Australian Broker 12.06

MARCH APRIL 2015 ISSUE 12.06 12.05

$4.95 POST APPROVED PP255003/06906

+INSIDE + NEWS ROUNDUP A look at what’s been making headlines P4

+ ANALYSIS 100 DAYS AT THE HELM

MFAA CEO Siobhan Hayden’s first 100 days P10

+ BEST PRACTICE COMMISSION ARRANGEMENTS

How to employ fellow brokers without getting stung P12

+ SPECIAL REPORT WOMEN IN BROKING

A look at women at the forefront of the industry P16

+ INDUSTRY SPOTLIGHT

Katrina Rowlands: PASSING THE TORCH

Katrina Rowlands is one of the country’s most successful brokers, and she’s sharing her knowledge with a new generation

K

atrina Rowlands has had perennial success in the mortgage broking industry. At the helm of her Wollongong-based brokerage, Mortgage Success, Rowlands is the only broker to manage a spot in the top 15 of the MPA Top 100 list every year since its inception.

Now, Rowlands said she is sharing her knowledge with a new generation of brokers.

FULL STORY PAGE 14

THE NONCONFORMING MARKET

Opportunities abound in specialist lending P22

+ PEOPLE DIARY OF A NEW BROKER

An industry newcomer documents his first year P28

NEWS 2

brokernews.com.au

NUMBER CRUNCHING FIRST HOME BUYER PARTICIPATION 2015

FAST FACT

175% ME Bank has increased its broker-originated loans 175%, with the third party channel generating $1.1bn in home loan settlements for the half-year

FAST FACTS FROM THE LATEST ADELAIDE BANK/REIA HOUSING AFFORDABILITY REPORT

2014

National

12.42%

15.76%

NSW

13.85%

5.42%

ACT

BY THE NUMBERS

-3.5% VIC

16.99

13.70%

SA

4.68

15.89%

QLD

17.00%

19.51%

WA

19.57%

24.29%

Source: ME Bank

A total 51,396 loans were approved throughout January – down 3.5% from 53,254 the month prior Source: ABS

VICTORIA

Most affordable state or territory in which to buy a home or rent

27.7% of all Australian first home buyers are from Victoria

NORTHERN TERRITORY

QUEENSLAND

Largest proportion of first home buyers in the nation’s owneroccupier market

28.4% of median family income required to meet average monthly loan repayments in December quarter 2014

TASMANIA

SOUTH AUSTRALIA 22.6% of median family income required to meet median rent

Smallest average loan size

NSW

WESTERN AUSTRALIA

Only state or territory with the average loan size above the $400,000 mark

Average monthly loan repayment of $2,158

Source: REIA/Adelaide Bank

Source: Mortgage Choice

WHAT THEY SAID...

MARK HEWITT

PETER KELL

SIOBHAN HAYDEN

BRENDAN WRIGHT

“February is the real start to the mortgage year and overall we’re off to a flying start this year” P4

“Banning a product would indeed be a rare occurrence, but I would argue it is nonetheless important to have there” P6

“We didn’t get to 50.5% of the market because people don’t know what brokers do. We’ve got here because of the services and the value proposition we offer” P11

“At FAST, we believe that women have a powerful role to play in the ongoing development of our industry” P16

You

r

KER BRO nd Bra

DOUBLE NEVER FELT SO GOOD!

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WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates are subject to change. Approved applicants only. Lending criteria apply. Other fees and charges are payable. Liberty Financial Pty Ltd (ABN 55 077 248 983) (Australian Credit Licence 286596).

NEWS 4

brokernews.com.au brokernews.com.au EDITOR Adam Smith

AFM announces merger deal ■ Australian First

BY THE NUMBERS Mark Hewitt

AFG BREAKS 21YEAR RECORD ■ AFG processed $4.3bn

of mortgages in February, which is 58% higher than in January and 16% higher than in February 2014.

The month also saw the aggregator break a new record. On Wednesday 25 February, AFG processed a record $280m. This is the largest single day’s volume AFG has recorded in its 21-year history.

“February is the real start to the mortgage year and overall we’re off to a flying start this year. No doubt the February rate cut has made borrowers more confident, but it’s important to recognise the significant variations from one state to another,” Mark Hewitt, AFG’s general manager of sales and operations, said.

“We’re also keeping a close eye on the proportion of investors, but this hasn’t changed on the levels we’ve been seeing for the past 12 months.”

Loans to investors comprised 39.6% of all home loans processed last month, a similar figure to those reported each month for the past year.

$600k Brisbane median house prices recently topped $600,000 for the first time Source: REIQ

Mortgage has announced it will merge with National Mortgage Company, a move which will grow NMC’s loan book by more than $4bn and is projected to generate $1bn a year in new business and $30m per Tanya, Iain and David annum in revenue.

AFM managing director Tanya White called the merger a “hand-in-glove” fit.

“The merger compliments both of our existing operations and will provide our brokers and their customers with higher levels of service and support. It will combine NMC’s back office capabilities with AFM’s broker distribution platform and robust branding to build scale and growth,” White said.

AFM said the company had been “actively considering” opportunities for a merger with the approaching retirement of founding director Iain Forbes. Remaining directors Tanya and David White will remain in the business, with the company saying they would take “active long-term roles”. The AFM brand will also remain intact.

Melbourne man pleads guilty to multi-million dollar mortgage fraud ■ A Melbourne man has pleaded guilty to a $79m home loan

fraud conspiracy.

Mohamed Radhi Maki Ebrahim Ahmed, 28, has entered a guilty plea in a committal proceeding at the Melbourne Magistrates’ Court, to one charge of conspiring to defraud financial institutions.

The charge follows an ASIC investigation into finance broking company Myra Home Loan Pty Ltd, trading as Myra Financial Services, located in Footscray, Victoria. The charge relates to Ahmed’s role at Myra and the use of false documents in support of loan applications valued at approximately $79m.

Ahmed entered a guilty plea to conspiring with Najam Shah, 55, and Aizaz Hassan, 34, to defraud financial institutions through the provision of false documents in support of loan applications submitted on behalf of Myra clients between about December 2009 and December 2011.

The conspiracy involved the creation of false documents, including payslips, bank statements, citizenship documents and statutory declarations, submitted in support of at least 350 loan applications to numerous financial institutions.

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Australian Broker is the most-often read industry publication, according to independent research carried out by the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia in December 2008.

The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.

NEWS

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6

MFAA offers business plan template ■ The MFAA has announced a free business

plan template to assist its small business owner members.

The business plan template, designed specially to support small business owners, is available only to MFAA members by accessing the ‘member resource’ section of the MFAA website.

The template has been reviewed to fit industry requirements and has been checked by the MFAA’s in-house compliance manager to ensure that it meets the requirements of regulators.

“One of the key things that I have discovered in my broker forums is the industry need for better business management tools. We have listened and created a tool that will assist brokers to create a growth plan for their businesses,” MFAA CEO Siobhan Hayden said.

The template is designed to guide the broker through key considerations. It allows brokers

to decide if each section is relevant to their customer base and also provides a framework to assist time-poor professionals. It can also assist members with responding to aggregator requests for plans or in seeking business finance to resource their growth.

“Given our role representing the majority of brokers in Australia we are determined to provide membership value that includes better business management tools and advice. We did this last year helping hundreds of broker businesses with free marketing consulting and content for websites,” Hayden said.

ASIC wants power to ban products ■ ASIC is

asking for more powers to police banks, and wants to intervene on products it thinks could Peter Kell hurt consumers.

ASIC chairman Peter Kell has said the regulator should be granted powers for proactive “product intervention”, Fairfax has reported.

According to Fairfax, Kell told a workshop held by the Centre for International Finance and Regulation that the power to intervene in banks’ product design and marketing would allow the watchdog to address systemic issues rather than focusing on individual

banks and transactions.

“Banning a product would indeed be a rare occurrence, but I would argue it is nonetheless important to have there because as a regulator having a big stick, even if it is rarely or if ever used, is very useful to encourage better market outcomes,” Kell said.

Australian Bankers’ Association chief executive Steven Munchenberg said lenders were concerned how the power could be used in a practical sense, raising fears it could stifle innovation.

“We would want a lot of close discussions with government about exactly how this is targeted and about where it might be needed so it doesn’t stifle innovation and doesn’t increase risks for the banks or the regulator,” Munchenberg said.

BY THE NUMBERS

WORLD NEWS UNITED STATES OF AMERICA

MILLENNIALS LEAD HOME BUYING PACK Gen Y Americans are active in the US housing market. The millennial generation represented the largest share of recent buyers, according to the 2015 National Association of Realtors (NAR) Home Buyer and Seller Generational Trends study, which evaluated the generational differences of recent home buyers and sellers.

The survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent, with millennials using agents the most.

For the second consecutive year, NAR’s study found that the largest group of recent buyers was the millennial generation, those 34 and younger, who composed 32% of all buyers (31% in 2013). Generation X, ages 3549, was closely behind with a 27% share.

Millennial buyers represented more than double the amount of younger boomer (ages 50-59) and older boomer (60-68) buyers (at 31%).

CANADA 10.2%

Job advertisements rose 0.9% in February and are up 10.2% over the year to February Source: ANZ

CANADIAN HOUSEHOLD DEBT AT RECORD HIGH Households across Canada have reached record-high debt levels, with credit-market debt including mortgages, consumer credit and non-mortgage loans growing 163.3%.

Statistics Canada said this week that the leverage ratios among Canadian households jumped to a record in Q4 2014 as disposable income grew slower than borrowing.

Mortgage debt, in particular, went up 1.2% on a seasonally adjusted basis. Mortgage debt accounts for about two thirds of the total.

NEWS

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8

YBR sees loan settlements soar by more than 500% ■ Yellow Brick Road (YBR) increased its home loan

settlements by more than 500% following its aggressive acquisition push last year.

After acquiring major aggregator Vow Financial and major mortgage manager Resi Home Loans in May and July respectively last year, YBR increased its mortgage settlements by 514% in the six months to December 2014, compared to the same period in 2013.

