F&C Magazine
Review of 2023
From the Coffee Maker The year the mortgage “cashback war” stopped. Someone had to call time and that someone was the CBA. This reflects the search function as “cashback offer” has fallen off the list of most common search word on F&C. But funnily enough, the most searched for term in 2023 was actually “CBA Discharge Link”. 2023 also saw the majority if brokers use the word AI. Without a doubt Tech disruptions truely hit the broker market (for better or worse)? What will 2024 hold for Brokers? Will you finally be able to submit a deal direct from your aggregator platform rather than
“Not another Awards
go through a third party like NextGen? Will you miss those red
Night!” - that was the
crosses?? Will the banks go it direct when they have a digital
main response when I
offering that works?
pitched the idea of an F&C Awards Night. So I
2023 also saw us attempt something we have been holding off on -
was determined to
our own awards night. Would brokers put up with one more
make it different.
Awards Night to the already full calendar? Luckily the answer was yes. What a great night where we celebrated the weird and wacky things that went on in the community. As well as the Lenders and Allied Services that you loved! Hope to see you in October of 2024!
We gave away a trip for 2 to China in 2023. What will be the destination for next years prize? Come to the Awards Night in October 2024 and find out!
Group membership actually grew this year to 9,300 before the cull just before Christmas to bring members numbers down to 9,283 (for a comparison, membership in December 2022 stood at 9,208). The number which has been consistent is the “Active daily”numbers which strands at a tad over 5,000. This is the number of people who have logged on everyday (with the exception of FEB when it looks like brokers really go on holiday mode. So in summary…. Not much as changed and F&C is still a popular place to go and ask for help or keep up to date with what's the go in the industry.
Whilst last year, Thursday was the most popular day, this year it was Wednesday - smack bang in the middle of the week. Last year, in 2022, it was Thursday at 8pm!
F&C Awards Night
With the event itself sold out two weeks
This year when we first promoted the prize
before hand, the pressure was on to put on
as a trip to China for two to China, some
a good show! Thankfully we had the
people thought we were joking! We werent!
Incredibly Awesome Beth Comino and
The trip was won by Craig Faulkiner who
Sadish Visvalingam to help steer the night
had the highest score at the end of the
by being MCs!!
night!
The aim was to be different from every other industry award and we believe we achieved that. Where else will you find a Category like “Lender that made your Cry” or “Best Hold Music”? Obviously there were more Categories that reflected service providers to brokers as well as to celebrate the community and what was unquestionably unique about it. Eg: “Member with the most deleted comments”!
Find out who won what here: https://online.fliphtml5.com/wcyhl/nzld/
NEWS 2023 NEWS NE
RBA - New phone Who This? In July of 2023, the RBA announced that Michele Bullock as Governor of the Reserve Bank of Australia for a seven-year term commencing 18 September 2023. She replaces Philip Lowe whom the media criticised for stating rates will not increase till 2024 leading to people to “over borrow” and hurt themselves when rates increased. In other news… the average Australian borrows money based on what the RBA says….
When will rates go down? The RBA's 'no change' announcements in July, August, September, October and December 2023 have provided short periods of relief for many mortgage holders. But the question is - when will rates drop again? For that we need to look at what is happening in the US. The US FED signaled at its meeting in December 2023 that it is done raising its policy rate and is poised to reduce it by as much as 75 basis points in 2024!
Building Companies Falling over According to ASIC, a staggering 660 Building Companies in the first 3 month of the 2023-2024 financial year. Factors that come up again and again in the media are: increases in interest rates and cost of materials, labour shortages and supply-chain issues. Where does this leave brokers? A mad scramble to find a lender that will do half completed properties? Finding a new lender but now servicing does work due to the new interest rates.
What Mortgage Cliff? By October of 2023, the experts in the media decided to ask whether the “Mortgage Cliff” they were all talking about at the end of the previous year was just a myth. Sure there were some people who found themselves in awful situations, but for the most part, it appeared that the vast majority of mortgage holders had weathered the storm well. We have averted the “its the brokers fault” for borrowing too much scenario. Hopefully this will continue into 2024!
