2nd LEAD Recruitment
Time for a clean-up
With the latest housing boom mortgage brokers are in demand; the industry is seeking desirable operators, writes Jenny Keown
I
t’s official. A mortgage broker perceived to be hot job, once again. As always happens in the boom times, more people than usual are attracted to the industry, and this can have its upsides and downsides. As Mike Pero chief executive Mike Collins says with the current regulatory framework there are low barriers to entry and exit from the mortgage borrowing market. “I believe this will mean that the industry will attract people worthy and not so desirable,” he says. His thoughts are echoed by NZ Financial Services deputy chairman Bruce Patten who says there is “definitely a concern” in the sector that substandard people are being brought in to meet the demand. “We need to clean it up somewhat,” he says.
020 WWW.TMMONLINE.NZ
The growth Collins says it has experienced significant volume with results up 30% up on last year. Over the last six months, Mike Pero has hired 10 advisers, with half based in the regions including Hamilton, Tauranga, Palmerston North and Dunedin, driven by renewed vigour in the regions part of the halo effect from the Auckland housing market. Mortgage Link & Insurance Link managing director Josh Bronkhorst says a low interest rate environment and a sizzling property market has created a lot more interest in the mortgage business and mortgage advertising. Mortgage Link has contracted 30 plus new advisers in the last year. While bulk of the growth has been in Auckland, it has hired new advisers in Christchurch, Nelson, Wellington, Rotorua, Tauranga, Hamilton, Warkworth and Whangarei.
“The demand for and the opportunity for mortgage advisers will continue to grow in the regions in line with migration to the regions and the associated increased demand for lending,” Bronkhorst says. Global Financial Services mortgage team leader and co-director Aseem Agarwal says it has increased its staff from six to 30 people since 2012. The company is writing $900 million to $1 billion in mortgages, up from $200m in 2012, driven by customers increasing their investment portfolio, and a concerted marketing effort by the firm. There appears to be a growth in the number of insurance advisers and financial planners who are taking on mortgage brokers. Bronkhorst says: “We’ve seen a lot of interest from insurance advisers keen to add mortgage advising to their existing businesses, but also a lot of interest from new industry people,” he says.