The mortgage and wealth planning company’s loan book also increased by a massive 1154% over the same period, according to YBR’s half-yearly results.

Matt Lawler When the performances of Vow and Resi are included – before they were acquired by YBR – the growth sees mortgage settlements up 52% and the loan book up 21%.

The results also revealed that the Group’s overall product income increased by 74% as YBR’s Macquarie Bank white label product expanded into the Vow and Resi networks and Resi-branded mortgage products were offered through YBR branches and Vow brokers.

John Symond

AUSSIE LAUNCHES FREE CREDIT SCORE SERVICE ■ Aussie Home Loans has announced a partnership with Experian to launch CreditSavvy.com.au, a free service providing consumers access to their credit scores. Recent research commissioned by Experian revealed more than 80% of Australians have never accessed their credit report, while more than 77% don’t know their credit score could be used to determine their creditworthiness.

“Too many Australians don’t know or understand their credit score and how it could be used by lenders when considering credit applications. It’s in everyone’s best interests for this to change.

As it changes, the industry will become more personalised with lenders tailoring products and services to suit their individual customers’ needs,” Experian managing director of credit services Andy Sheehan said.

Aussie founder John Symond said the service would help consumers put themselves in a stronger position when applying for credit.

“Over the coming years credit reporting will have an impact on our industry, so this was a natural progression for Aussie which we are very excited to bring to market,” he said.

In addition to their Experian credit score, the service will offer consumers monthly score updates, credit file monitoring to update on changes to their credit file, access to news and tips on credit reporting and a comparison marketplace.

Report highlights chronic need for affordable housing DID YOU KNOW?

30

ASIC’s financial services enforcement action last year saw 30 people convicted and 14 jailed Source: ASIC

■ The Commonwealth Government’s Intergenerational

Report has highlighted Australia’s chronic need for more affordable housing.

The report projects that over the next 40 years the Australian economy will grow at 2.8% per annum, slightly less than the 3.1% per annum we saw over the past 40 years. Meanwhile, population growth is projected to be 1.3% per annum, which is also slightly less than the 1.4% growth per annum over the past 40 years, but still enough to see Australia’s population reach nearly 40 billion by 2055.

Master Builders Australia CEO Wilhelm Harnisch said this means Australia will need to more than double its current housing stock over the next 40 years.

“Australia will need more than 9 million new homes to meet the needs of the population projected in the Intergenerational report,” Harnisch said.

To do this, Harnisch says the government will need to seriously commit to tackling supply-side challenges to stimulate housing construction and keep housing affordable.

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ANALYSIS

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Siobhan Hayden: Paving the road Siobhan Hayden’s first 100 days as the CEO of the MFAA has seen her travel across the country to meet with brokers and use their feedback to guide the strategic plan for the industry association

W

hen Siobhan Hayden took the reins as chief executive of the MFAA in October last year, she said her top priority was to get in front of members. Three weeks into her new role, she began her journey across the country on her national road show, ‘Paving the Road’.

The broker-focused workshops, which ran in both CBD and regional areas across the country, were a chance for Hayden to get in front of members to discuss their perceptions and

requirements of the MFAA as their industry body.

One hundred days, over 40,000km and over 1,000 brokers later, Hayden is now ready to use the findings of the road show to form the MFAA’s strategic plan.

MEMBER SERVICES

The type and scope of MFAA member services was the top priority area identified by brokers, with 32% of all broker feedback from the national road show relating to what services the

MFAA provides to brokers as a part of its membership.

According to Hayden, one of the resounding issues brokers had in regard to member services was with the accessibility and availability of everyday resources for running better businesses.

“They [brokers] want a member area they can log into and say I need an HR template for employing a file manager, or I want the compliance documents for an ACL [Australian Credit Licence] credit representative. All of these things we actually have; it is just around how we can structure this correctly so people can get to it,” she said.

Another interesting, and somewhat contentious, issue about member services was around the MFAA’s role in generating leads for its members – is it the role of the MFAA as an industry body to generate leads, is it the role of the aggregator or franchiser, or is it the role of both?

For Hayden, the debate lies around whether providing leads for brokers is the most useful and efficient allocation of member fees. If aggregators, franchisers and brokerages themselves are already investing money into lead generation opportunities, can a broker’s membership fee be better spent elsewhere?

But Hayden – who has a passion for technology, having worked at Finware prior to joining the MFAA – says she isn’t going to rule the opportunity out. “… [W]e do already have the consumer website Mortgageandfinancehelp.com.au, but do we put a rate comparison option on that website that consumers can go to, then we can issue those leads to our association members? In five years’ time that [comparison websites] will become part of the mainstream,” she said.

“I’m not saying let’s do it; I’m just saying it could be an opportunity.”

The last major piece of feedback from brokers when it came to the MFAA’s member services was about the relevance and delivery of ongoing professional development.

“In regard to how we deliver

member services, a lot of brokers were asking for hands-on workshops and peer-to-peer learning sessions, which was really interesting feedback,” Hayden said.

“I do think our conferences have great speakers, but some of the feedback said some of it is not that relevant – it is not deep enough; it is not personal enough.”

CONSUMER AWARENESS

Creating and maintaining consumer awareness about brokers and what it means to be an MFAA-qualified broker was the second priority area identified, with 20% of broker feedback highlighting consumer awareness as a focus area.

The MFAA is often compared to the accounting body Certified Professional Accountants (CPA) – both are professional industry associations who uphold minimum education and experience requirements and provide a network of support and ongoing professional development.

However, the MFAA is often criticised for its lack of consumer awareness compared to the CPA. “At almost every session, brokers would say we [the MFAA] should do a consumer awareness advertising campaign like the CPA,” Hayden said.

“But we can’t do that. We can probably do things that are innovative and different, but we can’t possibly get the same penetration as the CPA brand.”

CPA Australia has a global membership of more than 150,000, with membership fees ranging from $310 to $690, depending on the type of membership. By comparison, the MFAA has a membership of more than 10,500, with membership fees ranging from $135 to $450.

While the MFAA may not have the resources to fund a campaign on the same scale as the CPA, since Hayden’s appointment in October it has revamped and renamed its consumer website Mortgage And Finance Help, as well as launched a Facebook marketing campaign aimed at directing consumers to brokers.

The revamped consumer site

brokernews.com.au

BY THE NUMBERS

40K

Number of kilometres travelled

1K

Number of MFAA brokers met

50

Number of presentations at industry events

30

Number of articles quoted in

2

Number of industry awards presented

1

Number of television appearances

now attracts 8,400 unique visitors a quarter, with a quarterly growth rate tracking at 200%.

The broker search function on the site attracts 2,570 unique visitors a quarter, with a quarterly growth rate of 98%.

Meanwhile, the Facebook campaign – which directs consumers to the Mortgage And Finance Help broker search function – kicked off in March after a trial in December. The MFAA now has plans to launch five more in the next 12 months.

While Hayden says the MFAA will continue to develop innovative and cost-effective consumer campaigns, she also highlighted that brokers still account for more than half of the total market share. “…[W]e didn’t get to 50.5% of the market because people don’t know what brokers do. We’ve got here because of the services and the value proposition we offer.”

INDUSTRY COLLABORATION

Stronger collaboration between lenders, aggregators and brokers was the third priority area identified by brokers, with 17% of broker feedback asking for the MFAA to advocate for more transparency between the key stakeholders of the industry.

Not surprisingly, clawbacks dominated broker concerns around better industry collaboration. Although Hayden believes clawbacks will always be a part of doing business, she admits there is still room for discussion.

“Clawbacks came up in every session and I spoke about them in every session, saying they are not going anywhere. It is a part of doing business, so brokers will just have to educate their customers and put it in their documents. It’s only a very small part of your business,” she said.

“However, I am happy to have a discussion around scaling back clawbacks. For example, if there is a 12-month clawback agreement, and at the 11th month it is due for a divorce, is there a possibility of scaling back that clawback?”

Channel conflict was another recurring theme for brokers, with many expressing concerns over bank branches poaching customers, and a lack of transparency regarding branch staff inducements.

“There seems to be feedback here that the heads of third party [at lenders] say that they love brokers and they genuinely feel they have a marriage with the channel, but when a broker sends a client to the branch to get

ANALYSIS 11

documents signed or ID verified, the branch staff will take the client or offer different products,” Hayden said.

“Brokers want more disclosure around branch staff incentives.”

When it comes to the MFAA’s role in addressing greater industry collaboration and solving the perceived lack of transparency, Hayden said many brokers expressed the need for a “code of conduct” with lenders.

NEW ENTRANTS AND SUCCESSION PLANNING

Fostering the industry right through from the start of a new broking career to the end was the final of the four top priority areas identified by the national road show, with 9% of broker feedback wanting better initiatives to promote mortgage and finance broking as a career for new entrants and to help brokers with successful succession plans at the end of their careers.

While the industry has recently aimed its focus towards attracting school or university graduates, or “vertical growth”, Hayden says there is huge potential in “horizontal growth”.

To help existing brokerages find and hire new staff, Hayden said brokers also suggested that the MFAA invest in its own recruitment board on its website. “… I’ve had a lot of brokers say to me it would be great if they could post up an advertisement saying they are looking for a file manager. Can we have a Seek.com.au for our own industry recruitment?”

When it comes to helping brokers grow thriving businesses for successful and profitable succession plans at the end of their careers, Hayden said brokers wanted a mentoring or training program for existing businesses that was as deep as the program for new entrants.

“Obviously we have a mentoring system for new brokers … . But then also brokers said to me, ‘Well, you’ve got the mentoring program but I am an existing business and I don’t need to be mentored, but I want to learn more about running my business.’

“We also had a lot of feedback around doing training specifically for brokers, but what about file managers or secretaries? Brokers were asking if there is anything we can help them deploy in their businesses to help the different roles, which I thought was a good initiative.”

11

BEST PRACTICE 12

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Making sure commission arrangements won’t crumble your credibility How brokers can structure problem-free commission arrangements to avoid big trouble down the track

D

rawing up a commission arrangement for the newest member of your broker team can be a finicky process so it’s best to get the basics out of the way first, even if they may seem obvious.

