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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: NAB bid to stop meltdown in mortgage broker business

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NAB bid to stop meltdown in mortgage broker business

Australian Financial Review Apr 15, 2019 12.01am

Duncan Hughes


National Australia Bank has lost the support of the country's largest mortgage broking group, with its market share among borrowers seeking to refinance more than halving from 8.5 per cent to less than 4 per cent, forcing it to begin offering sweeteners to shore up support.

Brokers working for Australian Finance Group claim NAB's variable interest rate hike in January, the time it is taking to approve loans, senior management shakeout and fallout from the Hayne royal commission are behind the dramatic drop in the number of loans being referred. AFG says NAB has lost market share across fixed interest, investor, homeowner and refinancing over the past 12 months.

NAB disputes the concerns, claiming it is committed to its existing customers, has "strongly improved" customer retention, and is the best-performing major bank for home loan market share growth over the past 12 months.

But a NAB spokesman blamed recent loan application losses on "many factors", including the controversial hike in variable rates months in January, five months after its rivals after former CEO Andrew Thorburn pledged they would be held to restore trust.

"Recent performance of application flows can be attributed to many factors, including the timing of our recent pricing change which was months after the other major lenders," a NAB spokesman said.

According to AFG analysis expected to be published this week, NAB's market share among its brokers for all types of mortgages has slipped from about 9 per cent to 5 per cent in the past 12 months.

Brokers say the slump is due to more complexity and time taken to get NAB loans approved, higher mortgage rates and tougher terms and conditions. They claim the bank is increasingly risk averse, whereas competitors are providing more imaginative marketing responses to attract nervous borrowers during a major market downturn.

NAB's share of investor loans has fallen from about 9 per cent to 4 per cent and its market share of fixed rate loans has plunged from 20 per cent to 7 per cent.

“They have appeared to have pulled back,” said AFG chief executive David Bailey. AFG is the nation's largest network of mortgage brokers, with a combined loan book of about $1.7 billion.

Mortgage brokers blame the slide on better turn around times for applications and lower rates – particularly from Commonwealth Bank and Westpac, the nation’s two largest lenders – and smaller lenders seeking to build market share.

On Monday, NAB will launch a $2000 cash back for customers refinancing their loans. It is also offering a first home buyer special fixed rate of 3.69 per cent and claims an average approval rate of five days for 80 per cent of its applications.

According to the latest Australian Prudential Regulation Authority data, NAB recorded the strongest growth in housing lending among the majors over the past year and half year, with loans up 4.4 per cent and 3.9 per cent respectively. In the past month however, growth slowed to an annualised rate of 1.1 per cent, behind Commonwealth Bank and Westpac.

But NAB is still growing faster than ANZ, whose loan growth contracted by 2.3 per cent in the past month on an annualised basis, the APRA data shows.

It has been 12 tumultuous months for NAB during which time Mr Thorburn and chairman Ken Henry resigned and a boardroom clean-out was started amid attempts to transform the culture.

AFG analysis shows CBA and Westpac, and their subsidiaries, have made gains over all mortgage categories, particularly fixed rate and refinancing.

CBA and Westpac account for about 50 per cent of the nation's total mortgage market, NAB and ANZ about 15 per cent each, and dozens of other lenders compete for the remainder. Mortgage brokers account for about 50 per cent of new loans.

Westpac is believed to have increased market share with AFG's brokers by about 45 per cent to 14 per cent, while CBA is up about 13 per cent to 14.6 per cent.

Westpac this weekend launched changes to its fixed-rate range matching recent cuts from the CBA from two to five years for owner-occupiers and investors paying principal and interest.

Westpac and its subsidiaries have increased their share of AFG's fixed rate business from about 12 per cent to nearly 30 per cent.

Westpac has also nearly doubled its share of AFG's mortgage investor market from about 11 per cent to more than 19 per cent, while its share of refinancing has grown from around 9 per cent to more than 17 per cent.

CBA has increased its share of AFG's mortgage business from 13 per cent to more than 14 per cent.

NAB has also increased wholesale mortgage funding rates by 15 basis points, triggering rises across dozens of products offered by mortgage brokers and aggregators.

The bank said it was the first wholesale rate rise since August 2017 and was prompted by "sustained elevated funding cost pressures".

The wholesale rate increases were announced by Advantedge, which is the bank's wholesale funder and distributor of white-label loans, which are home-branded loans, a similar marketing strategy to home-branded products found in supermarkets.

White-label home loans are available through more than 85 per cent of mortgage brokers and distributed under the brands of mortgage aggregators and mortgage managers. They are an alternative to loans from major bank.

The mortgage aggregators offering Advantedge products include PLAN, FAST, Choice Aggregation Services, Australian Finance Group, Connective Smartline Astute, Loan Market and LJ Hooker Home Loans.


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