MB doesn't want to deal with the big 4 banks

[Papps]

To all the MB's out there, I have been speaking to a MB about financing a comm loan. I currently have dealings with CBA and have asked him to investigate the other big 3. On several occassions he has suggested 2nd tier banks for the resi loans and has come back and said he would prefer not to deal with the big banks as their service is not as good. He has suggested Bankwest for the comm loan. My response was that this may compromise me in the future as CBA owns Bankwest now and defeats the purpose of spreading the loans. My question to the MB's is - does my MB have a valid point or is this just MB speak for "I am not listed with the big 4 so I don't get commission". Has anybody else had dealings like this.

 

[Petal]

All I know about the big 4 FWIW is that they are "hardballing" now and taking their time with approvals/non approvals as they feel they are back to the old monopoly ways of yesteryear. Also from what I understand they are treating MB's badly because they are not writing as many loans (as they don't have as much to lend presently) so they are usuing their own people more, so the poor old MB's deals are being put to the bottom of the bunch.

Now this is what I have been hearing, be interested in others views.

 

[Qlds007]

Far from it i think majority of MB's are dealing more with the Big 5/6 banks than ever before.

I now some smaller MB are taking a stand against the majors because they dont have 4 star rating or premier status when it comes to processing but at the end of the day the most important thing is what is best for the client and not you the broker.

In saying this the overall processing by the majors on the whole is a disgrace but as long as the client is aware of the time frames i would look at these options every time.

 

[Bill.M.]

What are the current turnaround times brokers are experiencing atm?

Dealing directly with the bank, approval generally won't exceed 24-48 hours at the moment.

Bill

 

[Qlds007]

Bill

Hate to say mate this statement is clearly incorrect

Dealing directly with the bank, approval generally won't exceed 24-48 hours at the moment.

 

[The Y-man]

What are the current turnaround times brokers are experiencing atm?

Dealing directly with the bank, approval generally won't exceed 24-48 hours at the moment.

Bill

Hi Bill,

Interested to hear if this is approval (subject to this that other) to go an look at a property, or approval for finance (i.e. loan offer document) after you have signed contract?

The Y-man

 

[Bill.M.]

Hi Richard,

I work for the bank & am not experiencing any delays with my applications unless it's in a regional area and the valuer takes a week to get out there.

But most applications, especially if no exception to policy is required are being approved within 1-2days.

I handed in my own application to my finance manager at the bank on Wednesday morning & received a phone call from him advising it has been unconditionally approved on Friday.

Of course it would differ depending on the applicant/scenario but I'm certain a broker couldn't have turned around approval that quickly for me.

Cheers mate,

Bill

 

[Bill.M.]

Hi Bill,

Interested to hear if this is approval (subject to this that other) to go an look at a property, or approval for finance (i.e. loan offer document) after you have signed contract?

The Y-man

I had signed the contract - no valuation was required because they relied on the purchase price/electronic assessment as the val - and no exception to policy was required so there was no need for it to be referred to a credit analyst for a manual decision.

A pre-approval can usually be issued within hours, sometimes before the client leaves my office. Again, this depends if the application meets lending guidelines and the approval will be subject to a number of conditions being satisfied.


So can someone clarify for me how long it is taking broker applications to be approved?

 

[Qlds007]

The odd exception maybe but this is not the norm.

Did a deal last week where we lodged it Monday 9.00am and on Tuesday PM had the letter of offer and mortgage documents emailed to us. Client settled on Friday this week. That could not have been done by any branch directly.

Approvals can be done by most brokers instananously online if every box is ticked.

Not sure which Bank you work for but channel conflict is certainly something Brokers complain about quiet rightly.

 

[Bradsdad]

Hi Richard,

I work for the bank & am not experiencing any delays with my applications unless it's in a regional area and the valuer takes a week to get out there.

But most applications, especially if no exception to policy is required are being approved within 1-2days.

I handed in my own application to my finance manager at the bank on Wednesday morning & received a phone call from him advising it has been unconditionally approved on Friday.

Of course it would differ depending on the applicant/scenario but I'm certain a broker couldn't have turned around approval that quickly for me.

Cheers mate,

Bill

Would you mind disclosing what bank Bill? (sorry if I missed it elsewhere). I'm sure many members on here would like to know when someone works for one of the lending institutions to clear up any potential bias form posts (not suggesting you have had any).

I tend to agree that the branch networks can be a little faster than the broker networks. My wife works for ANZ and she tends to be faster by 2-3 days on mosts occasions. On the other hand she's limited on what she has to offer. I guess I see the main benifit of a client using a MB (an experienced one) rather than approaching their lender direct is that a MB is comparing a wide suite of products whereas a branch/lending manager of a particular bank has only 3-5 products at their disposal.
Another drawback of approaching a branch direct is that many of the staff who deal with loans have little experience. Before you correct me on this, I can assure you that out of 16 branches in her district my wife would be one of 2-3 who have 10+ years finance experience (she has double this) with at least 5 that I know with 2-5 years. I also has around 15 years with ANZ and have seen it 1st hand. This isn't to say that there aren't MB's out there with under 5 years in finance but at least a client can base their choice of MB on this.
I also have 3 freinds in senior positions who are with the CBA. They are in a similar position.


In answer to your question in regards to turnaround times, there would be probably 1-2 lenders who could turnaround a "vanilla'/non LMI deal is under 48 hours. Another couple 4-5 days and the majority of others within 6-8 days. there are however 3-4 who are working at 10+ days. NAB at present at terrible but due to some internal changes there I would expect them to catch up within the next week or 2 as volumes will surely decrease.