Those basics are the fine-print differences between an employee and an independent contractor that you may have forgotten about, and they are important when it comes to who can enter a commission-only arrangement and who cannot.

If a new broker is to be an employee of the company, they cannot be hired on a commissiononly basis, says PCC Lawyers associate Lucienne Gleeson, as it would breach the Fair Work Act and the national minimum wage order which is made each year by the Fair Work Commission under the Act. However, an independent contractor can be paid on a commission-only basis, says Gleeson. “An independent contractor could potentially be

paid a fee for any successful brokerage deals made, but not paid any fees for any work which does not result in a loan being taken out. Whilst this might be likened to ‘commission’, it is instead just payment for services provided.”

Gleeson says this is where companies need to be extremely wary that such relationships are not in fact sham contracting arrangements where the person has been given the title of ‘independent contractor’ but is actually an employee missing out on their minimum wage entitlements.

“Whether sham contracting takes place is an objective test,” says Gleeson. “Whilst someone might be called an ‘independent contractor’ they will in fact be considered an employee if the relationship traits are akin to those of an employer/employee.”

Brokers may also be covered by the Banking Finance and Insurance Award 2010, says Gleeson, which sets the minimum

EMPLOYEE OR INDEPENDENT CONTRACTOR? If someone is an employee they:

are required to work set hours

cannot hire their own qualified employees

cannot take leave when they want

have the company business cards and email address

weekly salary that must be paid to relevant employees.

So brokers employed by a company can have a commission scheme on top of their minimum base salary, as entitled under the national minimum wage or relevant award classification.

COULD THE PERSON YOU ARE CONSIDERING ENGAGING AS AN INDEPENDENT CONTRACTOR IN FACT BE CLASSED AS AN EMPLOYEE? Gleeson warns strict penalties are incurred if companies have entered into a sham contracting arrangement and failed to provide a base wage under a commission agreement to those who really are employees, not independent contractors.

“If companies do not pay at least a base salary that meets the minimum wage, they are not only liable for having to back-pay the employees but could also be exposed to penalties under the Fair Work Act of $51,000 for companies and $10,200 for directors of companies.

“It is therefore really important that companies take this issue seriously and do not employ people on commission-only basis.”

TIPS FOR STRUCTURING EMPLOYEE COMMISSION ARRANGEMENTS To quell disputes which often occur over what the terms of a commission arrangement are, Gleeson says to clearly define a commission structure in writing and to include: discretionary elements to the structure, such as if the employee’s employment is terminated they will not be

paid any outstanding commission how much commission can be earned and on what basis, ie percentage of sales; a fixed payment for each sale when the commission will be paid to the employee signatures of both the company and its employees

COMMISSION-ONLY STRUCTURES FOR INDEPENDENT CONTRACTORS

Gleeson recommends independent contractor arrangements operate under a written contract rather than on verbal terms alone, for the protection of both parties, and to ensure everyone is on the same page.

Set out what the services provided are and how much will be paid for certain outcomes.

Do not set hours of work but instead focus on the achievement of outcome – successfully selling loan products.

Must include a termination clause and how much notice must be provided by either party to terminate.

When asked if she has any ‘safety net’ tips for brokers finding themselves at either end of a commission arrangement, Gleeson says try to look at the situation from an objective point of view.

“Could the person you are considering engaging as an independent contractor in fact be classed as an employee?”

She recommends seeking legal advice on the complicated determination but that the path of less legal risk would be to engage someone as an employee.

Gleeson says it’s better to be “paying them at least the relevant minimum wage plus commission than to be in the sights of the courts and the Australian Taxation Office because you have tried to save money by hiring someone as an ‘independent contractor’ when in fact they may not be that.”

NEWS 14

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Katrina Rowlands: CONTINUED FROM PAGE 1

Passing the torch Katrina Rowlands is one of the country’s most successful brokers, and she’s sharing her knowledge with a new generation

MY FUTURE LIFE IN THE INDUSTRY IS TO DO MORE OF WHAT I REALLY ENJOY, AND THAT IS WORKING WITH PEOPLE

“We’ve been working toward me personally not being the only one to deal with clients, and to make sure the staff feel as respected, professional and capable. From 1 July, my plan is to have each authorised person recording their own deals through AFG and getting the credit,” Rowlands said.

This doesn’t mean Rowlands intends to step away from the business. What it does mean is that she’s free to entrust her staff to handle more of the day-to-day duties, while she remains available to coach, mentor and perhaps even pursue new opportunities in mortgage broking.

“That allows me to step back a little bit from the limelight, while the client knows they’ll receive the same experience and service.

I’m always there to back them up with my expertise, business acumen and skills,” she said.

For Rowlands, stepping out of the limelight is an encouraging sign for her business. It means Mortgage Success has matured.

“I feel like I’ve grown up. I now feel like I’ve become the managing director of my company, and I have managers under me,” she said.

SHARING KNOWLEDGE

R

owlands said she’s spent the last few years focused on training her staff to deliver the same level of service her clients have come to expect from Mortgage Success.

“All the coaching and mentoring I’ve had in my business this year is really coming to the forefront. I now have four accredited

representatives in my office who I’ve been working with and training, and they’re all basically home grown,” she said.

As her four accredited reps become more proficient, Rowlands said she is increasing the responsibility vested in them.

She said she’s moving toward her staff taking a more central role in the business.

As one of the industry’s most high-profile brokers and an advocate of women in mortgage broking, Rowlands now has four women working in her business who she’s helped to guide into the industry. She said she takes her mentoring role seriously, and has been encouraged by the growth of the women working beneath her.

Rowlands shared a story of the unique way one of her accredited representatives came into her business.

“One of my most successful stories of coaching and mentoring is a lady who originally started working for me cleaning my house. We became good friends, and as the relationship grew she said she really enjoyed working together. One day after cleaning the house, she left me a note saying that if there was ever the opportunity she’d like us to work together. Within a month she was working for me,” she said.

Rowlands said she was impressed with her friend’s integrity and work ethic, as well as the fact that she was eager to take on a new challenge at a later stage in life.

“She was a mature lady who was willing to take on the responsibility of something new,

fresh and highly demanding.”

This kind of work ethic and culture, Rowlands said, is common to the brokers working at Mortgage Success.

“Because of the culture and the respect we have for each other, we are appreciative of the time and effort given to each other and the teamwork. Everybody in the office will help everybody, and the customers know that,” she said.

Rowlands has helped to shape this culture in the way she goes about mentoring her employees.

“I’m all about encouraging people to be the best they can be.

I do a lot of real life mentoring.

I’ll listen to the way a conversation has gone, and then I’ll say, ‘Come talk me through that. How could we have handled that more strongly, warmly, comfortably or emphatically?’

I hear and watch. What people do well, I reinforce that behaviour, and I catch things where the link isn’t quite as strong,” she said.

And mentoring isn’t about walking people through the technical aspects of the business, Rowlands said. Instead, she’s more focused on helping to develop high level customer service skills.

“I’m not telling them how to do things in the process. I let the team members teach each other the process. It’s efficient, it’s standardised and it’s replicated across the business. I teach them how to speak to the client, the nuances of listening to the client and learning from client reactions.”

It’s this kind of mentoring that Rowlands is keen to do more of as her time is freed up. While some brokers prefer to bask in the glow of recognition, Rowlands said she’s happy to step back and let her team reap the rewards for their success.

“That is the goal for me, that my future life in the industry is to do more of what I really enjoy, and that is working with people. I can’t wait to sit at an awards ceremony and one of my team is up there winning awards. And with them starting to send through deals on 1 July, it wouldn’t surprise me if there was one up there the following year at the AFG awards,” she said.

Meanwhile, Rowlands said she’s eager to take a more active role in sharing her knowledge and expertise across the industry.

“I’m at the stage where I do want a new challenge. I’m enjoying that I can take another look at my priorities. Like I said: I’ve grown up.”

THE COALFACE brokernews.com.au

15

TECHNOLOGY UPDATE

Tailored training tips the scales Navigating the broking world can be daunting for a new recruit

Tony Carn Sales director, NextGen.Net

Steve Sampson Head of Third Party Distribution, Bank of Sydney

Bank of Sydney extreme makeover

By Jill Fraser

W

Scott McCartney

hat really comes across when talking to Scott McCartney is his genuine passion in giving his new recruits the best start to broking they can imagine, through Let’s Finance’s very own tailored cadetship.

General manager of the Western Australian brokerage, McCartney’s team is among the few who specialise in construction finance.

“A lot of experienced brokers don’t want to do construction because it is harder, it does take longer,” McCartney said.

That was part of the reasoning behind the training program, allowing young, keen starters with no broking background to be tailored to the needs of the business, especially when it comes to writing complex construction loans.

“We don’t hire experienced brokers,” said McCartney.

“Unfortunately a lot of brokers have bad habits.”

He said their intricate understanding of construction finance sets them apart from other brokerages along with their customer focus.

“Our interview process is all about educating the customer. We pride ourselves that our customers walk out of here knowing what’s going on as opposed to being confused.”

And having a comprehensive training course quickly equips new brokers with the knowledge they need to do just that.

“One of the biggest hurdles is just getting that knowledge,” said McCartney. “Brokering is a bit of a secret society – it’s really hard to get into and when you get into it, it’s really hard to get the right training. It’s a bit of a trusting thing; people don’t want to share their knowledge.”

McCartney has seen each one of Let’s Finance’s nine brokers through the three month intensive cadetship which covers everything from the sales process to product knowledge to cross selling, with a scenariobased approach.

All his brokers have come from banking or car finance backgrounds, said McCartney, which was a deliberate choice. The brokerage is very thorough in their recruitment process as McCartney said he can teach them how to be a broker, but it’s whether they have the personal traits to succeed that is most important.

“Someone who’s very approachable,” said McCartney, is vital. “Someone who’s relaxed, has got a good work ethic and someone who’s very good at working on relationships, because that’s the stuff we couldn’t teach.”

