Well, what an amazing end to the Financial Year for 2019! I have been involved with the Mortgage Broking Industry for the past 19 years and I know it is fair to say that in the past six months we have seen an unprecedented amount of impactful changes to our industry.
The following major external and internal events that have had an enormous effect on us all as Mortgage Brokers and, in fact, the Loanworx Group.
- The Hayne Banking Royal Commission and the Federal Election
- Changes to the way Mortgage Brokers are Paid
- The New Code of Banking Practice
- The Advisor Australian Broking Awards
- A Great outcome From Networking at the Awards
- The Growth and Awards for the Loanworx Group
- Award Winners Presented at our EOFY Dinner
- Staff Changes for Loanworx Group
- The Announcement of a New Commercial Mentoring Program
The Hayne Banking Royal Commission and the Federal Election
We the mortgage brokers thought our lives were over with the Hayne Royal commission making seventy six recommendations and the one that hit home to the mortgage brokers was that the mortgage brokers should not be paid an upfront and trailing commission but they should introduce a fee for service model and there should be no ongoing trailing commission.
I decided that it was time for me to do something, so I put my hand up, got off the couch and helped our industry fight for our profession. For the first time in my life I joined social media. My children have been so helpful and quick to pick out my many social media mistakes, nonetheless, I am so enjoying learning about this medium. I was also very fortunate and honoured to be chosen to speak on behalf of three aggregation groups and to present our service offering to the press and to the Assistant Minister for Finance the Honourable Zed Seselja at the Housing Industry Forum. At the end of the day, my summary was that the consumer had already voted: – we have won, as we the Mortgage Brokers were introducing 60% of all new money to the lenders. This is an outcome that weighed heavily on both political parties.
The Federal Election was, in short, one of the biggest surprises of the year. How pleased we, as Mortgage Brokers, were with this outcome. The bottom line was that the elected Liberal party advised they would leave the mortgage broking remuneration model as it was and review our service offering in three years.
Changes to the way Mortgage Brokers are Paid
There have been changes to our remuneration model implemented by the Combined Industry Forum (CIF). The result of these changes is that the Mortgage Broker is paid less commission if the client is not utilising all the funds borrowed, for example, if the client has funds placed in an offset account or if the client places their unutilized funds in a redraw account. What a debacle this had been for Mortgage Brokers and the lenders with some lender’s representatives advising us to have “a little chat to our clients”. This, I feel, is so immoral, and I for one would never suggest something to my clients’ that did not benefit them. This saga still goes on and I am trying to do my bit again to help the lenders gain a sensible and consistent approach to this matter.
The New Code of Banking Practice
The code of banking practice which commenced 01/07/2019 has created huge controversy with some lenders asking us, as brokers, to make a psychological assessment of our client’s physiological state of mind. We have had great advice and support here from all aggregators and peak bodies with – hopefully – common sense prevailing. Loanworx has – with the help of one of our Credit Representatives Steven Close from Close Financial Services – adopted a new approach which is on our file note template for your use. This template has been uploaded on the Mr. Mentor Portal for everyone to use.
The Advisor Australian Broking Awards
The Loanworx Group has been recognized in the Advisor Australian Broking Awards 2019 which were on 5th July in Sydney. One of our very own brokers, Eldo Jacob was nominated as a finalist in the Newcomer of the Year Award: Regional Area. This is quite an achievement and if you know Eldo or have met Eldo it is clear to see why he is a finalist. Well done Eldo! The Loanworx Group Mentoring Program was also recognized as a finalist which is also testament to our great Mentoring Team: Melissa Robinson, Geoff McKenna and me Pauline Ryan.
A Great Outcome From Networking at the Awards
Mark Ryan and I represented the Loanworx Group at the Advisor Awards and made some excellent connections, one of which was a new lender introducing a 95% and 100% loan for nurses all professionals who have a degree – with no LMI and at very reasonable rates! I am certainly keen to have this product on our suite of offerings. I will send out more information on this as it comes to hand.
The Growth and Awards for the Loanworx Group
As for the Loanworx Group I can hardly believe the great results we have in this first half of this year
I am so pleased to welcome into our group the following people who are not only outstanding mortgage brokers, but they are all very, very fine people and I feel privileged to have them in our group and would like to formally welcome them to our Group.
Rakshith (Rick) Hedge – Commercial and Business Banking
Brenton Ashbridge –Commercial and Business Banking
Anthony Boyd – Residential Lending
Roger Boland – Commercial and Business Banking
Russell Johnson – Residential Lending
Puspa Wagle Chaulagain – Residential Lending
Award Winners Presented at our EOFY Dinner
On the last Friday of the Financial Year we had a dinner which by the way Melissa there was not enough food – none the less we had a great night and our winners were:
Geoff McKenna: Broker of the Year and Loanworx Hall of Fame Entrant for 15 years with Loanworx
Anthony Boyd: Best Newcomer to the Loanworx Group
Eldo Jacob: Community Spirit Award
Steven Close: Compliance Award – Highest Audit Score
Staff Changes for Loanworx Group
Our staff changes have seen our Compliance Officer Pauline Sia do an outstanding job for Loanworx and has moved on to enjoy a new career in teaching. We thank Pauline for her excellent work. Pauline has been replaced by Jalantha Mallawarachchi who has settled into this very important role and I would like to certainly acknowledge his very good work.
The most impressive change in roles has been for Melissa Robinson who has been promoted to Executive General Manager. This is a well-deserved promotion – Congratulations Melissa we all could not cope without you.
I am delighted to say that the Loanworx Group now has seventeen Credit Representative’s, fifteen Branded Loanworx Brokers and twenty-two Mentees and as a Group we wrote in the last Financial Year over $133,000,000 in Loans. With the enquiry and the interest shown in our service offering for Mortgage Brokers I believe we will grow in this part of the year but only with the right people and the right brokers. With this growth comes change and part of this change will be to standardize a lot of our branding and brokerage offering to the new brokers. As I said the Loanworx Group is growing, lending has become very onerous and difficult but with that it also creates opportunity. I believe the great brokers in our team have the right attitude and will continue to deliver great outcomes to our clients. This is what makes all business grow and I am so honoured to be the CEO of this very fine group of people.
The Announcement of a New Commercial Mentoring Program
Moving forward to the second part of 2019 Financial Year I am so pleased to announce that the Loanworx Mentoring Programme is introducing a Commercial Mentoring Programme and that our team is honoured to have as the lead mentor in this section Neil Lovis who brings a wealth of experience and knowledge to this programme. We plan to launch the programme on the 01/10 2019.
In parting, I would like to share with you one of the most interesting books I have read in the past 6 months a book which is called Useful Belief by Chris Helder. The book costs around $20 and takes approximately 1.5 hours to read. This has been a book that I have found most helpful personally. Until next time, I am sure we will all continue to put our clients first.
CEO Loanworx Group