CBA are doing it tough

[Rolf Latham]

a week or so after announcing a bunch of fee increases (minor in the scheme of things) the margin demons have been at work again.........



Rolf, if you cannot read this email you can view it at: http://lending.cba.com.au/ve/t71au3162v9498R709



Commonwealth Bank
Update Newsletter - All the latest info 2 February 2012


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Change to Settlement Cheque Fee



Currently at settlement customers receive two settlement cheques at no charge with any additional cheques incurring a fee.

Effective Thursday 1 March 2012, the fee for additional settlement cheques will increase from $5.40 to $10.00 each.

Settlements occurring on or after Thursday 1 March 2012 will be charged the new fee of $10.00 for each subsequent cheque after the first 2 free cheques.

Note: If the Consumer Credit Contract Schedule was issued before the 03/02/12 then the fee of $5.40 will be honoured. However if the loan is re-documented on, or after 03/02/12, then the $10.00 fee will apply.



The 'Fees we charge for Consumer Mortgage Lending Products' brochure (ADB51, 003-750) will be updated on CommBroker from Thursday 1 March 2012. A single Settlement Cheque Fee insert will also be available on CommBroker.

Home/Investment Home Loan, Line of Credit Loan Contract Schedules issued on and from Friday 3 February 2012 will be updated to reflect the new fee, effective 1 March 2012.


What you need to do
Please ensure you destroy any existing "Fees we charge for Consumer Mortgage Lending Products' brochures on the 29 February and utiliise the updated brochure from Thursday 1 March 2012. A single Settlement Cheque Fee insert will also be available on Commbroker.



Reminder: Settlement Fee is also changing

As advised in Update 27 January 2012, we are increasing our Settlement Fee from $150 to $200 on and from Friday 3 February 2012.

The current $150 Settlement Fee will apply to loans where documentation is issued prior to Friday 3 February 2012. The new fee of $200 applies for loans where loan documents are issued on and from Friday 3 February 2012.

Why are we increasing the Settlement Fee?
The Bank continually reviews its home loan products, features and services. The Settlement Fee has remained constant since March 2009, and has not kept up with the increasing cost of this service.


Need to know more
For more information talk to Broker Assist on 13 25 88, select Option 3.






Contact Us: Third Party Communications


This email newsletter is for accredited mortgage brokers of Commonwealth Bank of Australia. Update is issued by Third Party Banking, Commonwealth Bank of Australia ABN 48 123 123 124.

To unsubscribe visit: http://lending.cba.com.au/vtu/t71au3162v9498R709

 

[Aaron_C]

Maybe they're increasing it because CBA is the only bank not to send staff offshore...

 

[Rolf Latham]

Maybe they're increasing it because CBA is the only bank not to send staff offshore...

Cough......................


matter of time.


We can no longer have admin staff with 75 k + hold cost, when you can get a similar job done with more care, diligence and gratitude for < 20 % of the cost of a local person.

Fact of life in todays globalising economy, and something our workforce and their "bargaining" representatives need to think real hard about.

Corporates are NOT charities, and even SMEs are now outsourcing core staff functions. I have more than a couple of small business clients that source ALL their "smart labour" from offshore ...........


this is a brave new world, and we can stick our head in the sand and play the "keep australian jobs" game, but I personally believe we lost that battle 20 years ago.


ta

rolf

 

[Aaron_C]

I was saying that in jest - but I think what you say is true. I have seen quite a few friends leave their 9-5 jobs and start their own business at a relatively young age (23-25). The internet and freedom of information is unparalleled these days. Perhaps this is the counter-trend to the outsourcing of job functions - a move to entrepreneurship in Australia?

 

[Andrew_A]

I was saying that in jest - but I think what you say is true. I have seen quite a few friends leave their 9-5 jobs and start their own business at a relatively young age (23-25). The internet and freedom of information is unparalleled these days. Perhaps this is the counter-trend to the outsourcing of job functions - a move to entrepreneurship in Australia?

Goodness me lets hope so as competing on a $ cost is not looking good for us in Australia.

 

[cdawg]

Cough......................

We can no longer have admin staff with 75 k + hold cost, when you can get a similar job done with more care, diligence and gratitude for < 20 % of the cost of a local person.

rolf

as the saying goes. "pay peanuts get monkeys"

 

[RumpledElf]

CBA could save a few more cents by not sending us full-on loan statements for closed loans for a period well after they were closed. I mean really, we don't need to know we have minimum payments of $X00 and interest rate Y% on a loan with balance NIL.

 

[Rolf Latham]

as the saying goes. "pay peanuts get monkeys"

nah..............certainly not the case with these people.

Their staff are as dedicated and focussed and street smart as any local...........