Bank of Sydney rebranding and recent entry into the broker channel are outward signs that the bank is undergoing a dramatic transformation.

But dig deeper and a fundamental shift in strategy and ideology reveals the key change.

“We’re focused on achieving streamlined processes while retaining all the benefits of a boutique bank,” according to Steve Sampson, the bank’s newly appointed head of Third Party Distribution.

Streamlining processes has entailed a significant shift of transitioning from manual to electronic lodgement.

“We’ve listened to what brokers want and tried to meet every one of their needs,” Sampson said.

“One of our first considerations was a sophisticated process that will help us deal with the anticipated increase in application numbers.

“We chose NextGen.Net as our provider because we’re now in a position where we’re going to grow steadily; and we need an innovative provider that is forward thinking and can supply us with the best in market,” he added.

The bank has been operating in Australia since 2001. In May 2013 it rebranded as Bank of Sydney, with the vision to be “Australia’s only true relationship bank”.

In August last year it announced its entry into the third-party channel, promising brokers generous commissions (upfront 0.70% plus GST and trail from year one of 0.20% plus GST) and a favourable clawback policy (75% of upfront and only applicable in the first year).

NextGen.Net’s trailblazing and continuously evolving electronic lodgement service, ApplyOnline, has introduced Bank of Sydney to centralised processing.

The lender is now converting from processing loans through its branch network (16 branches) to centralised processing.

NextGen.Net sales director Tony Carn sees ApplyOnline “revolutionising” Bank of Sydney systems.

“It’s a tool that delivers automation into processing,” Carn said.

“ApplyOnline introduces not just distribution to Bank of Sydney to tap

into the broker market, but as a lender it provides an enormous number of benefits and potential benefits.

“Our software is a service, a web-based application, that gives them the ability to allocate loan processing to anyone anywhere.”

ApplyOnline provides an ‘Application Centre’: a portal that allows lenders to view applications regardless of where the applicant is located, plus check to see whether the loan meets their serviceability criteria.

Choosing ApplyOnline was an easy decision, maintains Sampson.

“ApplyOnline is setting the standard, it’s captured the market and it doesn’t phase brokers which helps us with our implementation process.”

Declaring that Straight-Through Processing is very close to his heart, Sampson goes on to say that ApplyOnline will establish a crucial seamlessness within the bank’s systems.

Sampson has been on board at Bank of Sydney since June 2014, consulting to bring the bank to market in the third-party space.

“It’s a really exciting adventure because it’s meant starting the whole thing from scratch, including IT, engaging in negotiations with brokers and aggregators, and implementing systems.

“I know we can make a difference,” he said, then laughs. “But because most brokers know more than we do about how ApplyOnline works, we’ve had to learn from them!”

ApplyOnline represents a whole document management solution.

“So, for example, when a broker is sending payslips and bank statements, they go into the online system, a confirmation is received that all requirements have been met and if anything is missing that gets communicated to the broker,” says Carn.

“Certainty equates to efficiency,” he said. “The lender can proceed with assessing and processing an application having the certainty that it meets the quality standard necessary for them to process the loan.”

SPECIAL REPORT

brokernews.com.au

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Women in Broking As mortgage broking becomes more diverse, women are moving to the forefront

W

omen are increasingly making waves in the mortgage industry. With female brokers representing a growing proportion of the industry’s high performers, mortgage broking is becoming a more diverse industry. Australian Broker spoke to some of the industry’s most unique and innovative female brokers for our inaugural Women in Broking feature.

OUR BUSINESS IS FOCUSED ON PROVIDING FINANCE SOLUTIONS, NOT JUST MEETING THE NEEDS OF A CURRENT FINANCE TRANSACTION

SPONSOR’S MESSAGE

As an active supporter of women in mortgage broking, FAST is pleased to partner with Australian Broker on this inaugural report and recognise some of the industry’s most impressive female brokers.

Traditionally, the vast majority of mortgage brokers have been male, but the tide is slowly turning.

According to figures from the Mortgage & Finance Association of Australia (MFAA), as many as 40% of new broking members in 2014 were female, a positive sign that gender diversity is increasing in our industry.

At FAST, we believe that women have a powerful role to play in the ongoing development of our industry, and we are seeing many female brokers like those featured in this report build some exceptional careers.

Congratulations to all of the women featured across the following pages – and to the many other hard-working, successful female brokers out there. We are both excited and privileged to have you in this industry.

Brendan Wright CEO, FAST

FIONA NADAYA, YELLOW BRICK ROAD PENRITH AND ST MARYS They say ‘life begins at 40’ and for Yellow Brick Road Penrith and St Marys wealth manager, Fiona Nadaya, that is exactly what happened. The mother of three was running a café with her husband when she found her true calling. Fiona always enjoyed talking to customers from all walks of life in the café, but

wanted to help them in a more meaningful way.

“The guy who owned the Yellow Brick Road branch from across the road would always come in for lunch, and I told him I was looking for something different, so we sat down and had a chat about mortgage broking and it sounded so exciting.”

Nadaya said she faced a few cynics when she decided to have a complete career change, but just two years later and she is already making a name for herself within the industry. Nadaya was recently honoured amongst the Yellow Brick Road branch network with the ‘Rising Star’ mortgage award.

Her advice for other women new to the mortgage broking industry is to always back yourself and just “go for gold”.

“Don’t be shy. If you don’t understand something and you’re sitting next to someone who has 20 years’ experience, big deal, just ask them. If you are new, be proud. Don’t hold back and go for gold.”

TRACY KEAREY, HOME LOAN CONNEXION Director of Home Loan Connexion in Woolloongabba, Queensland, Tracy Kearey started out as a personal assistant to a mortgage broker over 16 years ago. She not only started and grew a client base, but all this while being a single mother, balancing both worlds.

But it’s helping people realise their financial dreams that she really loves most. “Offering a superior level of customer service has always been a part of my DNA.” Kearey says she is encouraged to see more women enter the industry. “It’s empowering to see women following their entrepreneurial spirit, by establishing their own businesses, setting their own incomes and creating their own financial independence.” A supportive team makes all the difference, says Kearey, especially having good mentors.

“Continued education, listening and learning from those who knew more, instilled me with the confidence to always be prepared and ready to take the next step up on the ladder to success.”

OFFERING A SUPERIOR LEVEL OF CUSTOMER SERVICE HAS ALWAYS BEEN PART OF MY DNA

REBECCA BARBE, FINANCE SOLUTIONS QUEENSLAND After 13 years with CBA and ANZ, Rebecca Barbe felt it was time to take her passion for helping people to the realms of self-employment – going from the rigidity of one world to the flexibility of another. Although easier to combine with family life, starting a business from scratch took time. “Building up a brand is tough,” says Barbe of her business Finance Solutions Queensland.

“And wearing all the hats, such as marketing, sales, admin, PR, IT. As the name suggests, our business is focused on providing finance solutions, not just meeting the needs of a current finance transaction and moving on.”

Barbe provides a full solution to her customers, from equipment finance to home loans to full commercial requirement. Being a traditionally male domain, Barbe says she would love to see more women in the commercial broking space. “It does come with its challenges, such as a distinct lack of invitations to sporting functions, golf and the like where a lot of networking still occurs but that’s all part of the challenge to pave the way for more females in the industry. Although I am not great, I do own my own set of golf clubs!”

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I PROVIDE A SERVICE THAT EDUCATES MY CLIENTS IN MAKING SMART, SOUND DECISIONS

I WANT TO CONTINUALLY LIFT THE BAR ON THE PROFESSIONALISM IN OUR INDUSTRY

LEAH ANDERSON, LEAH ANDERSON & ASSOCIATES

CATHERINE DODD, AUSSIE NEUTRAL BAY Catherine Dodd started her mortgage broking career in 2004 as a mobile mortgage broker with Aussie, after various retail and project roles at Westpac. Now, she is a member of John Symond’s exclusive Chairman’s Club which recognises the top 5% of Aussie’s mortgage brokers, and is set to open her first franchise store in Neutral Bay in April this year.

Dodd discovered she had an interest in the mortgage industry while working at Westpac, when she was able to gain some experience as a home loan manager. However, she decided to become a mortgage broker so she was able to offer consumers more choice when it came to a home loan.

She says her success as a mortgage broker comes down to focusing on providing a service rather than just making a sale.

“It sounds clichéd but I really do care about what is going on in [my client’s] life and work my very hardest to achieve the best outcome. Sometimes that might mean not actually doing business at that time and putting plans in place for when they are ready,” she said.

“I don’t really consider myself to be in a ‘sales’ role, I provide a service that educates my client in making smart, sound, decisions.

“I think that to be successful you need to be adaptable, love dealing with people and have the passion to give clients a better experience than they could have ever imagined so that they can’t help but recommended you.”

After a 25-year career working in various management roles for Westpac, Leah Anderson decided she was done with the rigid structure of the corporate world and started her own mobile mortgage and finance broking business, Leah Anderson & Associates. It was the flexibility and freedom that drew her to the mortgage broking industry.

“Primarily, I wanted to have a job with more flexibility to allow me to spend more time with my family. I was also inspired by friends of mine that had been successful brokers for many years, who were great advocates of the broker role. I wanted to bring my years of experience in the finance world to build my own successful business,” she says.

While building her own broking business has provided Anderson with her fair share of challenges, her fundamental piece of advice for others also wanting to take the plunge is to get active in your community.

“Building a strong network is critical. For many years I have been very active in my local community and with this brings many rewards, especially now to my own business. I set up a local women’s networking group called ‘Port Stephen’s Women In Business’ about five years ago that encourages local women to support each other and provides education via inspiring speakers who share their success. Taking the time and making the effort to contribute to your local community helps raise your profile and build your success.”

MAKING THE EFFORT TO CONTRIBUTE TO YOUR LOCAL COMMUNITY HELPS RAISE YOUR PROFILE AND BUILD YOUR SUCCESS

CHANTAL CUTTER, TRUSTED FINANCE SOLUTIONS

LYNDA HARRIS, GENERAL MANAGER PEOPLE, AUSSIE In her role as general manager people at Aussie Home Loans, Lynda Harris has spent the last 18 years leading the culture, recruitment, and learning and development of Aussie brokers.

