Industry stalwart weighs in on the issue of blown-out turnaround times
With money markets pricing in an RBA rate rise before 2024, lenders are steering borrowers toward shorter-term financing
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“Banks and lenders need to improve their credit assessment processes to become more efficient and turn deals around more seamlessly” – the words of Top 100 broker and mentor Mario Borg. He told MPA that blown out lender turnaround times are one of many challenges brokers are now facing in the world of finance as FOMO drives buyer activity and brokers navigate the new landscape of Best Interests Duty.
While SLAs remain as long as one month at some banks, lenders continue to put the microscope on loan applications with living expenses remaining a key concern, he said. In addition to this, the frequency of credit policy change has increased the workload for brokers who are also grappling with a heightened level of compliance through BID.
“Lenders need to recognise bottlenecks to improve the overall experience for customers and brokers,” he said. “For example, stop offering cash rebates when turnaround times are already at one month, as this is just adding more fuel to the fire.”
Read more: Does more cashback mean more clawback?
According to Borg, the industry needs to act with a greater level of professionalism and be more process-driven in its approach. While the challenges of the greater lending environment are outside the control of brokers, Borg said there were ways to deal with the difficulty of an increased workload.
“Don’t take shortcuts when it comes to compliance,” he said. “Systems and processes are more important than ever before.”
As are having the right tools and a mentor or coach with a depth of experience “who have the runs on the board,” he added.
“Productivity is most important, stop wasting time on dead leads and learn how to qualify more effectively and more efficiently,” he said. “KPI measurement is also important so that you can track and measure where you’re spending your time and energy.”
Kate McIntyre is an online writer for Mortgage Professional Australia. She has a wealth of experience as a storyteller and journalist for a range of leading media outlets, particularly in real estate, property investing and finance. She loves uncovering the heart behind every story and aims to inspire others through the artful simplicity of well-written words.
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