Media Statements

The Finance brokers Association of Australia (FBAA) has called for standardised documentation around service level agreements to speed up loan discharges for borrowers wanting to change lenders.

FBAA managing director Peter White AM says brokers are increasingly reporting that banks are taking 14 to 30 days to finalise discharge documents, even after many approaches and requests.

“This appears to be an intentional ploy by the banks that I believe is based on them attempting to cushion their monthly bottom line but also to buy time so that their staff can continue to reach out to clients and try and retain them with incentives.”

He said banks must realise that they will pick up loans just like they lose them, and the more they delay and disadvantage customers the less likely those customers will ever return.

“I’d suggest that if a bank is experiencing a major outflow of loans then maybe they need to consider taking a look at their products and evaluating if they are meeting the needs of the borrowing marketplace.”

Decades ago it took around 30 minutes under a manual process to write up loan discharges and around three days for the entire process to be completed and Certificate of Title to be issued, according to the industry veteran.

The solution, Mr White explained, is to create better service level agreements which “in this day and age should be a no-brainer, as all requirements by lenders are largely the same.”

He says universal, standardised loan discharge agreements, loan application forms and privacy act forms should all be available in today’s marketplace.

“When we have platforms like PEXA creating universal e-settlements as well as the likes of Green ID and others, there are no real barriers to make these universal forms a reality.”

Borrowers lured into low fixed interest rates by banks “trying to buy business” may regret their decision unless they also carefully examine the variable rate product of the lender, according to the Finance Brokers Association of Australia (FBAA).

FBAA managing director Peter White AM says while fixed rates can be the best option, brokers should ensure that clients understand “caveat emptor”, or “let the buyer beware”.

He said the big banks have the resources to offer lower fixed rates which look attractive, yet when it reverts to the variable rate the borrower may find they have a loan that is unsuitable.

“We want to ensure that our clients are not trapped,” he warned.

“Borrowers may eventually find themselves with a variable interest rate that is not the best for their particular circumstances, and they may be prevented from changing lenders due to lender fees, new valuation costs and maybe even LMI insurance.”

He said this is the reason people should use a finance broker, and emphasised the importance of borrowers having access to smaller banks and second tier lenders that offer excellent long-term products.

“Borrowers will never consider these options if they only look at the immediate fixed rate.”

He said while the BID has been briefly deferred, it will come into force and brokers have always had an obligation to ensure loans are not unsuitable.

“Banks have no legal obligation to act in the borrowers best interest and if they can seduce you with a low starting rate they will, and they can whack you later,” he said, adding that the same applies to mortgage websites.

“It is imperative that borrowers obtain a thorough examination of their needs and desires for a mortgage that is not unsuitable for them now but more importantly in the coming years.”

The Finance Brokers Association of Australia (FBAA) says the decision by ASIC to defer the commencement date of the mortgage broker best interest duty (BID) and remuneration reforms was a welcome and necessary move.

However FBAA managing director Peter White AM said he has sought further clarification from ASIC on its statement that it would “continue to work towards releasing final guidance on both reforms in mid-2020.”

“Given the regulatory guide was due in May, we need some clarity from ASIC as to when it will be out, as mid-2020 is subjective.

“Once the guidance is at hand the FBAA will be conducting a series of education and compliance training for implementing BID.”

Mr White said the decision to push back the implementation date is “a credit to not only the work of the FBAA who has been lobbying Government to push this back since last year, but to all the relevant bodies in our industry and to brokers.”

“This has transpired due to the faith and trust our Government has in the broker community and our professionalism and integrity.”

The Finance Brokers Association of Australia (FBAA) says the announcement by the Australian Financial Complaints Authority (AFCA) to extend the post IDR refer back timeframe for complaints by nine days to 30 days is helpful in the current difficult times.

FBAA managing director Peter White AM said this will enable people to manage this process while still dealing with their personal and business challenges during COVID-19.

“It’s good to see that AFCA has been working with their regulator ASIC to be able to do this, and everybody is cooperating to create this outcome,” he said.

A letter to key stakeholders from chief ombudsman David Locke said, “This will allow more time for our members to resolve complaints using their internal dispute resolution practices, and where that can’t be achieved, it will provide them with more time to consult and communicate with their customers, and to locate the necessary documentation and information needed for AFCA to consider the matter.”