While Harris says she’s learnt a lot about the mortgage industry and what it takes to foster successful brokers over her career, the most important industry lesson to remember is to always maintain a customer focus – which means investing in your staff too.

“I’ve learnt having an unwavering customer focus is the cornerstone of success for our industry, and has been for Aussie,” she says.

“We don’t have a product on the shelf; we have people. It’s about the focus on delivering exceptional customer service, but in order to do that there is a critical piece about delivering support and service to our other customers: our brokers.”

If there is one thing Harris could change or implement in the industry right now, she said she would like to raise the industry-wide level of professionalism and education.

“Along with our CEO James Symond, I want to continually lift the bar on the level of professionalism of our industry.

There are still brokers with a Cert IV qualification, but at Aussie a Diploma is our minimum,” she says.

“I would like to think we can lift the qualifications in our industry even further, perhaps even making it available to study in mainstream institutions like universities. I believe this would only contribute to our professionalism and increase our credibility in the eyes of our customers.”

Chantal Cutter, director and senior mortgage broker of Trusted Finance Solutions, jumped ship to become a mortgage broker after more than 12 years working on the lending side of the transaction within both major and nonmajor banks.

“I came to the point where I felt I wanted to build my own brand in which I could truly benefit my clients and introducers by allowing me to research a number of options and banks which provided a much greater experience for all involved, and this was to become a broker,” she says.

While she is new to the broking industry, setting up her business Trusted Finance Solutions just last year, Cutter has already made waves as a rising star within her aggregator, Connective. Cutter says she pins this down to promoting a holistic approach to broking in her business.

“We provide a holistic approach to broking and involve all our clients’ trusted professionals, such as their accountants and financial planners, to formulate the best finance outcome for them.

We do this to ensure that their finances are structured correctly to maximise their positions,” she says.

WE PROVIDE A HOLISTIC APPROACH TO BROKING AND INVOLVE ALL OUR CLIENTS’ TRUSTED PROFESSIONALS

SPECIAL REPORT

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I DON’T LOOK AT WHAT MY CUSTOMERS CAN DO FOR ME. I LOOK AT HOW I CAN SERVE THEM TRACIE PALMER, CORNERSTONE SALES CONSULTING

KELLY CAMERON-TULL, GET REAL FINANCE Despite being one of the top female mortgage brokers in the country – settling over $98m in loans in the 2013/14 year and placing 34th in MPA’s Top 100 Brokers in 2014 – Kelly Cameron-Tull admits she just fell into mortgage broking.

“I had just left NAB, and went to help a lady who lived in a neighbouring street with her finances, as she thought she needed to sell to get herself out of trouble. The agent selling the house referred her to a broker and I attended the meeting to advocate for her. The broker offered me a job and I thought, why not? I really have always enjoyed helping people. It is my first passion in life,” she says.

However, despite falling into mortgage broking after gaining experience in banking, Cameron-Tull says she has never looked back. Her passion for people goes hand-in-hand with mortgage broking, as she describes herself more as a “mentor” for her clients.

“We mentor clients to help them understand finance and create goals, and we teach them about buying and managing and maintaining properties. We inspire our clients, we lead by example and we care. There is a whole lot of love that goes into each person we serve. We give before we receive,” she says.

WE MENTOR CLIENTS TO HELP THEM UNDERSTAND FINANCE

HOLLY BUNDY, BUNDY FINANCIAL SERVICES Holly Bundy spent five years as a senior lending manager with the big four major banks. Working in a branch at Bank of Melbourne, Bundy was faced with a dilemma.

“I could sit in the branch for the next 15 years and move up to management level … [but] I love lending, it really is my passion, and I wanted to evolve that.”

This drove her to go out and set up her own brokerage, Bundy Financial, in 2013. Bundy Financial is now flourishing, mainly offering residential finance but also expanding into commercial and asset lending.

As well as managing the business, Holly also supports the Heart Kids charity, which assists children with heart defects, and the Royal Children’s Hospital in Melbourne, a decision she took after her nephew became ill.

Holly featured in the MPA 2015 Young Guns ranking and was also a finalist for the AMA New Brokerage of the Year award in 2014. Bundy puts her success down to a simple focus on people.

“I think it’s really just my service proposition. I put all my customers at the forefront of everything I do, and by doing that the business comes back to me. I don’t look at what my customers can do for me. I look at how I can serve them.”

Tracie Palmer has over 25 years’ experience in the banking and finance industry, with the last 14 as a mortgage broker.

Previously running one of the most successful LJ Hooker Finance franchises in Australia, Palmer moved on to set up her own award-winning business, Cornerstone.

“I love customer service and helping people realise their dream of home ownership. I really enjoy putting together complex structures and helping to ensure people are financially free by the time they retire.”

Palmer’s passion for educating and helping others also inspired her to diversify her business to incorporate coaching and mentoring programs for new brokers.

“I’m a mentor now as well and I help a lot of brokers around the country, so that’s the next step I suppose, giving back to the industry.”

Palmer has been running her mentoring program for five years now. She says mentoring plays an important part in filling the gap between education and experience.

“I’m on the MFAA council and what we found was that there were a lot of people coming into the industry then they were leaving, just because they were lost and no one was there to help and support. There is a big gap in the industry.”

“I REALLY ENJOY PUTTING TOGETHER COMPLEX STRUCTURES AND HELPING TO ENSURE PEOPLE ARE FINANCIALLY FREE

BY THE TIME THEY RETIRE

YOUNG WOMEN ARE INSPIRED BY THINGS THAT CAPTURE THEIR IMAGINATION AND DREAMS OF WHAT IT IS THAT THEY ULTIMATELY WANT

EDWENA DIXON, PINPOINT FINANCE Edwena Dixon worked in the Higher Education/Government sector for more than nine years while also running two small businesses: a music distribution business and children’s publishing business. Dixon moved out of her career in the higher education sector because she wanted to pursue a passion: enabling young women to achieve their dreams of home ownership.

“You hear many young women who want to buy saying, ‘I can’t do that. I have to wait until I get married,’ and the reality is they can,” Dixon says.

To appeal to the demographic, Dixon has developed a unique approach. She utilises social media, but on platforms many traditional brokers may have overlooked.

“A spend a fair bit of time on Instagram, Pinterest, Facebook and Twitter,” she says. “Young women are inspired by things that capture their imagination and dreams of what it is that they ultimately want. Being able to show them images of beautiful homes is inspiring, and it’s something no one else I know of is doing.”

The strategy is working for Dixon, who managed to win the MFAA NAB Broker Achievement Award for those in the industry less than four years, despite having been in the industry for only one year.

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THERE ARE NO GIMMICKS TO SUCCESS

IF YOU CAN’T PROVIDE THE SERVICE, THEN YOUR CUSTOMERS WILL GET IT FROM SOMEONE ELSE SHARRYN HUGGETT, SHARRYN HUGGETT & ASSOCIATES

TRACEY LEA GILBERT, DIVERSIFI Tracey Lee Gilbert has 27 years in the finance industry. A finalist of multiple awards, she is coowner of Diversifi with Rose De Rossi. Gilbert is an MFAA certified mentor in WA (one of only about 10). She provides full training and support through her mentoring program for new to industry brokers in a range of areas including business development and marketing support.

“I went into mentoring because we are an ageing industry, and I wanted to mentor the younger generation to get into mortgage broking. In my experience, a lot of the younger generation find it quite hard to become a broker,” Gilbert says.

Gilbert says the cost can be prohibitive for young people entering the industry.

“On average it’s about $5,000 to get all the industry body qualifications, the diplomas, professional indemnity insurance and COSL membership.”

With this in mind, Gilbert said her business has taken a unique approach to attracting young talent.

“If it’s the right person for the company, if you could put them on a retainer you would hopefully encourage them, because then they have some income behind them as well as mentoring and support,” she says. “We’ve got three newbies to the industry in our office, and that’s working pretty well.”

I WENT INTO MENTORING BECAUSE WE ARE AN AGEING INDUSTRY AND I WANTED TO MENTOR THE YOUNGER GENERATION

SUSAN TAN, MORTGAGE CHOICE CANBERRA Leaving banking behind, Susan Tan fulfilled her long-term dream of being her own boss and now leads her own Mortgage Choice brokerage in Canberra.

Her biggest hurdle was starting out as a franchisee from scratch and growing her business to the success it is today. What does she enjoy most about broking? That’s easy, Tan says. “First, helping my clients attain their dream of home ownership. Second, the empowerment of being the change I want to see in the industry.” Tan says it’s a sector that ambitious women can thrive in and flex their drive for business to create great companies. “I don’t feel like an outsider, I don’t get awkward remarks, my track-record is respected, and I’m heard when I speak,” says Tan. “It’s a numbers and results driven industry, and that tends to create a level playing field.” Joining Mortgage Choice just last year and having her first child at the same time, Tan says stacking meetings to slash dead time, keeping fit and getting enough rest all keep work and life demands in balance.

“Being a new parent and juggling a business isn’t easy, but it has helped me become incredibly efficient with how I prioritise my time,” says Tan. “There are no gimmicks to success – when you’ve closed a deal, pick up the phone, make more calls, and line up more deals.”

Sharryn has been in finance for 40 years, carving a career in senior banking roles in finance with tenacity and determination.

“I started in finance in 1974, and I was head of lending for 13 years.”

Huggett formerly owned retail stores in Canberra and has always been involved in businesses before branching into broking 18 years ago.

Huggett has an in-depth understanding of residential and commercial lending and is often a guest of CBA’s Women in Commercial summits held in Sydney. She says commercial lending is an important sector for brokers to consider.

“I do believe that brokers need to diversify. They need to give the customer the whole package, particularly with business customers. They want to buy a commercial building, they want to do an overdraft, they want to buy a home and they want to do commercial leasing,” she says.

But Huggett says brokers considering commercial lending should make sure to up-skill appropriately.