Revenue NSW Payroll Tax issue. Rev NSW believes that a payroll tax should be applied to Aggregators and should be backdated (up to 8 years). Both Industry bodies have worked to resolved this and some Aggregators (LMG) have even taken legal action to argue against this. As reported in March of 2023, the broader concern is whether the other states will also take NSWs lead and follow suit. And if so, will it mean the demise of smaller aggregators? Will the cost be passed onto brokers?
End of the CASHBACK War? The CBA was the first to end the CASHBACK offerings to win new to bank clients. And like a domino effect, the rest slowly did so too. The real question now is how the lenders will go about competing for new to bank customers? Rates??? Either way, it will be a good thing for brokers as the opportunity for refinances are there if you can avoid the tire kickers.
Do government schemes help? So many schemes to help first home buyers enter the market, but is it a catch 22? Do that actually help? Property prices continue to rise, so without government help, a fair few first home buyers will find it difficult to enter the property market. Between the FHOG and the First Home Loan Deposit Scheme you would think those buying their first home have it easy, but that is simply not the case. They are the first to bear the brunt of Rate Rises as well.
You Dont you feel like you are constantly under attack? In the sense that compliance year on year seems to be more, you seem to be working harder yet your commission hasnt really increased. They say it has, but its only really due to property prices increasing. What happens when prices go backwards? Would you feel the same? Dont even go onto the clawback issue! But yet despite it all, Brokers have continue to dominate with a tad over 70% market share! Well done you!
Most Commonly asked Questions in for 2023?
Most Commonly Asked Questions 2023 A Lot has changed, but a lot has stayed the same.Just like this whole page from last year! “Search and you will find, while most know that there is a “keyword” search function, some new to the community (or new to FB) still don't realise that such a thing exist. As a result we see the same questions being asked. Granted the “search is not perfect”, it is still interesting that the same questions keep on popping up year after year. That said one question raced into the lead this year and also dropped off at the end of the year. Can you guess what that question was?
CBA discharge
Who is (still)
Has anyone heard
link
offering
about (x) lead gen
Cashbacks?
business and are they reputable?
Lo Doc -
Changing
Lender Direct
Construction
aggregators.
team offering larger discounts
But clients still want
Usually done as an
either a High LVR or
Annon post.
Low Rate
/ cashback than that available to brokers.
Who can do No
Expat / Non
New or casual
LMI?
Resident Lending
income less than 3 months?
Add to that they are
Add to that they are
either teachers or
either teachers or
medicos or allied
medicos or allied health.
health.
Or OT /bonus in new role needed for servicing.
Who will Do Pre-
Which Lender
Loans not taken
approvals?
wont Credit
into account for
Score
servicing
Bad credit score but
Which lender would
wants prime rates
ignore Business Debts
Or who will honour pre-approvals given rates have now increased.
Predictions for 2024
Title Lorem ipsum dolor sit amet, consectetur
What
will
2024
bring?
More
refinance
adipiscing sed do eiusmod tempor This bringselit, us to Lender Retention. What an
opportunities for brokers as customers look to
incididunt ut labore dolore magna aliqua. absolute time wasteret/ mockery of a
refinance their expiring fixed rates - the fixed
Ut“partnership” enim ad minim veniam, between brokerquis and nostrud lender the
rate cliff only really began around June of 2023.
process is. ullamco For the most part nisi a broker wants ex to exercitation laboris ut aliquip
Or will it be a purchase environment where the
the client with the lender, work, client eakeep commodo consequat. Duisless aute irure
demand for properties has just not been abated
remains happy and the client stays with that dolor in reprehenderit in voluptate velit esse
even with the high rates?
lender. But no, the lender (not always) refuses
cillum dolore eu fugiat nulla pariatur..
to give a decent rate to keep the client, only to
Are people selling because they cant maintain
make a counter offer later when the client has
their loans coming fixed rates? Or are the influx
submitted a discharge.
of immigration numbers increased demand / maintained prices? Dont forget the experts
Tech will be a major theme for 2024. New tech
expected prices were to fall in 2023… some by
will come into play to collect client data quicker
alot!
and more seamlessly. Open baking will lead the way to faster turnaround times with the banks.
