop more frequent, smaller events targeted to industry niches, delivering locally relevant content. Peter White, managing director of the FBAA congratulated all elected state presidents and state councillors for 2019, and is looking forward to...

FBAA responds to interim royal commission findings

The Finance Brokers Association of Australia (FBAA) has lodged its response to the interim report of the royal commission into the banking, superannuation and financial services industry. The commission tabled its interim report on September 28, 2018 providing interested parties with a month to make submissions in response. FBAA managing director Peter White said their substantive submission focuses on disclosure obligations, remuneration structures, compliance with existing laws, and the commission’s call for greater regulation. “The association agrees with the commission’s interim report that improvements can be made but we also agree that new laws or regulations aren’t necessarily the answer. “Some of the responses to the royal commission have verged on emotional or value proposition statements, and while most have merit we have deliberately taken a strong legal approach to our language to ensure our messages are clearly understood by the commissioner, a High-Court Judge.” One area addressed in the submission is the issue of full disclosure of remuneration paid to brokers by financiers. The FBAA submission rejected any suggestion of a need for further disclosure measures. “Already brokers have to provide lengthy disclosure documents, while the National Consumer Credit Protection Act 2010 (NCCPA) ensures clients are well-informed about the costs and commissions. “We don’t want brokers to be forced into even more documentary disclosure and that view accords with ASIC’s findings that consumers can disengage because of information overload.” The association takes on the issue of broker remuneration concluding that the current structure is superior to other models and any change may be detrimental. “We are concerned that a change to the existing structure without fully understanding the impact...

Brokers urged to check professional indemnity insurance cover

The Finance Brokers Association of Australia (FBAA) has warned brokers to review their professional indemnity (PI) insurance in response to an increase in award limits to be introduced by the Australian Financial Complaints Authority (AFCA). In May the minister for revenue and financial services authorised Australian Financial Complaints Limited to establish and operate the AFCA. The AFCA board has been working with the Credit and Investments Ombudsman board in the transition to the new body while also collaborating with the Superannuation and Complaints Tribunal and the Financial Services Ombudsman. The new arrangements are in place from November 1, 2018. FBAA executive director Peter White said AFCA has forecast an increase in the award limits from the current maximum of $323,500 for any one claim, to $500K. “This change means that unless brokers review and potentially increase their PI insurance levels they may not be adequately protected should a claim of this type be made after November 1,” Mr White said. However, he said brokers who have policies with FBAA’s preferred PI Insurance provider, Insurance Advisernet Australia, will be protected. “We have received written confirmation that the ‘Finance Brokers PI Plus Policy’ with Insurance Advisernet will be altered to cover EDR awards up to $500K for any one claim or up to $1M in the annual aggregate for all new policies and/or renewals issued as from November 1, 2018.” “It means any existing member’s policies that fall due for renewal after this date will benefit from an automatic increase to the above limits for no additional premium charge.” Mr White encouraged brokers with questions to contact Insurance Advisernet national product manager,...

FBAA disputes mortgage broker payments breach the NCCP

The Finance Brokers Association of Australia (FBAA) has rejected claims in the royal commission interim report that lenders paying value-based upfront and trail commissions could be in breach of section 47(1)(b) of the National Consumer Credit Protection Act (NCCP). FBAA executive director Peter White said the interim report did not find any systemic evidence to suggest that conflict of interest in the payment of commissions to brokers directly disadvantages clients. Mr White also took exception to any suggestion that loans sourced for clients with higher leverage are in themselves a bad thing. “It’s the brokers duty to put the client’s interest first and to meet, if not exceed, their expectations. “In meeting client needs brokers are often asked to source higher leverage loans to appropriately support their needs, taking into account a client’s debt levels and loan to valuation ratios. “It’s a broker’s ability to source a specific loan product to suit their client’s specific needs that gives us a market advantage.” In his interim report commissioner Hayne said licensees must make adequate arrangements to ensure clients are not disadvantaged by any conflict of interest that may arise in relation to credit activities. Mr White said adequate arrangements are already in place and so are penalties. “The commissioner pointed out that a breach of the NCCP is not an offence or open to civil penalty. I would argue that the cancellation or suspension of a broker’s licence by ASIC is a substantial penalty in itself.” Mr White said brokers were at the forefront of efforts to improve service delivery and remuneration structures and have been working collaboratively with...