“They need to do their training, because it’s very important that once they start to get into commercial that they are an expert in that area.”

Huggett also serves on the FAST advisory council.

“I’m one of the very few women on it. Brokers do need to have a good aggregator behind them, and FAST is a very good aggregator.”

[BROKERS] NEED TO GIVE THE CUSTOMER THE WHOLE PACKAGE, PARTICULARLY WITH BUSINESS CUSTOMERS

SUZY BUTTERWORTH, YELLOW BRICK ROAD WEST END Working as the principal and wealth manager of Yellow Brick Road West End, finance savvy mum Suzy Butterworth has built her own award-winning and fully diversified broking business.

For Butterworth, diversification was a no-brainer. She says it came down to really being able to better provide for her customers’ needs.

“It’s doing them [my clients] a disservice to just sell them a home loan without looking at their whole financial picture. When coming for a home loan, customers usually need a variety of other products from home and contents insurance prior to settlement and then securing adequate life insurance after taking on a new debt,” she says.

“My clients keep coming back because they would be happier to have one point of contact they trust to take care of all their financial needs. If you can’t provide the service, then your customers will get it from someone else. I want to grow my own business so I’d rather not send my customers elsewhere.”

When it comes to being a female broker and business owner in a male dominated industry, she says her female perspective is an advantage.

“Many women are the ones in families running the personal finances, so they often like to go to a female broker because we are more naturally suited to strong empathy and intuitively able to interpret clients’ financial needs.

Women are naturally suited to the industry and can be very successful if they are willing to put in the hard work,” she says.

SPECIAL REPORT

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IF A CLIENT HAS A BAD EXPERIENCE WITH THE WAY THEY’VE BEEN SERVED BY A MORTGAGE BROKER, THEY WOULD PUT ME IN THAT SAME CATEGORY

IT IS AN AMAZING FEELING TO BUILD AND RUN YOUR OWN BUSINESS

NANCY PAPOS, KEY LOANS BELINDA SUGARS, MORTGAGE CHOICE HIGHGATE Owner manager of Mortgage Choice in Highgate, South Australia, Belinda Sugars is not only one of the franchise’s best brokers but also mentors new recruits and is heavily involved in charity. Heading straight into banking at 17, Sugars would go on to gain 20 years’ experience in the industry as well as her two sons. She says when she started out in broking it was a male dominated industry but it has evolved. “Women are now very important players and have earned the respect of the industry by proving they can be as successful as the men.” Sugars was a recent finalist in the MFAA Commonwealth Bank Mortgage Credit Adviser of the Year 2015 but she advises to “work hard and be prepared to sacrifice – don’t hide behind emails and text messages, you need to get out there and network and tell people what you do and how good your offering is and the rewards will surely follow”. Sugars says there will be slow times and times you feel overwhelmed but to adapt to whatever comes your way. “Don’t lose sight of why you started your business and what you had before and it will give you great pleasure and satisfaction when you realise you’re succeeding and the opportunities that have opened up to you.”

DON’T HIDE BEHIND EMAILS AND TEXT MESSAGES. YOU NEED TO GET OUT THERE AND NETWORK

SANDRA ABELA-SPEER, CHOICE HOME LOANS MOONEE PONDS Sandra Abela-Speer is a finance veteran who’s passionate about quality. Abela-Speer has been in the banking and finance industry for more than 30 years. For the last 15 years, she’s been running her own successful Choice Home Loans business in Moonee Ponds, Victoria. Her time in the industry has put her in the perfect position to help young entrants to the industry. “There were a lot of people coming into Choice Home Loans and the way they had been mentored was really lacking in guidance. They could process a loan, but they had no customer service skills and no interview skills. I told Choice that we should be doing this in-house,” she says.

As such, Abela-Speer is beginning the process of helping to mentor new recruits to the Choice Home Loans system. It’s a role she sees as vital to maintaining the quality of mortgage broking.

“I’m part of this entity, and if the client has a bad experience with the way they’ve been served by a mortgage broker, they would put me in the same category.”

Abela-Speer says she’s already taken a young broker on client interviews, showing him how to communicate with borrowers.

“He thought everything had to be rate based, but I told him we needed to make sure first and foremost we were helping the client. That personal touch is where you understand your client’s needs.”

Thirteen years ago Nancy Papos entered the broking industry, inspired by her friend who had created a successful career and a leading voice for herself in the mortgage industry.

Thirteen years later and Papos herself has not only created her own voice in the industry – by founding her own mortgage business, Key Loans – but she still remains deeply passionate about helping people.

“I absolutely love helping and educating my clients about our industry – from somebody wanting to purchase a house, to a savvy investor wanting to purchase their next project,” she says.

“Personally, I am not in it for the short term and ensure that I am with them [my clients], every step of their financial journey. That is what excites me about broking and encourages me to get out of bed in the morning – I enjoy helping people.”

It is this passion for guiding people through their financial journey that Papos says has been her secret to success as a broker, helping her to build a strong referral network – including a unique relationship with a large sports management company.

“I have built credibility with their clients over the years and often find young footballers call me, asking me for guidance. My value proposition as a broker is the fact that I share a genuine concern for all my clients, treating them as individuals as opposed to another number,” she says.

“As you would know in sport, such as the NRL, some elite players are on a large contract from a young age – so education and guidance is a big point of difference in my business.”

EDUCATION AND GUIDANCE IS A BIG POINT OF DIFFERENCE IN MY BUSINESS

MARDEE THOMAS, 1ST STREET Mardee Thomas of 1st Street continues to be one of the most awarded female mortgage brokers in the country, taking home the AMA Broker of the Year award for productivity in 2014. With 10 years in the game, Thomas has been recognised time and again for her excellence within the finance industry and as a consistent role model for best practice broking.

“As a mother of two, work-life balance is incredibly important – as a broker you can have flexible hours to suit your lifestyle,” says Thomas. She strikes a good balance between the two by improving efficiency, starting the day early, maintaining leisure activities and making home a place you want to be. Thomas says as a working mother, many of her customers are of similar style and she can relate to them.

“I have found a lot of new avenues to promote myself, ie social media, mothers’ groups – this has proved a great source of referrals.”

Thomas says she feels blessed that in her experience there has been no gender bias in the industry. “For me, now working as an independent brand, it is an amazing feeling to build and run your own business with endless opportunities for growth, expansion and building a saleable asset.”

INDUSTRY SPOTLIGHT

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22

Specialist lending needs special outlook Brokers need to shift their perspective in order to offer solutions for specialist clients, a lender has said

T AT TIMES, THE BROKER TENDS TO MAKE A PREJUDGEMENT. ALL THEY NEED TO DO IS OFFER THE CLIENT THE SOLUTION

Royden D’Vaz, National Sales Manager, Bluestone

he term ‘low-doc lending’ often seems to conjure images of pre-GFC excess and the sort of fast and loose practices that precipitated the housing crash and eventual economic collapse in the United States. But low-doc as it existed pre-GFC no longer exists.

Instead, it has been replaced with a system of rigorous checks and serviceability measures that, though different from prime lending, are no less exhaustive. Furthermore, the term ‘low-doc’ is often used as a synonym for specialist lending.

Bluestone national sales manager Royden D’Vaz pointed out that this is a misnomer, as well as an oversimplification of a varied sector.

“The low-doc term seems to have a stigma attached to it, but specialist lending or non-conforming lending is not just limited to the self-employed borrower. Self-employed borrowers are the ones who use low-doc loans, but I prefer to see it as self-employed people who can self-certify income, or PAYG or any other type of employee who has had a significant event in the past and who now has trouble getting a mortgage. If you’re looking at it in the true definition, low-doc or selfcertifying doesn’t encapsulate the whole industry,” D’Vaz says.

Nevertheless, ‘low-doc’ tends to evoke an immediate response from brokers. D’Vaz says specialist lending in general tends to be viewed a certain way by brokers, and that this perception often isn’t shared by consumers.

“You know what the biggest challenge is for us? It’s not the customer. It’s the broker’s mindset of what they do day in and day out, which is a prime loan at a low rate.

Often the broker says, ‘I’m not going to offer my customer that rate’, whereas all the customer wants is a solution,” he says.

Brokers falling victim to this mindset could be serving as a roadblock to finding a solution for clients, D’Vaz suggested.

“What we find is the gatekeepers are the brokers,” he says. “At times, the broker tends to make a

brokernews.com.au

23

GROWING MARKET A Moody’s study last year found Australia was at the forefront of global growth in the non-conforming market, with lenders issuing $3bn worth of nonconforming loans in the 18 months to August 2014

“A lot of it is around managing client expectations and letting them know it’s not a life sentence. It’s also selling the repayments, because customers often don’t make the correlation between rate and repayments and often the repayment is not that much higher.”

A HUGE OPPORTUNITY

Source: Moody’s

prejudgement. All they need to do is offer the client the solution.”

For a client looking for a solution, a specialist product could put them in a much better position, D’Vaz says.

While brokers may have a visceral reaction to higher-than-prime rates, D’Vaz says it’s worth noting that a specialist loan could still find the borrower paying less.

“The client just wants to get a solution, and more often than not they have a mortgage, a high interest personal loan and a high interest credit card. Doing a consolidation of all that a little higher than the normal mortgage rate more often than not puts them in a better situation,” D’Vaz says.

Some brokers may also fear NCCP ramifications should clients default on specialist loans. But D’Vaz says these fears are unfounded, given the rigour with which specialist deals are assessed.

“I think a lot of brokers have some trepidation as well, because to a certain extent they’re concerned about what would happen if a client defaults. But that couldn’t be further from the truth, because the due diligence on these loans is not around a scorecard. Each loan is judged on its own merits. If we considered a loan not to be suitable for the clients, we wouldn’t do it. We have to apply a big spotlight on compliance. What we do is very highly focused on making sure each loan is compliant, and brokers needn’t be nervous about anything,” he says.

