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MFAA Prosper : Mortgage and Finance Brief 09
The Credit Provider is Pepper Finance Corporation Limited ABN 51 094 317 647. Terms, conditions, fees and charges apply and are available on request. All applications are subject to Pepper's normal credit criteria. Full terms and conditions will be included in our loan offer. *Paid defaults of up to $500 are acceptable on both the Pepper Flexi Advantage and Pepper Self-Employed Advantage home loans. In addition, any number of defaults or judgments registered 2 years prior to the home loan application, irrespective of whether the defaults or judgments are paid or unpaid, are accepted with the Pepper Flexi Advantage home loan. PEP13353/SYN Call 1800 PEPPER (1800 737 737) or visit pepperonline.com.au Need to consolidate your client's debts into one manageable monthly repayment, refinance their existing home loan, or secure cash out for renovations or business use? A Pepper home loan can help reduce your clients financial stress and leave more in their pockets each month by refinancing all their existing home loan and other debts into one manageable monthly home loan repayment. No limit on the number of debts that can be consolidated Easy refinance of other lenders home loans, including low doc and non-conforming loans Cash out for stated purposes including business use Minor defaults accepted* Both Pepper's Flexi Advantage® and Self-Employed Advantage® home loans o er many great features such as: Approved Finance. Easy As. Key industry figures led an impassioned debate into the issue of broker fees at a recent MFAA lunch in Sydney. Chaired by Fairfax economics journalist Michael Pascoe, the panel comprised Aussie Executive Director James Symond, Advantedge General Manager Broker Platforms Steve Weston, Mortgage Asset Services Director Troy Phillips, and Australian Finance Group NSW/ACT State Manager Chris Slater. Symond said change was the only constant in the finance industry, so brokers should not be concerned about fee for service. "Fee for service is an important part of the future," he said. "It is not going to happen in the next month, six months, or even in the next year, but it is a matter of when, not if. "We are one of the last industries on the planet that does not charge a fee for service. That needs to change. "We need to be able to recruit the best and brightest talent into our profession, so we need new ways to ensure we are getting paid for the value we are adding." Steve Weston agreed with Symond, saying consumers already receive an extremely good level of service. "It's our job to articulate the value of this service," he said. "Many brokers already charge fees very successfully -- let them make their value propositions. Customers will pay for the peace of mind." However, Troy Phillips said the push for fees would encourage the banks to further reduce commissions. "No borrower will pay a fee when they know they can go to a bank and get the same thing for free," he said. "What fee is there left to charge? The banks already charge the customer every fee imaginable. "Investors won't put any capital into the industry if commissions go down any further." Phillips maintained the best way forward for brokers was a collaborative effort to push the banks to increase commissions. Chris Slater also warned against market-wide fee for service, saying the timing wasn't right. "To just say, 'we are going through the NCCP, so now we have to charge a fee for service', is no excuse for slugging the customer with extra costs," he said. "The industry is going to have to go one way or the other on this. "Our brokers are transparent about the fees and commissions they have received." He said the fees could act as a deterrent to attracting the 60% of borrowers who were not using brokers. Fee for service debate rumbles on • For brokers' reaction, turn to page 21 News
Mortgage and Finance Brief 08
Mortgage and Finance Brief 10