OnDeck Expands Further into Australian Equipment Finance Market

Funding structure enhances small business growth capabilities OnDeck Capital Australia (OnDeck), a subsidiary of the US-listed OnDeck Capital, today announced it will expand availability of its equipment finance solution, representing another example of how fintech lenders are successfully identifying and filling the small business funding gap. Mr Cameron Poolman, Chief Executive Officer of OnDeck Australia, said brokers often speak to OnDeck about the challenges they encounter obtaining traditional finance solutions for non-primary assets. “These include assets such as catering equipment, gym equipment, racking, IT, food processing and fit-outs, which mainstream financiers will not finance because of the asset type or its age, says Poolman. “Currently, to purchase these types of assets, many small business owners must resort to using their valuable working capital or turn to family and friends. Often the purchase simply doesn’t happen and that limits the development or even the ongoing operations of the business”. Mr Poolman said that what distinguishes OnDeck funding solutions from traditional lenders is its focus on the future potential of the business. “We want small business in Australia to succeed. To do this, we must support and invest in solutions for them. Our focus is on a small business owner’s overall financial health, and not just purely on the short-term resale value of its business assets. As such, our equipment finance solution places no maximum age restrictions against any asset class. It provides small business the finance to purchase necessary equipment, frees up cash and gives owners more opportunity to focus on what’s best for their business.” OnDeck’s research has shown that one of the main reasons small business borrow from...

Research reveals high satisfaction with mortgage brokers

New independent research has revealed most people who have sourced mortgages through brokers are satisfied with almost every aspect of the transaction. The Finance Brokers Association of Australia (FBAA) commissioned the research project through finance industry researchers MyNextAdvice to gauge the level of satisfaction with clients who had settled on mortgages obtained through FBAA members. The research took into account responses from 2049 clients who had settled loans, on a range of key performance indicators including broker-client relationship and ease of doing business. FBAA executive director Peter White said the results indicate brokers are doing the right thing by their clients. “Overall confidence with the brokers relevant to this research was 95 per cent, and the same percentage said brokers were easy to do business with.” In other findings: 94 per cent were happy with their broker’s knowledge and competency. 93 per cent agreed their broker had their clients interest at heart. 93.6 per cent found their broker understood the borrowers needs, objectives and financial situation, and 92.1 per cent were satisfied with the strength of the broker-client relationship. The depth in the sentiment came from the many comments that clients volunteered on their survey forms. A high proportion said they had received excellent or fantastic service. One respondent seemed typical in his remarks. “Highly recommended, excellent service, quick response, excellent savings and results. Highly recommended to friends and family who have said the same thing. A+” Mr White said FBAA members were clearly looking after the individual needs of their clients. “While these results are good they are not perfect.   “There is always room to improve but when we...

FBAA calls for uniform accreditation for reverse mortgage writers

The Finance Brokers Association of Australia (FBAA) has called for the introduction of mandatory training and accreditation for anyone offering reverse mortgages to ensure borrowers receive the right advice and understand the long-term implications and opportunities. FBAA executive director Peter White said the release of findings by the Australian Securities and Investments Commission (ASIC) highlights the need for higher standards in the often-misunderstood lending sector. “ASIC found that while reverse mortgages can help people stay in their homes longer and therefore meet their short-term financial goals, often the long-term risks associated with reverse mortgages aren’t adequately explained.” Mr White said the FBAA had been working closely with ASIC on reverse mortgages for some time and had formed a specialised working group under the chairmanship of Stephen Rasmussen following on from the foundational work of the Senior Australians Equity Release Association of Lenders, which folded in 2017. “We are seeking to develop a co-ordinated industry understanding and strategy towards higher levels of training and accreditation, and to improve consumer access to accurate, timely and appropriate advice on their financing options,” Mr Rasmussen said. “Our working group is focussed on a whole of industry approach to strengthen consumer safeguards, but it’s important to note significant protections have been in place since 2011 including high level disclosure requirements and the ‘no negative equity guarantee’. “While in the main lenders have maintained high standards, this is a highly specialised area ideally served by practitioners who have developed the knowledge and experience in the sector. The tick-box response from some lenders is not appropriate as all applicants for reverse mortgages deserve good, independent advice taking into...

