The Finance Brokers Association of Australia (FBAA) says it is concerned that some banks are attempting to stop mortgage brokers using certain automated rate tracking and repricing systems to analyse their back books, in order to prevent existing customers from accessing lower rates.

FBAA managing director Peter White AM said the FBAA is aware that some banks are threatening brokers with de-accreditation if they use certain tracking programs.

“They appear to be claiming it is a privacy issue, and while this may be legitimate in some cases, I don’t accept this is the entire reason or even the reason at all in some cases,” he said.

“If banks are using this as another way to increase profits, it would be quite unconscionable as it means customers are being intentionally disadvantaged.”

Mr White said mortgage brokers have a responsibility to work in the best interests of their clients, and part of this commitment is to review rates.

“Any attempt to outlaw automated rate tracking and repricing systems prevents mortgage brokers from properly servicing their customers.

“We all know that many banks love rate creep for their existing clients while they offer great incentives to new customers.

“But when back book pricing isn’t being reviewed it’s the customer who loses out, and over the long term the amount could be significant.”

He said brokers should be embracing technology because manual tracking is not as effective, and “the banks know this.”

Banks are sending the wrong message to customers and instead should be embracing price reviews, according to Mr White.

“Lenders must understand that doing the right thing generates customers for life.”

He said some banks only try and look after customers when they receive a discharge authority.

“Time and time again we see banks offering better rates only when the customer is considering, or starts the process of, refinancing.”

“I’d urge banks to instead encourage back book reviews by whatever way is best for borrowers and the most professionally proficient for the broker, and maybe the customer won’t need to consider refinancing.”