The ombudsman said the time extension will come into effect immediately and will initially “operate for six months and will be reviewed and adjusted as appropriate.”

Mr White also revealed that the FBAA has seen a significant reduction in complaints compared to the time of the royal commission.

“The FBAA has always had a very good internal dispute resolution process and we are not even seeing one complaint per month at the moment, which is a credit to the professionalism of our members.”

He said the FBAA recently launched its Broker Support Program (BSP) to help members through this period, “and the ombudsman is doing his part to make things easier.”

With the uncertain market due to the COVID-19 pandemic, finance and mortgage brokers can now add to their income options through a partnership between the Finance Brokers Association of Australia (FBAA) and international money transfer company ‘Send’.

The service provides international transfers for both individuals and businesses at a rate lower than banks, with faster processing, usually next day.

FBAA managing director Peter White AM said brokers are often dealing with clients who need to transfer funds overseas or they may need to transfer money themselves.

“As brokers will be paid a commission, this will assist them and their clients.”

Send co-founder Ian Cragg said he was excited to support FBAA members and their private and SME clients globally.

“Collaborating and working together to help each other in times like this is as important as ever.

“By offering cheaper, faster and better international payments than the banks, Send helps thousands of Australians transfer money more efficiently and cost-effectively.”

He said brokers can promote the service to clients for many reasons, “including assisting an SME to pay a foreign supplier when importing, expats living in Australia, Aussies overseas, and real estate investors.

“An increasing reason at the moment given the current climate are money transfers to support family members around the world who are struggling financially with the COVID-19 outbreak.”

Mr Cragg said the response from brokers to date has been overwhelming.

The FBAA recently announced a broker support package to help members during the current crises, and Mr White appealed to brokers to always be looking for new opportunities to expand.

“We should take advantage of partnerships like this and keep increasing our services.”

The Finance Brokers Association of Australia (FBAA) has today announced the establishment of the FBAA Member Broker Support Program (BSP) as it ramps up efforts to help brokers through the current economic crisis that has resulted from the Coronavirus pandemic.

The BSP freezes any review of FBAA membership fees until after July 2021 and allows members to pay the current fees in instalments. But while these financial benefits are a part of the package, the focus is firmly on helping members maintain strong businesses and in the words of managing director Peter White AM in an email to members, “come out the other side on a ballistic rocket journey to success!”

Mr White said while the entire industry is adapting and has been through many challenges before, he’s conscious that some members are facing difficulties.

“This is a time for the industry to stand together, and the BSP is about caring for our member family both in a business and personal sense.”

The FBAA Member Broker Support Program offers the following for members:

• Membership fee payment plan – pay current fees over three instalments.
• Freeze on review of membership fee increases until after July 2021.
• Collateral assets to help you generate business – a regularly updated package of bespoke videos, blog content and social media content for the use of brokers under the slogan – “Call your broker”.
• Call Your Broker’ Blueprint – a customer support strategy blueprint for brokers to implement within their business right away. It is an industry specialist designed program currently being used.
• Weekly Q&A support – Hosted by Peter White and featuring guests, “Your Voice, An Open Q&A with Whitey” will be online every Thursday at 11:30am.
• New educational opportunities.

To launch the initiative, the FBAA has sent an email to members encouraging them all to stick together.

“This is the start. We are developing other ways to help members, and our number one goal is for brokers to remain strong so that they can not only survive but thrive now and when this is all over,” Mr White said.

The Finance Brokers Association of Australia (FBAA) has moved professional development days (PD) online and created new ways to connect with brokers as the nation enters a ‘no personal contact’ era due to COVID-19.

FBAA managing director Peter White AM, whose travel schedule normally sees him in a different part of the country each week meeting with government ministers, regulators, industry participants and members, is spending his days online working from his home, and says it has its benefits.

“In one way not being able to meet in person is restrictive but the flip side is that less travel gives me the opportunity to talk to more people online,” he said.

“Connection is vital and we have been very proactive to ensure members stay connected to us and to each other.”

The association’s online PD days still operate by state with local moderators and four to six different speakers. Mr White also conducts online meetings with government ministers, staff and the board, and has introduced a new weekly Q&A, where he answers members’ questions live.

“My regular video blogs will continue and of course social media is a great way of communicating too.”

He said it is business as usual for most brokers who are trying to adapt and be more innovative.