ALI Group launches a national radio campaign which will “hero” Mortgage Brokers

 ALI Group launches a national radio campaign which will “hero” Mortgage Brokers ALI Group have announced they are investing in a national radio campaign which will target 25 to 45-year old first home buyers, owner occupiers and families. The campaign, which launched Wednesday 5 September 2018 will run through to the end of November. The awareness campaign will promote the Mortgage Broker channel and ‘hero the mortgage broker’ in a manner not readily known to home and property buyers. With the core message being how mortgage brokers prepare their clients for the unexpected. A series of ALI Loan Protection “moments” will highlight the positive impact and customer outcome that brokers can generate. ALI CEO, Huy Truong says the campaign is about increasing awareness of loan service risks over a 30-year period and that a broker can help with these risks as part of the loan process. “ALI’s research with Core Data surveying over 1,200 consumers, highlighted that 96% of homebuyers expected their mortgage broker to educate them on risks to loan service and to put in place a solution if the client has no plan B”. “This campaign is all about making homebuyers aware that their mortgage broker can meet this expectation. The fact that ALI has paid out over $80m for serious and terminal illnesses, death and involuntary unemployment reinforce that these risks are real, and the brokers involved were pivotal to their clients having financial protection in place”, says Huy Truong. The radio content and messaging will highlight the importance of thinking about the unthinkable, sharing scenarios based on actual mortgage holders who have been impacted by...

Productivity Commission report released

Today the Productivity Commission released their final report into competition in the Australian Financial System, and yes, we are not happy with it at all. Firstly, it is important to note the Productivity Commission (as the Royal Commission) can only make recommendations to government, the decision is with the Federal Minister whom I have been in contact with her office this morning and of course will continue close dialog on this matter with government and the Opposition. For now and as we read the ‘headlines’ of this report, there are many things that simply show the Productivity Commission has chosen not to accept facts and would rather make comments that simply are not correct. We will ensure these matters are corrected and clearly and firmly positioned with the Federal Minister as well as several other key Senior Ministers in the government and the Opposition in our response paper to this report, which we are working on as we speak. Thank you to all those who have called me and emailed me with your concerns and I am working through responding to all of you over the weekend. But I ask that we all take time to digest all this before we comment on specifics or start making any public statements. This time will shortly come however. I will come back to you shortly with our formal media release on this, plus I will keep you up to date as we go through the steps in responding formally to government on this...
10th July 2019

Finance broker association goes high-tech with global first App

A new era in technology has begun with the launch of a world first web application which promises to revolutionise the way finance brokers manage industry needs including applying for membership and managing renewals, credit and bankruptcy checks, insurance and ombudsmen requirements plus education and training.

The App, which is now live and available globally, removes a substantial administrative task for both staff and member associations with a strategy to offer the technology to member-based organisations around the world over the next few months.

Finance Brokers Association of Australia (FBAA) managing director Peter White said the App provides instant membership approval for both new memberships and renewals, a capability that revolutionises the process.

“As long as all criteria has been met the App takes care of the rest allowing all membership requirements to be driven while the prospective member is keying in the data.

“It also means membership certificates are dispatched in real-time via email so that once the data is in, the membership certificate is in their inbox.”

Mr White said at the heart of the new App was artificial intelligence and optical character recognition technology which increases the capabilities and functionalities as it grows and learns from inputs.

“This impacts the industry as a whole because massive data analytics capabilities actually help drive the future of the business through greater understanding of its membership composition, member needs and specialisation learnings.”