Year after year, broker market share has
This is great news, but hasnt this been occurring
steadily grown. 2023 was no exception, Will this
over the years, yet brokers feel like they are
continue into 2024 or will the Big4 try to claw
doing more in terms of compliance than ever?
back their market share in their proprietary channels? The CBA announced in Nov 2023
Largest Generational Wealth Transfer in
that is just what they intended to do. The
history is about to occur as the Boomers retire /
question in 2024 will be if the other 3 follow the
bequeath their assets to their millennial
CBAs lead?
children. The financial planning industry as well as the Reverse Mortgage industry will be
Talking about taking the lead from the CBA, they
making a major return as both these groups look
all did with regards to the removal of Cashback
to accessing credit and advice.
incentives to win new business. So without cashbacks, what will be the other lever to drive
Anyway we can go on an on, but we asked a
business in 2024? - Interest Rates.
few of our friends about what 2024 may look like. Each has a different perspective on what
There will be a lot of time spent / wasted on rate
to look out for. Industry body, major aggregator,
approvals this year. Business will be won / lost
sub aggregator, Lender, Specialist Lender,
depending on how much a broker may be able
Private Funder and a Broker VA Business on
to get over and above the carded advertised
their opinions. Can you spot the similarities
rates. This will apply most for refinances.
across all of them?
Anja Pannek MFAA CEO
Anja Pannek- What’s in store for 2024
With more than 70% of home loans written by brokers, and 4 in 10 business loans, brokers are ending 2023 in a strong, well-earned position. Of course, during 2023 borrowers once again faced interest rate increases, servicing challenges and cost of living pressures. And it was you, their brokers, who have been there to help find solutions, and that’s something to be proud of. As we close out 2023, here’s a few thoughts on 2024. Interest rates back in the news After a four-month reprieve from increases, November broke the streak and brought the cash rate back to the headlines. While there is speculation on when rates might begin to fall, it’s very possible rates will remain higher for longer and it’s something we should be prepared for. We know hundreds of thousands of home loans are still to come off those very low fixed rates in 2024. These borrowers will benefit from the help a broker provides as they prepare to feel a higher rate – perhaps for the very first time. Advocating for fairness Advocacy is a core part of the MFAA and that will remain unchanged in 2024. We advocate based on facts and data. We focus on solutions-based engagement. We highlight the value of brokers in the Australian economy. We advocate for fairness – fairness for brokers and their Clients. 2023 saw some movement around cashbacks and clawbacks in 2023 but there’s more that can be done, and we will keep advocating for a sustainable remuneration model for brokers in 2024. For your clients, the loan discharge process must change, and we want to see that happen in 2024. Making the most of technology Technology and AI is here, it’s only gaining steam, and I believe it’s something we should all embrace. Rather than taking over a broker’s role, technology will actually enhance your customer’s experience. If you’ve been hesitant to take up new tech, I challenge you to give try it in 2024. Give ChatGPT a go, or use an automated meeting note taker, and see what you find. Remember, technology won’t change the core of what brokers offer, the human element of the guidance and support your clients are seeking – your empathy, your understanding and your connection with them. Take a break, recharge and stay connected I believe the next 12 months will be a positive time for our industry, and the end-of-year break is the perfect time to take a moment and appreciate your achievements in what has been a year that hasn’t always been easy for many brokers. I encourage all of you to take a moment to focus on yourself, recharge and stay connected to each other to get off to a great start to 2024. Anja Pannek MFAA CEO
Peter White AM MD - FBAA
Peter White - What’s in store for 2024
The past year has been boringly interesting for our industry in that there was not a lot of ’new’ impacting regulatory matters delivered to the table that caused any angst, albeit the FBAA is very unhappy as to where AFCA is wanting to head with their greater oversight on small businesses and we have pushed back quite firmly on this We also have been told it is unlike to progress too far but we want rest on our laurels on that and will keep the pressure on in all the right places. We have also kept the pressure on the clawback conversation and net of off set commissions. We now hope we will see stakeholder engagement and traction on clawbacks in the first half of 2024, and the net of offset commission payments did not get the recognition it should have with the Payment Times Reporting Act review but there si a progression on this come July 2024 whereby we will be making further representations to government to get this sorted. Otherwise we were fortune to have the year we had, ASIC stopped auditing brokers files for possible BID breaches, AFCA complaints continue to be very very low and dont rate on their charts its so small, we just need to start focused and dont become complacent and continue to do what is in our clients best interests. So what’s install for 2024, pretty much the same as this year for now. We’ve just had some research conducted into mainstream borrower land, which shows that although we thing that having a 70% market share of loans originated through the broker channel is great, which it is, but it is not the truth of the whole story. We have found that only 47% of first time borrowers are using brokers - wow that’s low in comparison too what we think - so when brokers are looking at where are my opportunities for growth, here it is, focus on first ’time’ borrowers …. they need your help! Otherwise in 2024 the most important thing to do is keep doing what you are doing, do not become complacent in your duties, adhere to BID and to meet your compliance needs ‘document document document’ ! Stay safe and have a wonderful Christmas and New Years Peter White MD - FBAA
