*Some lenders don't have sufficient scale to set up the resources to handle third party (broker) applications and loan maintenence.
*Some lenders dont think broker introduced clients are "loyal" enough once they are on the books and therfore dont think third party introduced loans are "worth" the trouble as above.
*Some lenders dont trust brokers and think either arrears rates will be higher and or they will get too much of a particularl type of loan ie loans that fits with whatever policy niche that lender has which could be 97% loans or low doc loans or whatever.
*Some lenders think it is cheaper to not use brokers (i think, hand on my heart they are incorrect, I think brokers are a far more cost effective way to do business especially if the lender wants scale and wants it quickly. Aust Post anyone??)
Reasons lenders do use brokers is simple they are not in the main fight if they dont.
*Some lenders dont think broker introduced clients are "loyal" enough once they are on the books and therfore dont think third party introduced loans are "worth" the trouble as above.
*Some lenders dont trust brokers and think either arrears rates will be higher and or they will get too much of a particularl type of loan ie loans that fits with whatever policy niche that lender has which could be 97% loans or low doc loans or whatever.
*Some lenders think it is cheaper to not use brokers (i think, hand on my heart they are incorrect, I think brokers are a far more cost effective way to do business especially if the lender wants scale and wants it quickly. Aust Post anyone??)
Reasons lenders do use brokers is simple they are not in the main fight if they dont.
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