The new technology also helps users to manage and monitor industry requirements and user needs all year round including tracking protection and indemnity insurance issues and compulsory professional development needs.

“The App triggers key dates in the system so when it comes time to renew all you do is click ‘yes’ and the system either runs automatic payments or generates payment at the time of acceptance without headaches or clumsy requirements and more forms.”

The benefits extend past members to aggregators who can use the technology for the on boarding process as it enables them to complete the broker’s association membership component on the spot, enabling the broker and aggregator to complete the needs of the lender and their own needs without the usual one to two week delay or longer in some cases.

IT workers are already developing version two of the new application which will further streamline the system and generate profitability and efficiencies to stakeholders.

10th July 2019

Finance broker association goes high-tech with global first App

A new era in technology has begun with the launch of a world first web application which promises to revolutionise the way finance brokers manage industry needs including applying for membership and managing renewals, credit and bankruptcy checks, insurance and ombudsmen requirements plus education and training.

The App, which is now live and available globally, removes a substantial administrative task for both staff and member associations with a strategy to offer the technology to member-based organisations around the world over the next few months.

Finance Brokers Association of Australia (FBAA) managing director Peter White said the App provides instant membership approval for both new memberships and renewals, a capability that revolutionises the process.

“As long as all criteria has been met the App takes care of the rest allowing all membership requirements to be driven while the prospective member is keying in the data.

“It also means membership certificates are dispatched in real-time via email so that once the data is in, the membership certificate is in their inbox.”

Mr White said at the heart of the new App was artificial intelligence and optical character recognition technology which increases the capabilities and functionalities as it grows and learns from inputs.

“This impacts the industry as a whole because massive data analytics capabilities actually help drive the future of the business through greater understanding of its membership composition, member needs and specialisation learnings.”

The new technology also helps users to manage and monitor industry requirements and user needs all year round including tracking protection and indemnity insurance issues and compulsory professional development needs.

“The App triggers key dates in the system so when it comes time to renew all you do is click ‘yes’ and the system either runs automatic payments or generates payment at the time of acceptance without headaches or clumsy requirements and more forms.”

The benefits extend past members to aggregators who can use the technology for the on boarding process as it enables them to complete the broker’s association membership component on the spot, enabling the broker and aggregator to complete the needs of the lender and their own needs without the usual one to two week delay or longer in some cases.

IT workers are already developing version two of the new application which will further streamline the system and generate profitability and efficiencies to stakeholders.

10th July 2019

Finance broker association goes high-tech with global first App

A new era in technology has begun with the launch of a world first web application which promises to revolutionise the way finance brokers manage industry needs including applying for membership and managing renewals, credit and bankruptcy checks, insurance and ombudsmen requirements plus education and training.

The App, which is now live and available globally, removes a substantial administrative task for both staff and member associations with a strategy to offer the technology to member-based organisations around the world over the next few months.

Finance Brokers Association of Australia (FBAA) managing director Peter White said the App provides instant membership approval for both new memberships and renewals, a capability that revolutionises the process.

“As long as all criteria has been met the App takes care of the rest allowing all membership requirements to be driven while the prospective member is keying in the data.

“It also means membership certificates are dispatched in real-time via email so that once the data is in, the membership certificate is in their inbox.”

Mr White said at the heart of the new App was artificial intelligence and optical character recognition technology which increases the capabilities and functionalities as it grows and learns from inputs.

“This impacts the industry as a whole because massive data analytics capabilities actually help drive the future of the business through greater understanding of its membership composition, member needs and specialisation learnings.”

The new technology also helps users to manage and monitor industry requirements and user needs all year round including tracking protection and indemnity insurance issues and compulsory professional development needs.

“The App triggers key dates in the system so when it comes time to renew all you do is click ‘yes’ and the system either runs automatic payments or generates payment at the time of acceptance without headaches or clumsy requirements and more forms.”

The benefits extend past members to aggregators who can use the technology for the on boarding process as it enables them to complete the broker’s association membership component on the spot, enabling the broker and aggregator to complete the needs of the lender and their own needs without the usual one to two week delay or longer in some cases.