Sam White - LMG Executive
Chairman
Sam White - The trends that lay ahead for brokers in 2024
The next wave of brokers We’re anticipating increased interest in broking as a career. We’ve seen the relationship between brokers and the marketplace soar in 2023, with brokers accounting for 71.5% of home loans written in Australia. With broker market share on the climb, there’ll be young, dynamic business people turning their attention to the industry in 2024. The trend has been building for some time, and LMG has developed its own community, the Young Business Owners group, to support the new generation of entrepreneurs. LMG is so confident of the future of the industry that we’ve developed the second iteration of Brokerversity, the centrepiece of our learning and development program. In 2024, Brokerversity 2.0 will be preparing the brokers of tomorrow through industry-built Certificate IV and Diploma qualifications, expert content and cutting-edge learning methods.
Exploring new relationships with clients Brokers are probably getting tired hearing about diversification. It’s been one of the buzzwords of 2023. But it's a point of discussion for good reason. There’s never been a better time for brokers to build-on the trust they’ve won from their clients. Brokers now account for 71.5% of home loans originated in Australia. In our own network, Loan Market’s Net Promoter Score has now increased to 98+. The value of finding new clients and new revenue streams is going to rise in 2024. Brokers can no longer be apathetic about new revenues. We can't continue to waste these opportunities- either for the revenue that’s on offer or the client relationship that is threatened by inaction. To support this, LMG acquired commercial finance tech platform CLE and continued its investment in LMG AF (Nodifi), furthering our commitment to be the home for all good brokers. Tech that saves brokers time and strengthens the customer experience The presence of technology in the broker-customer relationship will only increase in 2024. But brokers need to recognise that tech is the commodity - the difference is them. Brokers should embrace technology, rather than be fearful of it. In 2024, LMG will be working toward making the collection of client information more efficient for both parties. SmartData is a re-imagining of LMG’s Online Fact Find, which integrates with the all-in-one broking solution, MyCRM. Through new client permissions, it will slash the amount of time taken to process an application and is aligned to our commitment to save our brokers time. LMG is also working on incorporating electronic biometric ID verification for clients and doing it earlier in the loan journey. Again, this will save brokers time, reduce risk and improve our security credentials. We’ll also explore our first AI application for recommendations rationale and algorithms to identify opportunities for clients.
Helping brokers realise their business efforts Just as a new wave of brokers are tipped to enter the industry in 2024, we’ll also see business owners exit. Business owners need support in their succession planning so they can truly realise their many years of service. LMG has responded to this demand by establishing a Broker Succession Team, providing genuine value to brokers seeking to optimise their exit strategy. In a three month period, our LMG Succession team has been involved with and assisted 42 LMG Business with the sale of their trail books. Security and client peace of mind Data security has become a major concern for customers. Some high-profile corporate breaches have really caused concern. The investment in cyber needs to be big to meet community expectations. Lenders, brokers and aggregators need to have the right cyber credentials and practices in place to be part of an ecosystem that will be wholly digital. The industry needs to change how it operates for the digital world. Sensitive documents shouldn’t be shared by email, we should be using protected applications instead. It means using password managers, being cyber aware and thinking about how you set up your own technology networks. For LMG and MyCRM, we’ve achieved SOC 2 Type 1 accreditation and we’re working toward SOC 2 Type 2 which is an important benchmark for the financial services ecosystem. About LMG LMG is the largest and most progressive aggregator group across Australia and New Zealand supporting a community of over 6,000 brokers who excel in residential, commercial and asset finance. Our purpose is to grow outstanding broker businesses so that Australians & New Zealanders can get a fair go with finance. Proudly family-owned and led, LMG supports businesses operating under their own brand, or the Loan Market brand, and partners with over 70 banks and lenders. The business has grown rapidly, with LMG brokers helping customers settle over $120 billion worth of loans in FY23 and reaching a collective loan book of $350 billion.