For some brokers, acting as a

IF WE CONSIDERED A LOAN NOT TO BE SUITABLE FOR THE CLIENTS, WE WOULDN'T DO IT

barrier to specialist lending solutions is not a conscious decision, D’Vaz indicated. It’s not so much that brokers are shutting down specialist transactions; it’s that many fail to even consider a specialist solution in the first place.

“It’s not a case of them shutting it down; it’s that they don’t even recognise it when the clients are sitting in front of them. They don’t get more information. It’s more than having the deal in front of them and saying no. It’s at the other end of the scale where they don’t even try to get more information,” D’Vaz says.

WALKING CUSTOMERS THROUGH THE DEAL

But ultimately, as D’Vaz says, clients are looking for a solution. And rather than be told that nothing can be done for them, D’Vaz says clients wanted to be shown a way forward. The first step in this is identifying clients who need a specialist solution, D’Vaz says.

“Our presentation is all about showing brokers how to position these types of loans. Clients don’t walk into your office and say, ‘Can I have a specialist loan?’ They walk in with a problem that needs to be solved,” he says.

The next step is guiding customers through a plan to repair their credit, D’Vaz says. The eventual goal of specialist products is to move clients to prime loans, he suggests. As such, brokers have to reassure clients that this goal is attainable.

“These types of loans have to be sold. You have to walk the customer through it. You have to be the counsellor and the coach, and let them know that whatever it is that put them in the market for a specialist loan is temporary, and give them a plan of how you’re going to bring them back to prime,” he says.

D’Vaz says it was also important to demonstrate to clients that higher rates don’t equal onerous repayments.

And, once again, it’s vital to point out to clients that the higher rates are temporary. This helps put clients more at ease with specialist products, he says.

In addition to helping clients who would otherwise find themselves without a solution, D’Vaz says specialist solutions can help brokers create stickier clients.

“Our BDMs are very attuned to pointing out to brokers that this is a huge opportunity. This is like an annuity type of income where you can put your customer into a loan in the specialist area, clean up their credit and then rewrite them in 18 months to two years. They definitely have to view this as a two-fold revenue stream,” he says.

And D’Vaz says opportunities in the specialist market were growing as more consumers and brokers become aware of the solutions available.

“I see a huge lift in profile and awareness of what’s available in this market,” he says.

As the opportunity in the market grows, so have the fortunes of specialist lenders. Bluestone exited the non-conforming lending market during the GFC, and re-entered in 2013. Since then, D’Vaz says the lender has been greeted with positive feedback and growing business.

“We’re on track to have our biggest month ever. Little by little we’re chipping away at the market and returning to the atmosphere preGFC. The brand is extremely strong, and the feedback from brokers is that they’re glad to see us back,” he says.

For brokers looking to take advantage of the opportunity, D’Vaz says there were a few tips to keep in mind.

“You do definitely have to provide customers with options. You do have to provide them with a solution. You do definitely have to manage clients’ expectations and have to provide them a plan so the client understands this is only temporary while they’re cleaning up their credit,” he says.

Conversely, D’Vaz says there were some attitudes and practices brokers should make certain to eschew.

“Don’t prejudge the client. Don’t pre-empt what the response from the client would be, and don’t make the decision for the client.”

Most importantly, D’Vaz says brokers should reassure clients that they are not defined by their circumstances. Likewise, he says brokers should not view specialist clients solely through the prism of their credit circumstances.

“People with bad credit are not bad people.”

BY THE NUMBERS Since 2000 Bluestone has originated over

$5BN

worth of loans

for more than

22,000 customers

and completed a total of

20 securitisations in both Australia and New Zealand

Source: Bluestone

FINANCIAL SERVICES 24

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SPECIALIST LENDER WINS INTERNATIONAL MORTGAGE AWARD

FINANCE COMPANY SLAPPED WITH FINE OVER MISLEADING ADS A Gold Coast-based financial planning and property management company has had to pay thousands in penalties to ASIC for false or misleading advertising about home loans.

Equanimity Concepts ran advertisements about financing options for home loans on their website, on YouTube, in in-flight magazines for Qantas, Jetstar and Virgin, and in police journals for more than two years.

However, ASIC has said that these advertisements could have misled consumers into thinking that if they borrowed with Equanimity, they would be helped to repay their home loan in a reduced timeframe without incurring further debt. For example, one line read, “Pay off your 25-year home loan in less than 5 years.”

In November 2014, Equanimity entered into an enforceable undertaking with ASIC, but in further regulatory action over the matter, ASIC has now issued the company with three infringement notices of $10,200 each. Thus, Equanimity has had to pay a total of $30,600 in penalties to the regulator.

ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws. The payment of an infringement notice is not an admission of a contravention of the NCCP.

FAST FACT 77.3% Satisfaction rating for self-managed super funds, compared to 59% for industry funds and 56.3% for retail funds Source: Roy Morgan

Housing investment shines in GDP result

T

he latest ABS figures on GDP show new home construction is a key positive, strengthening other parts of the economy.

The growth pulse of the Australian economy experienced a modest slowdown at the end of 2014 according to latest ABS figures on Gross Domestic Product, said the Housing Industry Association (HIA).

HIA chief economist Harley Dale says although the annual rate of growth of the Australian economy slowed in the December 2014 quarter, it wasn’t outside expectations.

“Clearly, the aggregate situation is one of a relatively sluggish economy,” Dale said.

He said annual growth slowed from 2.7% to 2.5% at the end of last year, while the annualised rate of growth improved slightly from 1.4% to 2.0%.

“It’s important to recognise the good news and the new dwelling investment sector is part of that,” Dale said, referring to its growth by 5.3% in the December 2014 quarter and 12.4% in the 2014 calendar year.

“The strength in national new home construction has fed through to other parts of the economy – household consumption, for instance, would be weaker if not for a strong new housing sector.”

“The divergence in economic conditions across states and territories is again clearly evident in today’s update on the nation’s economic growth,” said Dale.

Specialist lender La Trobe Financial has become the first ever lender to win a prestigious international mortgage award for three consecutive years.

La Trobe has again been awarded the Excellence in Mortgage Fund performance – Asia Pacific at the International Alternative Investment Review Awards in Hong Kong. Winners were chosen from a short list selected by over 50,000 investors globally, following review by a judging panel.

La Trobe Financial’s president and CEO Greg O’Neill said the reason La Trobe has taken the top spot is because of the strength of its operations, its reliability and its expertise in managing other people’s money.

“I am delighted that we have been recognised again for being relied upon in all economic climates.

It has been good business sense to thrive in markets where many global giants have fallen, proving that being solid is far more important than being big.”

The Pooled Mortgages Option of the La Trobe Financial mortgage fund has also recently been awarded a superior 4¼ star rating by SQM Research.

This is the highest ever rating awarded in the mortgage fund sector by SQM. SQM’s managing director, Louis Christopher, in releasing the report stated, “[t]he rating reflects SQM Research’s continued faith in the Fund’s skilled and experienced investment team. Moreover, the Fund has been able to record strong outperformance to its stated benchmark and the broader peer group over the year…

The Fund has also continued to record strong growth in funds under management, recording 44.5% growth over the year to August 2014.”

a

INSURER SLAPPED WITH ASIC FINE

AAMI has been ordered to pay over $20,000 in penalties after two ASIC infringement notices, it has been announced.

The insurer, which is owned by Suncorp Group, ran a series of advertisements online and on television for their Flexi-Premium program which claimed customers could save “an average of $357 off your new policy”, according to a statement from the regulator.

ASIC noted that the savings related to different AAMI products rather than a comparison with another company which would generate the savings if a customer switched to AAMI. ASIC said that the adverts “did not adequately convey that AAMI customers would need to choose the maximum level of excess in preference to the minimum level of excess to achieve the specified dollar savings. Based on AAMI’s analysis of a sample of their own customers, AAMI was aware that most customers did not choose the maximum excess”.

In a statement, AAMI stressed that all fines had been paid and the adverts had now concluded.

ONE YEAR ON 26

ONE YEAR ON What a difference a year makes … or not. Australian Broker reflects on the punditry, news and trends that made headlines 12 months ago Australian Broker Online, March 2014

Could the RBA cap LVRs?

In 2013, New Zealand’s Reserve Bank enacted LVR limits on home lending.

Following this, the Reserve Bank last year said it was considering the use of similar macroprudential tools to cool off a surging housing market. The board noted rising housing prices and household borrowing were expected from the monetary easing, but while these factors help support residential building activity, they also could encourage speculative activity in the housing market.

What’s happened since?

Thus far the talk of macroprudential tools appears to have been sabre rattling on behalf of the RBA. The Reserve Bank shocked with a cut to the official cash rate this year, in spite of a rising housing market. While macroprudential tools have remained a theme in the RBA’s rhetoric of late, there’s been no sign that the Bank is actually gearing up to pull the trigger.

ASIC reviews its penalties ASIC last year said it would undertake a review of its penalties as they had not been comprehensively reviewed for over a decade and, in many cases, did not meet community expectations. In comparison to other Australian regulators, the regulator said the maximum civil penalties available to ASIC were lower than those available to other regulators and are fixed amounts, not multiples of the financial benefits obtained from wrongdoing.

brokernews.com.au

Taxing investors sends the wrong message

F

oreign investors wishing to buy real estate in Australia could find themselves hit with hefty application fees under proposals being considered by the Australian Government. The Options Paper would see foreign investors charged a $5,000 application fee for a property valued under $1m and $10,000 for properties valued over $1m, which will then increase by $10,000 for each $1m in value. Previously, there were no fees for foreign investors. Real Estate Institute of NSW president Malcolm Gunning says the Government is sending the wrong message through the proposals.

“We think the Prime Minister is grandstanding to a certain extent. We think it’s a reaction to public sentiment. It sends an interesting message.

It says, ‘We’re going to tax you because of local sentiment.’ We think it probably sends a bit of the wrong message. We are open for business and we do welcome investment, but what we need to do is curtail the illegal practice. I’m not sure really if it’s a strong enough message,” he said.

Gunning said the message should have been that wrongdoers will be punished, rather than taxing those who have done nothing wrong.

Foreign investment is an important driver of the Australian property economy, and Gunning said in NSW it is driving a construction boom.

