I concur with The Captain (B) In the debate about mortgage...

I concur with The Captain (B)


In the debate about mortgage brokers there are some things that should not be overlooked -

1) where would the finance industry be now, without mortgage brokers - dare I say say that borrowers would be paying more for their loans

2) the broking industry has brought in a level of competition which enables borrowers to effectively compare a range of lenders including the smaller players

3) the fact that around half (correct me if I am wrong - could be even higher) of all home loans are initiated through a mortgage broker, is a very strong indication that the general borrowing public is comfortable in dealing with the broking community

4) in the "good old days" a borrower would go to a bank and be offered only one lender option - to push borrowers back towards that approach is archaic.

5) the broking industry is a business and employs a huge number of people, all of whom will be affected if major changes are forced upon the industry

6) to savage the role of the mortgage broker suggests that the banks will readily handle increased DIRECT loan enquiry. To do so would require increased lending approval staffing by banks, both in their branches and loan approval departments. In the current environment of staff cuts by some of the major players this is unlikely to happen and the time taken for a loan approval can only increase. A hidden element is that it could result in the lenders passing any increase in their costs, on to the borrower - certainly something difficult for a government to control.

7) it is worth remembering that the commission arrangements which currently exist were not initially of the making of the broking industry, but rather the banking industry. The lenders pay the commissions, agree to trails etc, all in the name of ensuring they are on the panel of lenders used by the brokers.

8) a simplistic approach going forward could be that say 10% of any commissions paid to a broker must go to the borrower..................................................


all IMHO