Best Lender Merch as voted by you!
Wendy Brown | Division Director I Head of Broker Sales I Personal Banking Banking and Financial Services Group | Macquarie Bank
Wendy Brown – Welcome to 2024
Welcome to 2024, we hope you have had a relaxing break. Over the last 12 months, as the lending landscape has become increasingly more complex, our focus has been on making sure we continue to get the fundamentals right. Improving efficiency, the ability to self serve, and keeping your business and clients secure are paramount, together with an exceptional client experience. At Macquarie, we delivered a number of initiatives last year to support you in doing just that: ● The Macquarie Broker Portal is now available for support staff. Giving support staff access to the portal will help them respond to client enquiries and monitor the progress of clients’ applications in an efficient and timely manner. ● Our new digital ID solution using NextGenID went live, providing a faster and more secure way to verify clients. Clients will now receive an SMS with a secure link, enabling them to start the verification process when they’re ready. ● We now SMS you before calling to help you plan your time - as part of the credit application process, we send an SMS 15 minutes before we attempt to call you, so you know which client we’ll be calling you about. ● Always on support continues with the Macquarie Broker Help Centre, our one-stop shop for 24/7 support, enabling you to get quick answers to common questions. We’ve streamlined our Broker Help Centre by consolidating the content. We hope this makes it easier and faster for you to find the information you need. In 2024, we have a range of new and exciting initiatives to improve efficiency, productivity and most of all, improve you and your clients experience with us. From enhanced security features, to always on 24/7 support, we look forward to sharing more with you later in the year.
Wendy Brown - Division Director - Head of Broker Sales - Personal Banking Banking and Financial Services Group - Macquarie Bank
Ian Rakhit, Bankwest General Manager Third Party
Ian Rakhit, – That’s a wrap for 2023
There’s nothing like the end-of-year break to pause and reflect on the year that’s been. So much has happened in our industry over the last 12 months and I am excited about the year ahead. Bankwest is committed to being the best bank for brokers in the country, backing that goal with investment in our key channels of digital and broker. As I look back on 2023, I’m incredibly proud of the changes we’ve delivered to make broker and customer experiences simpler and easier. Our key technology enhancement this year was our bespoke document sharing tool DocBox. Today, almost 70% of Bankwest accredited and active brokers are using DocBox when submitting home loan applications. We simplified our document requirements for self-employed customers and improved our policy for customers who pay themselves a salary, which has led to a ~20% YoY increase in the number of loans submitted with self-employed income. We have also improved our offer for Investors, leading to a 30% increase in lending to this sector. Bankwest remains one of only a handful of lenders where every single BDM is supported by desk-based Broker Support Manager (BSM) to ensure our team are always contactable when you need us. Looking ahead, in 2024, we’ll continue to invest in the Bankwest broker portal. Excitingly, we’ll launch a fully self-serviced broker portal, where you can see deal updates or existing customer requests. Our unique case ownership support colleagues, who we know brokers appreciate, will still be here to help when needed. Excitingly, we’ll also launch a new virtual customer ID solution and an improved offset account opening solution. Our focus remains clear for 2024 – to be the best bank for homeowners and brokers in the country. As 2023 comes to a close, I want to end by saying thank you to our brokers and industry partners for your ongoing support. Have a great break and we look forward to working, innovating, and supporting more customers alongside you in the new year.