“The NSW economy is really around the construction industry. The foreign investment is underpinning our construction boom. To put it in perspective, last year the NSW Government had a $1bn budget windfall from property taxes,” Gunning said.

What’s happened since?

A constant theme the past year for ASIC has been its perceived lack of harsh penalties. The regulator has complained publicly that the penalties available to it are not stiff enough to provide a deterrent, even going so far as to claim that the lax penalties made Australia a “paradise” for white collar criminals. In spite of this, ASIC successfully prosecuted 30 people last year for financial crimes.

For the full interview, head to www.brokernews.com.au/tv

FORUM 27

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ASIC wants ability to ban products The regulator has said it wants to have a say on bank product design to protect consumers

A

SIC chairman Peter Kell recently told a workshop held by the Centre for International Finance and Regulation that the power to intervene in banks’ product design and marketing would allow the watchdog to address systemic issues rather than focusing on individual banks and transactions.

GC said ASIC was overstepping its bounds, given banks were taking the risk on their products.

“This is going too far. ASIC don’t lend the money. The banks do, and it’s the banks who take the risk not the consumers. If ASIC want to control the banks, they can fund the money to be lent out. Stay out of it, ASIC. You have absolutely no idea. The unintended consequences could be more harmful.”

Really? questioned if ASIC had the necessary expertise to understand the products.

“Same group who when licensing came out, had staff who said they had never heard of ‘low doc’ or of ‘non-resident lending’.”

QEDRisk claimed the watchdog had enough on its plate without taking on more powers.

“This is absolutely ridiculous. Why does ASIC constantly feel the need to legislate specific issues when it already has the powers to control the issue in existing legislation?

They already don’t have enough resources to do their existing job properly. Why would they want to create more work for themselves?”

Peter suggested ASIC draw on some industry expertise to bolster their ranks.

“ASIC needs to hire some people who understand banking and lending before their powers are extended to cover products. There is a huge number of retired ex bankers and brokers out there who would jump at the chance to stay in the industry. ASIC would then at least understand what they are talking about and work on the existing issues before looking for new ones. APRA should adopt the policy as well as some of their recent statements indicate they don’t have a clue either.”

And Marty suggested that all the panic was misdirected, as it was unlikely ASIC would take on lending products.

“Wake up. They are not talking about lending products as we use them. They are talking about derivatives like contracts for difference and hybrid instruments sold to consumers as safe when [they are] not.”

AUSTRALIAN BROKER READER POLL

SHOULD FIRST HOME BUYERS BE ABLE TO ACCESS THEIR SUPER FOR A HOUSE DEPOSIT?

32% NO

55% YES

11%

UNSURE

ASIC PUTS PAYDAY LENDERS ON NOTICE ASIC recently said payday lenders were falling short of their obligations under NCCP, and put the industry on notice to clean up its compliance. One reader said targeting payday loans was wellintentioned, but misguided.

“Here’s what’s ridiculous: well-meaning officials and activists trying to understand payday loans with a creditcard mentality. These are short-term loans, they’re not paid off over a year or with monthly payments like a credit card is, anyone who takes out these loans understands this. People use these loans specifically because they don’t have the luxury of a credit card with a nice, politically-correct APR. It’s also ridiculous that even with one or even two jobs, some folks still need loans like these to make ends meet.

And instead of addressing the need for a living wage, politicians would rather scrutinise the loans people sometimes need to get by.”

Mat Smith on 17/03/2015 at 10:12

LET FHBs ACCESS SUPER The HIA has supported a suggestion

by Treasurer Joe Hockey to allow first home buyers to access their superannuation to buy a first home.

Papery on 12/03/2015 at 10:53AM “All this will do is push property prices up. Watch the spruikers and marketeers start rubbing their dirty little hands together. There is too much inherent risk.”

What do you think? Leave your comments at brokernews.com.au

PEOPLE 28

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Diary of a WA broker Husband and wife team Phillip and Natalie Barton share their experience opening up a brand new Aussie franchise and beginning their foray into mortgage broking

E

very broker’s experience is different, but brokers can still learn from the journeys of their peers. With that in mind, Australian Broker will be presenting a new feature detailing the challenges of breaking into the mortgage broking industry. Husband and wife Phillip and Natalie Barton recently opened their Aussie Home Loans franchise in Warwick, WA. This is their story.

“We now finally feel like fullyfledged business owners.

So, our first six months of trading now draws to a close, a period full of anticipation and excitement coupled with some trepidation and a little fear of what was to come. Every waking moment during the planning and construction phase of the store was occupied with questions of how to drive our own business, where would our client base come from, just when would we have our very first walk-in client and when would we employ our receptionist and first broker?

My wife and I had been career bank fodder for more years than we care to remember, and first decided to take the step of becoming contracted mobile mortgage brokers with Aussie. After enjoying our first few years, the natural evolution of this role meant that we identified that the real opportunity in mortgage broking would be to own a retail store, and what better way to do so than as a franchise under the leading mortgage broking brand in Australia.

As proud parents of a freshly painted, newly designed and polished store, both my wife and I opened on day one in eager anticipation of the hordes of clients bursting our doors

I WISH I HAD EMBARKED ON THIS ENDEAVOUR 10 YEARS AGO

down to seek salvation in a better mortgage lending experience with two highly organised professionals. We quickly realised that to make an absolute success of being selfemployed we needed a strategy, planning, and an open mind when listening to those who offered advice. It simply isn’t enough to open the doors of a flash looking store and expect the masses to be hammering the doors down.

So, six months on and what do we think? I wish I had embarked on this endeavour 10 years ago. As a business, we started off a little green and got by on the benefit of having multiple clients walk through our doors from day one thanks to the brand. Most were good but not all, so you have to keep prospecting for the gold. We had to plan a store opening with 70 clients, business partners and the founder of Aussie, John Symond, in attendance, and without a comprehensive plan in place we wouldn’t have pulled off a wonderfully warm and friendly blessing of our store.

With that in mind we will begin to formulate a strategy in earnest, look for like-minded people and discuss ideas, look for business referral partnerships and approach them with the confidence of having credibility from investing in ourselves. Then deliver. Deliver on service like never before. Offer them something that no bank can provide – accessibility, options, and a trusted second opinion. Make the client feel safe, make them feel special and above all else give them full consideration of what they actually want now and, importantly, in the future.

When I wake in the morning, for the first time in my life I can honestly say I love going to work.”

MOVERS & SHAKERS ■

BLUESTONE ADDS BDM

Non-bank lender Bluestone has appointed a new business development manager to support its South Australian brokers.

Peter Summerton has joined the team as the new South Australian BDM. Summerton has more than 25 years of experience in the finance and banking industry, including seven years’ experience in franchise operations in South Australia and the Northern Territory.

Most recently, he held a senior position at Club Financial Services as the national franchise manager. Prior to that, he held roles with Rabobank, Esanda and two major banks, giving him a very broad and diversified knowledge of the finance industry.

Summerton is also no stranger to Bluestone, having previously worked as a state sales manager for almost five years.

But most importantly, having been a broker himself, Summerton says he understands what is important to brokers and what it will take to help their brokers be successful.

brokernews.com.au

IN FOCUS

A

ustralian Broker sister publication MPA recently held its second annual Non-major Bank Roundtable. Leaders from Suncorp, Bankwest, ME Bank, AMP, and Bendigo and Adelaide Bank discussed the future of the non-major sector and the mortgage broking industry.

CAUGHT ON CAMERA 29

INSIDER 30

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Ditching the commute like money in the bank Workers who don’t have to commute are so much happier that researchers have actually put a price on it

O

ne of the perks of being a broker is the ability to work from wherever you want. And brokers should evidently rejoice, because a new study has found the morning commute can be seriously draining.

So-called “happiness researcher” and National Geographic fellow Dan Beuttner took it upon himself to quantify just how much happier a person would be if they cut out their commute.

The answer? About $40,000 happier.

“If you can cut out an hour-long commute each way out of your life, it’s the [happiness] equivalent of making an extra $40,000 a year,” insists Beuttner. “The top two things we hate most on

a day-to-day basis are: No.1 – housework; and No.2 – the daily commute in our cars,” he explained. “It’s an easy way for us to get happier. Move closer to your place of work.”

Beuttner’s conclusion comes as the result of a five-year study on residents living in some of the world’s happiest places, including Denmark, Singapore, Mexico and California.

He says the keys to happiness lie in fundamental, permanent changes to the way we live but asserted that a person’s daily commute has a real impact on their mental wellbeing.

Other surveys have shown a more modest figure – saying the average person would give up a 10% raise if they were able to work two or three days from home.

HE’S INJURING HER WITH THAT BODY, I JUST KNOW IT Make room, Meghan Trainor –“It’s all about that bass” for 1980s pop icon Rick Springfield, too.

The Jessie’s Girl singer recently escaped legal action and hefty payouts from his insurer after a Liverpool, New York concert goer sued him, claiming his rear end collided with her head and left her unconscious and “out of her senses” for between 10 and 30 minutes.

For evidence, Vicki Calcagno submitted a close-up photo of Springfield’s behind – a picture she took just before it hit her at a 2004 concert. In addition to the initial loss of consciousness, Calcagno claimed the incident left her temporarily disabled.

Now, however, a New York Supreme Court jury found Springfield “not negligent” in the case. They arrived at the verdict in less than an hour, perhaps aided by the fact that Calcagno admitted in court that she attended a Cyndi Lauper concert a week after she was bowled over by Springfield’s rear end.

The 45-year-old plaintiff also conceded that it may not have been Springfield’s derriere that hit her, but a “hard object in his butt region” – perhaps a microphone pack.

During the trial, Calcagno was escorted in by a man and woman, each of whom supported her as she “mov[ed] slowly” and “clutched her head in distress following cross-examination,” according to a Syracuse.com report.

Springfield, meanwhile, was silent through much of the court proceedings and paused to take a photo with fans as he walked into the courtroom.

Calcagno filed her initial lawsuit in 2007.

FINANCIAL SERVICES 24

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