Therein lies an important thing. We make assumptions based on outsourcing, because mots of our experience is due to some organisations have been going for max dollar rtn, rather than balancing the cost vs quality.

Many of us are in for a WAKE up call.

ta

rolf

 

[Peter_Tersteeg]

as the saying goes. "pay peanuts get monkeys"

Many similar roles with other lenders have already been outsourced for years. It's not uncommon for brokers to be talking to a credit officer in Mumbai.

For the most part they're reasonably competant. Assessing a loan application is often a matter of following a strict proceedure and ticking all the boxes. There's a lot to it, but it is usually easily definable.

When things are a bit out of the box it can get interesting. With most lenders I've had no trouble getting the job transfered to someone local with a bit more authority.

Overseas outsourcing is part of the world we live in. It's unfortunate that there'll be job lossess. I went through the same thing in a previous IT role and now I'm much happier for it becuase I was able to adapt.

 

[Jamie M]

It's not uncommon for brokers to be talking to a credit officer in Mumbai.

At 9pm on a Thursday night

Cheers

Jamie

 

[jrc77]

CBA could save a few more cents by not sending us full-on loan statements for closed loans for a period well after they were closed. I mean really, we don't need to know we have minimum payments of $X00 and interest rate Y% on a loan with balance NIL.

They could save a few more pennies by not sending us two copies (one for each joint borrower) of paper statements for each loan account we have - each in a separate statement envelope. 5 loan accounts = 10 separate envelopes all sent to the same address.

I'd be perfectly happy with estatements and saving all that paper.

Jason

 

[Aaron Sice]

so no exit fees, but the affiliated costs to exit will go up $300 total.....!

 

[Lofty]

We interact with quite a large number of SME's and it's amazing how many are using Elance, Odesk, 99 Designs and others to outsource their labour and general business requirements.

An interesting recurring statement from a lot of them is they now refuse to even consider sourcing their requirements in Australia. Interesting times.

Cheers, Paul

 

[cdawg]

Many similar roles with other lenders have already been outsourced for years. It's not uncommon for brokers to be talking to a credit officer in Mumbai.

Bangalore not mumbai

 

[Dazz]

the fee for additional settlement cheques will increase from $5.40 to $10.00 each.

Ouch - 85% jump in price.

Noice if the customer will wear it. Lucky their customers don't shop around.

we are increasing our Settlement Fee from $150 to $200 on and from Friday 3 February 2012. The Settlement Fee has remained constant since March 2009, and has not kept up with the increasing cost of this service.

Ouch - 33% jump in price over 3 years.


Obviously the Banks aren't restricted to some pittance relating to the CPI when it comes to them setting prices.


I reckon they could have doubled both costs again to $ 20 a pop for bank cheques and $ 400 per settlement fee and no-one in Australia would actually change their decision to proceed or not based on the increase.

People seem to go into zombie mode when it comes to these costs....they just open up their wallets and keep on paying. I've never heard of anyone negotiating with the Banks over these fees.....nor anyone at the Bank with the authority to negotiate on their behalf. "Head office said".

 

[Dazz]

as the saying goes. "pay peanuts get monkeys"

That hasn't been my experience working overseas. Some of the best workers, most talented people and very honourable team players have been paid a pittance. A case of "pay peanuts get solid gold"

However, on some Aussie wharves and construction sites, I've come across some union members who look like they are 15 months pregnant, couldn't physically put out if their life literally depended on it, argue at everything and anything, will actively work against the boss' program just to spite management and get paid a kings ransom for doing bigger all. A case of "pay solid gold get monkeys".

 

[cdawg]

definatley dont disagree with you.

If CBA wanted to start saving money they should start cutting middle managment, contractors, people in projects............... the list could go on for awhile.

 

[BMan]

They could save a few more pennies by not sending us two copies (one for each joint borrower) of paper statements for each loan account we have - each in a separate statement envelope. 5 loan accounts = 10 separate envelopes all sent to the same address.

I'd be perfectly happy with estatements and saving all that paper.

Jason

select estatement as your preferred method
most places now give you an option of paper or estatement some even charge extra for paper statements so you go the estatement

 

[AAA]

People seem to go into zombie mode when it comes to these costs....they just open up their wallets and keep on paying. I've never heard of anyone negotiating with the Banks over these fees.....nor anyone at the Bank with the authority to negotiate on their behalf. "Head office said".

Interesting point Dazz. You are correct.
I guess, the only way to negotiate these type of fees which happen at the "end" of the process rather than at the "start" is to keep an eye out for the "total cost".

In saying so, I think would be hard to negotiate on these fees.
Probably better to negotiate on the big ticket items like the interest rate and on-going costs.