IT workers are already developing version two of the new application which will further streamline the system and generate profitability and efficiencies to stakeholders.

18th July 2019

Choice exposes its lack of knowledge with broker training comments

Yet another attack on mortgage brokers from consumer group Choice should not only be dismissed outright, but reveals the groups disturbing lack of real understanding about the broking sector, according to the Finance Brokers Association of Australia (FBAA).

FBAA managing director Peter White said criticism of broker training is unfounded, revealing that training never stops.

“This myth being peddled by Choice and a few others at the recent royal commission that a short online course can qualify someone to be a finance broker, is completely false.”

He said the industry sets a high bar for finance brokers and the initial course is just the start.

“A Certificate IV is the right entry point to a continual lifetime of learnings, including mentoring for two years minimum which can be extended if necessary.

“Continuing professional development goes forever at a minimum 25 hours per year for FBAA members which is higher than the benchmark set by ASIC.”

Mr White said theory is only a part of the training and learning on the job under guidance is an important part of development.

“Choice is putting too much emphasis on ‘book study’ and their comments show they have little clue about the facts.

“People enter our industry from all walks of life and regularly come from a near zero base of industry knowledge, so it is vital that training covers all forms of consumer lending rather than just mortgages.”

“Having a proper and well-founded base line of knowledge is all important in learning anything new, and you need to know the basics first. This way what is built on top is solid and won’t collapse.”

He said this is not the first time Choice has got it wrong on broker training.

“Choice provides a valuable service for consumers in reviewing vacuum cleaners and washing machines, and they need to stick to what they know” he said.

18th July 2019

Choice exposes its lack of knowledge with broker training comments

Yet another attack on mortgage brokers from consumer group Choice should not only be dismissed outright, but reveals the groups disturbing lack of real understanding about the broking sector, according to the Finance Brokers Association of Australia (FBAA).

FBAA managing director Peter White said criticism of broker training is unfounded, revealing that training never stops.

“This myth being peddled by Choice and a few others at the recent royal commission that a short online course can qualify someone to be a finance broker, is completely false.”

He said the industry sets a high bar for finance brokers and the initial course is just the start.

“A Certificate IV is the right entry point to a continual lifetime of learnings, including mentoring for two years minimum which can be extended if necessary.

“Continuing professional development goes forever at a minimum 25 hours per year for FBAA members which is higher than the benchmark set by ASIC.”

Mr White said theory is only a part of the training and learning on the job under guidance is an important part of development.

“Choice is putting too much emphasis on ‘book study’ and their comments show they have little clue about the facts.

“People enter our industry from all walks of life and regularly come from a near zero base of industry knowledge, so it is vital that training covers all forms of consumer lending rather than just mortgages.”

“Having a proper and well-founded base line of knowledge is all important in learning anything new, and you need to know the basics first. This way what is built on top is solid and won’t collapse.”

He said this is not the first time Choice has got it wrong on broker training.

“Choice provides a valuable service for consumers in reviewing vacuum cleaners and washing machines, and they need to stick to what they know” he said.

18th July 2019

Choice exposes its lack of knowledge with broker training comments

Yet another attack on mortgage brokers from consumer group Choice should not only be dismissed outright, but reveals the groups disturbing lack of real understanding about the broking sector, according to the Finance Brokers Association of Australia (FBAA).

FBAA managing director Peter White said criticism of broker training is unfounded, revealing that training never stops.

“This myth being peddled by Choice and a few others at the recent royal commission that a short online course can qualify someone to be a finance broker, is completely false.”

He said the industry sets a high bar for finance brokers and the initial course is just the start.

“A Certificate IV is the right entry point to a continual lifetime of learnings, including mentoring for two years minimum which can be extended if necessary.

“Continuing professional development goes forever at a minimum 25 hours per year for FBAA members which is higher than the benchmark set by ASIC.”

Mr White said theory is only a part of the training and learning on the job under guidance is an important part of development.

“Choice is putting too much emphasis on ‘book study’ and their comments show they have little clue about the facts.