Ian Rakhit, Bankwest General Manager Third Party
Barry Saoud Pepper Money General Manager Mortgages and Commercial
Barry Saoud – 2023 Reflections Any way you look at it, 2023 has been a year of change and adaption. Despite the backdrop of 14 interest rate rises, and a cost of living blow out, this bull we call the Australian property market has trampled them all and continued to run. Brokers and the industry are helping clients navigate the complexities of the market and helping them understand what options are available to them - at a time when it can seem so many Aussies are being overlooked. As we head into 2024, interest rates are expected to experience a delicate dance and then stabilise. At pepper money, we foresee sustained demand for flexible mortgage solutions as the era of one-size-fits-all mortgages is fading, and bespoke lending options that cater to diverse financial needs will gain prominence. More borrowers with diverse financial backgrounds will be looking for someone who understands them, is willing to look at their unique situation and confidently provides a range of mortgage solutions that are in the best interests of the borrower. With this kind of demand, mortgage brokers are more important than ever to help everyday Aussies with their home ownership dreams. Despite the uncertainties that marked the preceding years, resilience will define the global economic landscape in 2024. Non-bank lenders, known for their adaptability, will play a crucial role in supporting individuals through economic fluctuations, offering stability when it is needed most. At pepper money, we are opening doors and creating inclusion in a market dominated by banks that have limited options for the realities of real life for so many borrowers. The acceleration of digital transformation in the financial sector is not new, but 2024 will witness a material leap forward. With technology maturing and artificial intelligence reshaping customer interactions, leveraging these advancements to streamline processes, enhance broker and customer experiences, and offer more tailored financial products will be critical. Going into the new year, it will be important for lenders to continue to consult with valued broker networks to identify new products, as well as policy extensions that are in demand to help them help their customers achieve a goal. Our research shows that the majority of Aussies (89%) still believe in the Australian dream of home ownership and with that require loan options and advice on how to choose the right loan in a complicated and fast-moving marketplace, making brokers vital. This year has taught us that despite the challenges, together our industry continues to go from strength to strength. Here’s to a brighter and more enlightening year in 2024.
Barry Saoud - Pepper Money General Manager Mortgages and Commercial
Michael Russell, Managing Director, Money Quest Group
Michael RussellPredictions for 2024 from an industry veteran
Broker market share Broker market share will continue to creep upwards as more bank branches close their doors and more customers recognise and revel in the unparalleled service and choice brokers provide. Home values Rule #1: Economist predictions about housing values always have been and always will be, wildly inaccurate. Rule #2: Never forget Rule #1. Home values will always rise in cities, regions and rural areas where demand for housing exceeds supply. As 2023 draws to a close, national home values are sitting at a new record high, as population growth continues to fuel red-hot levels of housing demand. Biggest challenge for home buyers Serviceability. We saw home values increase this year even as interest rates continued to rise, compounding the serviceability issue for aspiring homeowners. This will continue to be a limiting factor for many hopeful home buyers next year, as it is unlikely that APRA will budge on their minimum serviceability buffer of 3% anytime soon. Outlook for mortgage brokers Notwithstanding the obvious macro challenges – rising interest rates, world conflicts, inflation etc – mortgage brokers should look to 2024 with a strong sense of optimism. Opportunities abound in good times and in challenging times. In order to maximise these opportunities, it’s essential that brokers surround themselves with like-minded, positive and forward-thinking peers. Outlook for the industry We will see further consolidation and rationalisation of aggregation groups as these businesses strive to achieve greater scale and offset rising costs. The number of mergers and acquisitions at a sub-aggregation and broker group level will continue to grow as the first raft of meaningful industry retirements are announced.
Michael Russell, Managing Director, Money Quest Group
Ren Hor Wong CEO & Executive Chairman - N1 Holdings Ltd (ASX:N1H) | Property Financier & Private Credit Fund
Ren Hor Wong -
Title
Private Lending in 2023 and what will 2024 bring Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor One of the most aggressive RBA tightening cycles initiated in May 2022 has drastically thealiqua. incididunt ut labore et doloreshifted magna lending landscape in Australia, and the effect goes beyond home lending, spilling into commercial Ut enim ad minim veniam, quis nostrud lending and private lending, whereby these products traditionally rely on wholesale funding and exercitation ullamco ut rate. aliquip ex funding cost varies in accordance to bank bill swap, pretty much aligned closelylaboris to RBA nisi official
