CBA clawback

Question to brokers. Has anyone had success with having a clawback reversed with the CBA? My customer paid the mortgage out on his PPOR from proceeds from the sale of a hobby farm. (god bless him)
The loan went for 10 months and the clawback was $2,500.
I spoke to the CBA BDM but he doesn't think it will happen.
I think it is disgraceful that you can spend a lot of money and time to get the approval (three companires involved with this one) and not receive even a lousy trail.
 
Question to brokers. Has anyone had success with having a clawback reversed with the CBA? My customer paid the mortgage out on his PPOR from proceeds from the sale of a hobby farm. (god bless him)
The loan went for 10 months and the clawback was $2,500.
I spoke to the CBA BDM but he doesn't think it will happen.
I think it is disgraceful that you can spend a lot of money and time to get the approval (three companires involved with this one) and not receive even a lousy trail.

So the client refinanced to CBA for 10 months, knowing he intended to sell another asset and pay-out the debt?

<channels CBA CFO>
I think it's disgraceful that we had to do the approval, set-up and settle the loan and haven't earned enough margin to cover our costs.
 
He didn't refinance the property to CBA, he purchased a PPOR. I don't know if he had any intentions to sell his farm at time of application or whether his accountant talked him into it.
 
if the business model doesn't work then walk. it's like real estate sales - worst business model ever but some people manage to make it work
 
Hate to say it is a fact of the industry.

Doing a deal for a client at the moment who i know intends to sell his current PPOR within the next 6 months and will then pay out the entire new mortgage and we will have all of our commission clawed back.

In saying that of course i think he will come back to me do do the next 6/7 investment properties so you do it.

Called customer service. Not everything has to have a price attached to it.
 
I don't like your chances it getting anywhere with the clawback sorry to say.
Touch wood I've only ever had 3 of 'em. 1 client with far too much money who decided to payoff in 11 months (only 50% clawback in those days) and 2 divorces within 12 months. Again only 50% on both. These days plenty of lenders have >50% on the 1st 12 months. It's a fact of life and allowances need to be made with your cashflow in case one of these bobs its ugly head up now and then.
 
We explain clawbacks is in depth to all clients upfront and its disclosed in the finance broking agreements as well that if we get clawed back we have the option of sending them an invoice - depending on the circumstances of course.

That was brought in about 2 years ago. Usually people are pretty understanding that you're operating a business at the end of the day and you cant run a business at a loss.
 
Do you guys reckon this is the place for discussing this stuff?

your comment suggests something that needs to be hidden. My awsome powers of observation say that your a broker. At a guess..not the most transparent.

Cheers for the info everyone. Its let me see that brokers are less the evil i thought.
 
claudiaj

Referring to 'is this the place to discuss...

Au contraire! I really love to hear this kind of 'backroom' talk. I deal with lenders a lot and its a great opportunity to understand what makes it tick for them. I find it advantageous. Its an insight. So don't let me stop you!
 
Same here! I've never heard the word clawback. How long to brokers get a % from the loan - for the entire term, a fixed period or until it's sold again.

Another question. My PPOR mortgage was done by a broker in late 2007. I'm about to refinance from St G to NAB. Does that mean that the broker will be affected?
 
Thats like asking a magician how they "did that"...

Some brokers dont want us to know how these things go down for obvious reasons. Some consumers cant handle how there money is allocated. Thats why you see people complain about REA's commissions.

I know i do. Now that i know how the cookie crumbles im less inclined (tho not totally for professional reason) to use REA's. Comparing brokers to REA's is like spitting in someones face tho so sorry for comparing you guys to them :p:)

A broker has miles of unmistakeable value IMO. a REA has none. again only IMO :)
 
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your comment suggests something that needs to be hidden. My awsome powers of observation say that your a broker. At a guess..not the most transparent.

Cheers for the info everyone. Its let me see that brokers are less the evil i thought.

You got me. I am the sneakiest broker ever to sneak through this forum ...
 
Same here! I've never heard the word clawback. How long to brokers get a % from the loan - for the entire term, a fixed period or until it's sold again.

Another question. My PPOR mortgage was done by a broker in late 2007. I'm about to refinance from St G to NAB. Does that mean that the broker will be affected?

He shouldnt as CBs usually only last 2 years from the date of settlement.
St George is less i'm pretty sure.
 
Why not discuss these things here? Our clients should know how we are dictated to by the Banks. They should CERTAINLY know they they cut our commissions by 30-40% and did NOT pass this onto clients. Customers CERTAINLY know about the record profits the Banks are announcing and the interest rate margin increases. They should also know that we get clawback and the bank charges the client "break" fees and the broker gets none of this.

I am pushing my Aggregator the the MFAA ( for those that are not brokers the Mortgage Finance Association Australia, not that anyone knows who they are!)
for bank products to be wholesale only without hidden commissions. That way pretty transparent to the customer.
 
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