FBAA chair Tony Carter has produced a “working from home guide” which will be sent to members next week. It includes practical tips on how to set up a home office, managing your day, planning and goal-setting tools, and health tips.

“It’s definitely a new world right now, and while the industry is adapting as best it can, we must also be aware that some brokers will be hit hard financially. The FBAA’s message to members will always be to contact us if you need support,” Mr White stressed.

Finance and mortgage brokers have been warned to expect an inundation of struggling and distressed clients as the economy plummets in the wake of job losses and business closures.

In a notice to its national membership, the Finance Brokers Association of Australia (FBAA), the peak body representing finance and mortgage brokers, has told brokers that the current Coronavirus pandemic will affect them directly on multiple fronts.

“In over 41 years in this industry I’ve seen many recessions and major issues like the GFC and others, and while the current situation is unprecedented in terms of scale, it’s not difficult to predict many of the effects,” FBAA managing director Peter White AM told members.

While urging brokers to transition to an online model or “be impacted financially”, he said the industry must be ready to guide stressed clients to lenders who can help them in their time of financial hardship.

Mr White also urged brokers to look out for signs that clients might be experiencing mental health issues.

“Remember that people will be worried, particularly at the possibility of losing their family home or business. If you are concerned about the mental health of a client, encourage them to seek help and do anything you practically can to assist them,” he suggested.

However, he said that the flip side for brokers is an increase in new borrowers and those wanting to change lenders as interest rates fall to record lows, housing prices drop and lenders compete for business.

“New home buyers and investors will emerge to take advantage of a weaker market, and we must be able to deal with this at the same time as helping our clients in need. This is important for business viability.”

In an acknowledgement that brokers themselves may struggle over the coming months and even years, he said, “Protect your own health and wellbeing. Practice social distancing and adhere to other recommendations from health authorities. You can’t help clients if you are sick.”

Finance and mortgage brokers must assume the current Coronavirus pandemic will affect them directly on multiple fronts, according to the Finance Brokers Association of Australia (FBAA).

Managing Director Peter White AM said in over 41 years in the industry he’s seen many recessions and major issues including the GFC, and while the current situation is unprecedented in terms of scale, it’s not difficult to predict many of the effects.

“Firstly, every broker must have the technology and knowledge to be able to transition to an online model, and with Skype, Zoom, Face-Time, FB Messenger and numerous other platforms available, this is easy and inexpensive,” he said.

“Brokers who are not prepared to go online will be impacted financially, as less consumers will seek face to face meetings in the current environment.”

Mr White said brokers must expect an inundation of clients struggling as the economy plummets in the wake of job losses and business closures.

“We must be ready to guide our clients to lenders who can help them in their time of financial hardship, therefore it is vital we know what each lender is offering in terms of support.”

However he said that the flip side is an increase in new borrowers and those wanting to change lenders as interest rates fall to record lows, housing prices drop and lenders compete for business.

“New home buyers and investors will emerge to take advantage of a weaker market, and we must be able to deal with this at the same time. Most brokers will need this new business for their own viability.”

He also pointed out that brokers will be dealing with the higher volume of client and consumer needs against a backdrop of concern for their own health and wellbeing.

“Due to the financial, social and emotional value of in particular the family home and small businesses, our industry is on the front line of any economic shift.

“The FBAA will continue to offer professional and personal support to members, and all brokers should be ready now for what this crisis will bring in the coming weeks, months and even years.”

The managing director of the Finance Brokers Association of Australia (FBAA) Peter White AM has called on brokers to check in on each other in the midst of continual negative news.

Pointing to the drought, bushfires and now Coronavirus, Mr White said the media and public conversation has been focused on negativity and disaster for a long time, and brokers are not immune to the mental health effects.

“We know that many brokers have been personally impacted over the past year by these issues, and many have had family members who have struggled.

“The continual cycle of gloom and pessimism from the wider community, sorting out client problems, and the current need for more personal isolation, is not a healthy mix,” he said.”

He labelled finance brokers “a close-knit family” and said it’s time to ask each other, “R U OK?”.

“The FBAA has placed a large emphasis on mental health over many years, because while our members are brokers, first and foremost they are people.”

Mr White said it is clear that our members value the community and support that an industry association offers not only professionally but personally.

“I want every broker to know that we are here for them, but I’d like them to also know that their colleagues are looking out for them.

“There will always be challenges, and we can get though the current season as long as we remember to look after each other.”