ea commodo consequat. Duis aute irure The changes undoubtedly shake up a whole lot of the industry and private lending is no exception. And fortunately it plays out to be a favor to upgrade the industry. costs and have dolor in Funding reprehenderit in liquidity voluptate velit esse come to see a consolidation of more deal flow to established lenders who have the ability and capacity cillum dolore eu fugiat nulla pariatur.. to fund deals. The industry is emerging with stronger governance, increasing awareness in brokers' community and new rules introduced by regulators. So what really happened in 2023? Just like home lending, the keyword "Refinance" was trending hot throughout 2023, but unlike home lending that was mainly due to cash rebate, sophisticated brokers in the market have been busying helping clients refinancing deals from casual lenders to more established private lenders in the market. Mounting funding costs have forced a lot of casual lenders who rely on mum-and-dad investors matching to pull out from deals, before or upon the maturity of their loan portfolio, because they no longer have access to funding that enables them to rollover or extend loans for borrowers. The market hence benefits the lenders who have resilient funding source due to strong compliance, governance and reputation. The brokers' community recognized the benefits of putting deals to lenders who are in the the private lending business for long. In November 2023, ASIC has introduced new rules in Unfair Contractual Terms for business lending, setting higher standard for the industry especially in the space of sub $5mil loan size. The new change marks another upgrade for the business lending and private lending industry, another positive sign for sophisticated brokers as better governance means clients' more receptive to solution-based lending. What's coming in 2024? With banks tightening their lending covenants and imposing higher interest coverage requirements, there may be more quality deals shifting into alternative lending. And the phenomenon we see in 2023 that casual lenders retreating from the market will probably persist into 2024. Meanwhile purchase activity is picking up while there is consensus among economists that rates might be near its peak if yet to. Therefore opportunities arise in three ways for sophisticated brokers who could capitalize in this market - commercial lending deals seeking light-covenant away from banks, loans that are due to be refinanced to another private lender, and investors who are entering the market. It's time to speak to accountants, bankers, liquidators and property agents, it's not uncommon there are many professionals out there who don't know much about private lending as a solution to solve clients' financing needs.
David Browne Founder and Director - Remote Broker
David Browne Outsourcing in 2024
Title Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor
Demand for customers to turn to a Mortgage Broker for loan options and advice is likely to remain incididunt ut labore et dolore magna aliqua. strong in 2024. As a result, we expect that demand for Outsourced Mortgage Broker Assistants and Ut enim ad minim veniam, quis nostrud general VA’s will continue to be strong to maximise cost effectiveness and free up time for the exercitation ullamco laboris nisi ut aliquip ex Mortgage Broker.
ea commodo irure Picture a future where everyday tasks like document processing,consequat. data entry,Duis andaute follow-ups seamlessly fall into place. It’s not just a change; it’s a dolor game-changing improvement, simplifying in reprehenderit in voluptate velitand esse documenting workflows, processes and unleashing fresh possibilities for brokers. cillum dolore eu fugiat nulla pariatur..
We are seeing Mortgage Brokers wanting a tailored solutions designed specifically for the Broking industry and their business assisting in the Residential lending space as well as Asset Finance and Commercial Property Finance. We are also seeing Brokers avail themselves of social media marketing staff or packages provided by their offshore service provider. Compliance & Data Security: There will be a continued focus on data security especially with the continuation of cyber-attacks and data breaches in 2023. The focus of Aggregators and Brokers has been on both Offshore and Onshore Outsourcing ensuring the outsourced roles are compliant with best practice (using ISO 27001 compliant Company for outsourcing). The usual Best Practice areas continue to be: ● ● ● ●
Storage of client data and compliance with Australian Privacy Principles in particular App 8.1 PC security including Multifactor Authentication using authenticator app’s, disabling of USB ports, PC monitoring software Office security – Biometric access, Mobile phone’s not at workstation, video monitoring Work from Office – WFH is still sought after however this can increase compliance risks especially if not outsourcing via a reputable provider that monitors and implements security measures. Work in the office is still the safest and preferred way to minimise compliance risks.
Employing direct offshore whilst it could save on costs, it is fraught with danger from a data security perspective and can be expensive to run if trying to implement security measures that a provider would do for you. We expect that this aspect of offshoring will be under increased scrutiny and become harder in 2024. Using a provider that will look after all day-to-day operations with the appropriate security measures in place will reduce a Brokers risk. In this ever-changing world, offshoring continuously transforms in the mortgage industry, adapting to these changes is like becoming a skilled navigator in the seas of offshoring. In 2024, it will be even more important for Brokers to avail themselves of the expertise of an industry specific Offshore provider such Remote Broker Solutions (RBS), a company certified with ISO-27001 and expertise in the Mortgage Broking industry. RBS stands tall as one of the leading offshoring solutions for mortgage brokers, ensuring your journey is not only smooth but also fortified with the highest standards of data security.
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