“People enter our industry from all walks of life and regularly come from a near zero base of industry knowledge, so it is vital that training covers all forms of consumer lending rather than just mortgages.”

“Having a proper and well-founded base line of knowledge is all important in learning anything new, and you need to know the basics first. This way what is built on top is solid and won’t collapse.”

He said this is not the first time Choice has got it wrong on broker training.

“Choice provides a valuable service for consumers in reviewing vacuum cleaners and washing machines, and they need to stick to what they know” he said.

3rd September 2019

First national industry conference following royal commission looks to the future

The Finance Brokers Association of Australia (FBAA) managing director Peter White today welcomed the release of the ASIC report, Looking for a mortgage: Consumer experiences and expectations in getting a home loan.
With the roller coaster ride that was the banking royal commission now in the past, Australia’s largest annual conference for finance and mortgage brokers will be held on November 8 at one of the country’s premier theme parks, with the focus only on the future.

The Finance Brokers Association of Australia (FBAA) is expecting about 1000 brokers to attend this year’s National Industry Conference at Sea World on the Gold Coast, with the theme “challenge the future”.

FBAA managing director Peter White said while the industry successfully navigated the royal commission findings, “we will continue to be challenged due to changes in customer behaviour, technology and regulation.”

“We must rise to this challenge and pave the way for an innovative future for brokers and our customers,” he said.

The conference has grown to be the “must-attend” industry event and this year’s speakers include economist Stephen Koukoulas, futurist Steve Tighe, mental health advocate Anthony Hart, social media and small business marketing strategist Carolyn Miller and ASIC’s front-line team.

Mr White explained that while it was free for FBAA members, all within the industry including brokers who are not members are encouraged to come.

“This is for the entire industry including brokers, BDMs, lenders, small business people and senior executives.”

However he added that it was also a time for industry professionals to network and renew relationships with others across the country, and for people to enjoy a well-earned break.

“Being a one day and night event, many choose to take advantage of the beautiful Gold Coast and spend time with family.”

The conference will be followed by a gala dinner – a night second to none that must be experienced to be believed – incorporating the ‘Awards of Supremacy’ recognising broker achievements. Nominations for the awards close on September 9.

Mr White said tickets are on sale through the FBAA website.

 

3rd September 2019

First national industry conference following royal commission looks to the future

The Finance Brokers Association of Australia (FBAA) managing director Peter White today welcomed the release of the ASIC report, Looking for a mortgage: Consumer experiences and expectations in getting a home loan.
With the roller coaster ride that was the banking royal commission now in the past, Australia’s largest annual conference for finance and mortgage brokers will be held on November 8 at one of the country’s premier theme parks, with the focus only on the future.

The Finance Brokers Association of Australia (FBAA) is expecting about 1000 brokers to attend this year’s National Industry Conference at Sea World on the Gold Coast, with the theme “challenge the future”.

FBAA managing director Peter White said while the industry successfully navigated the royal commission findings, “we will continue to be challenged due to changes in customer behaviour, technology and regulation.”

“We must rise to this challenge and pave the way for an innovative future for brokers and our customers,” he said.

The conference has grown to be the “must-attend” industry event and this year’s speakers include economist Stephen Koukoulas, futurist Steve Tighe, mental health advocate Anthony Hart, social media and small business marketing strategist Carolyn Miller and ASIC’s front-line team.

Mr White explained that while it was free for FBAA members, all within the industry including brokers who are not members are encouraged to come.

“This is for the entire industry including brokers, BDMs, lenders, small business people and senior executives.”

However he added that it was also a time for industry professionals to network and renew relationships with others across the country, and for people to enjoy a well-earned break.

“Being a one day and night event, many choose to take advantage of the beautiful Gold Coast and spend time with family.”

The conference will be followed by a gala dinner – a night second to none that must be experienced to be believed – incorporating the ‘Awards of Supremacy’ recognising broker achievements. Nominations for the awards close on September 9.

Mr White said tickets are on sale through the FBAA website.

 

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Phone: 07 3847 8119 Email: info@fbaa.com.au

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