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Written by Michael Calam
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Wednesday, 02 September 2009 18:38 |
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One of the most common mistakes amongst brokers is that they immediately start looking for a solution when a client makes an inquiry. It's kind of like a game of word association. The client says - regional property 10 acres - the broker immediately thinks CBA, any postcode policy. The client says - I want to build a portfolio of properties - the broker jumps straight to St George Portfolio loan. There's an inherent danger in this approach. Stop and imagine if you went to your doctor and told them that you had a runny nose - and the doctor immediately pointed at you and said Swine Flu. That diagnosis occured without any investigation, without any attempt to look at the entire picture. Likewise I'll frequently see brokers run away from an inquiry that they're unfamiliar with, such as a SMSF loan, a business loan, a reverse mortgage. STOP RIGHT THERE - don't run away from business. When you get an inquiry from a client, regardless of how the inquiry may be worded or put to you, remember this basic fact - the client wants to borrow money. Regardless of whether it's a personal loan, home loan, business loan or whatever - the basics remain the same. So, prior to even thinking about how you could solve the problem of getting them the money, go back to the basics of lending. Organise a time to sit down (or talk on the phone with the client) and establish the following: - What is the clients current situation?
- What is their desired situation?
- Obtain a list of their assets and their liabilities.
- How do they make a living?
- What documentation (if any) can they use to verify their income?
- What are the details of the asset which they wish to purchase/refinance?
- What is their credit history?
- Have they applied elsewhere for this finance?
Then, advise the clients that you will go away and research their options and that you will return to them by (give yourself enough time) with your results. Then, if the scenario is outside your expertise, find an expert in that field and consult. Remember, most of us have engaged in a 1 week course to obtain our Cert IV to enter this industry - do not expect to have all the answers because you won't. But then, even a doctor after 5 years of study and 10 years of practicing medicine, will sometimes need to go away and read a textbook or bring in a specialist - BUT - you always visit your GP first don't you? And that's what most of us brokers are, General Practitioners. Our job is to ask questions and ascertain the clients circumstances and then try and find a solution if we can, otherwise we call in a specialist. |
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Written by Michael Calam
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Saturday, 08 August 2009 11:24 |
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As quick as I was to jump on my soapbox about Homeside, I'll have to take a moment to talk up the service I've been receiving lately from Firstmac. The turnaround times have been consistent, the BDM contacts me when I submit a deal and most importantly, when the credit guys request further information, the BDM contacts me to talk about how to best present the information. Not only that, but when my clients received their letters of offer, they came complete with the direct contact details of the staff member working on the file. Both my clients and I can contact the individual who is working on the file. Firstmac have some good products, but when you add in the great service their providing then they are really standing out in a sea of mediocrity. It will be interesting to see how these service levels fair if their volumes increase, but, it seems as though they have a focus upon service which will stand them in good steady even through the busy times. |
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Written by Michael Calam
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Monday, 24 August 2009 10:09 |
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The FHOG boost will end on 30th September 2009. This will reduce the total amount of FHOG available for first home buyers, but there still will be a FHOG as well as the stamp duty concessions (which vary from state to state). There are still a couple of lenders who provide 90% loans with no genuine savings, this means that first home buyers can use gifts, tax refunds or even personal loans (not optimal) to add to their FHOG to provide them with the required 10% deposit. Given the end of September deadline, now is the time for brokers to contact those people who have made inquiries with them over the past 12 months for First Home buying opportunities and to explore the possibility of helping these people to buy prior to the boost expiring. Remember that for clients who don't have genuine savings, the lenders will focus upon a clear credit history and adequate serviceability. |
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Written by Michael Calam
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Wednesday, 15 July 2009 01:00 |
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Homeside or should I say Homeslide is the latest lender to fall into the trap of overpromising and underdelivering. They're not the first lender to do it, and they won't be the last, but how they deal with it is very important to us as brokers. The situation usually occurs when a lender goes to the market (or their broker partners) and talks up either a new product or great service. On this occasion, Homeside has done this on both counts. Back when the 100% loans were coming to an end and RAMs and St George had attrocious turnaround times, Homeside came out with some decent products AND some of their BDMs were contacting us regularly, talking up their great turnaround times and excellent service levels. This was also reinforced through their website advertising "Refinance in days, not weeks". Unfortunately, as brokers we tend to move in a scrum. When a lender puts up their hand with a good offering, we flock to them. The lenders know that this happens, but invariably they act surprised when their volumes increase and rather than ramp up to deal with the influx of new business, their service levels or turnaround times will blow out. A few years ago Suncorp and Bankwest both did it, towards the end of last year ANZ did it, RAMs and St George certainly did it earlier this year and Homeside has definitely done it now. The situation is exacerbated at the moment by the fact that most of the banks have cut their staffing levels following the GCC. So we know that it happens and that this is a factor in the industry. What is then important to us is how the lender then manages this process. Obviously putting on more staff, working longer hours or creating new processes assists. BUT, for us as brokers, one of the most important factors is to have the ability to escalate a file that is in genuine need of assistance, particularly if a client is going to lose a contract on a house. In this respect, Homeside really seems to have fallen over. The BDMs have a very limited ability to escalate any files (for some BDMs only 1 file per day), the BDMs managers are uncontactable, the helpline staff are powerless and the complaints people don't acknowledge you. Surely there must be someone within the organisation who can take accountability and actually make things happen. Unfortunately not in this case. For me personally as a broker, the most important attribute I seek from the lenders I deal with is for the BDM to be able to take charge and to be able to assist us. Sure, their job is to bring in the business, but that isn't just by talking up the products, it's by acting as the mediator between us and the lender and by being able to be a voice in the organisation. |
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