Regards
Steve

 

[Bradsdad]

Sorry Papps for the above reply as I realise it was hijacking your thread. I just realised this wasn't the initial topic.

I'm actually finding that I'm using the majors just as much as previous if not a little more. Without knowing the specifics of your deal I'd hate to say wether I agreed with your MB or not. I would hate to think that your MB is being swayed by commissions as they sure won't last long in this game.
I tend to find that over 50% of clients who approach me to refinance end up staying where they are. Unless there's either a major service or policy issue that is affecting your flexability it's rare that there is a need (not including clients with non-bank lenders or non-conforming).


Regards
Steve

 

[Spectre]

Papps

Brokers may lean to BW due to they pay well and still do a bit higher lending margins.

They look good on the surface but what they actually come up with at the end are two different stories. One primary thing from your end is to get the val done upfront so you know exactly your security position and to make sure the val is assignable to whichever bank you nominate.

As an example, we just did a $1.5M commercial shed purchase in n/brissie

Max lvr anz 65
max lvr cba 70 w/10% unsecured - so 80% all up (noting the 10% was repayable in 5 years)
max lvr wbc 70 w/10% unsecured - but the 10 was repayable in 2 yrs.
max lvr bw 70
max lvr adaide bank 75

But this is a commercial thread... not a resi thread, as with resi I'd admit branches are probably faster to go thru for res but doubt that would be the case for commercial.

Oh, and also if the MB isnt accredited with another bank outside of BW for commercial then likely he doesnt have a clue what hes doing.

 

[grossreal]

hi all
the issue at the moment is not the lvrs even thou they are lower but funders wanting to fund the project.
comm is very different to resi
as the funders are still holding alot of comm debt they don't want or they have funded funds in particular areas they don't want
so they are very unhappy in different areas and hence the delays
also the vals on comm are all over the place so
time is a big issue for comm at the moment but so is vals
yes banks are taking alot longer to approve comm from my view

 

[tubs]

Unless your MB has a very good reason for not wanting to deal with the big 4, such as your loan wont get approved or the delays will cause your deal to go through, then you need to remember who the customer is, and who's calling the shots.

If they just couldnt be bothered dealing with them, its time for a new MB.

 

[Bradsdad]

Unless your MB has a very good reason for not wanting to deal with the big 4, such as your loan wont get approved or the delays will cause your deal to go through, then you need to remember who the customer is, and who's calling the shots.

If they just couldnt be bothered dealing with them, its time for a new MB.

You expect us to earn our keep?


Only kidding, I was going to say the same thing but didn't want to offend anyone (in case the MB is a member)

 

[troyhunt]

TOn several occassions he has suggested 2nd tier banks for the resi loans and has come back and said he would prefer not to deal with the big banks

Have you asked him how his commissions compare? Seriously.

 

[Papps]

Thanks for the replies everyone. CBA are happy to lend me 90% more than I am looking for. I don't wont to stretch my comm borrowings at the moment. I see this as an opportunity to spread my loans to another bank as I will use an unencumbered comm as security. Looks like I will being doing the leg work. Whilst it will take longer I will get the outcome I want

 

[deejay]

Our brokered CBA loan took four weeks from application to documents. (Our broker now tells people to go to non-traditional lenders, even at a premium, if time is an issue).

Meanwhile, our relationship banking loans at CBA both took under a week. We hooked up with the relationship banking service because we didn't want a repeat performance.

Both examples were in the last three months.

 

[mortgageman]

Hi Papps,

Without knowing what your broker's motives are, I can say that at the smaller commercial level (say under $2m), smaller lenders outside the big 4, such as BankWest and IMB, will often have a superior product. This is nothing to do with commissions as the big 4 (with the exception of NAB) are all still paying good commissions for commercial deals, but are at present not particularly aggressive with their pricing. Your worry about diversification is another matter. Currently BankWest is still being run independantly of CBA, but I suppose ineviteably there will be some merging of credit policies down the line. Also, turnaround times in the commercial space would be roughly the same through a branch or through a broker, however there is no doubt residential deals are approved quicker through a branch at the moment.

Kind Regards,

Cameron Perry
Perry Financial Strategies

 

[Bill-M]

Would you mind disclosing what bank Bill? (sorry if I missed it elsewhere). I'm sure many members on here would like to know when someone works for one of the lending institutions to clear up any potential bias form posts (not suggesting you have had any).

I tend to agree that the branch networks can be a little faster than the broker networks. My wife works for ANZ and she tends to be faster by 2-3 days on mosts occasions. On the other hand she's limited on what she has to offer. I guess I see the main benifit of a client using a MB (an experienced one) rather than approaching their lender direct is that a MB is comparing a wide suite of products whereas a branch/lending manager of a particular bank has only 3-5 products at their disposal.
Another drawback of approaching a branch direct is that many of the staff who deal with loans have little experience. Before you correct me on this, I can assure you that out of 16 branches in her district my wife would be one of 2-3 who have 10+ years finance experience (she has double this) with at least 5 that I know with 2-5 years. I also has around 15 years with ANZ and have seen it 1st hand. This isn't to say that there aren't MB's out there with under 5 years in finance but at least a client can base their choice of MB on this.
I also have 3 freinds in senior positions who are with the CBA. They are in a similar position.


In answer to your question in regards to turnaround times, there would be probably 1-2 lenders who could turnaround a "vanilla'/non LMI deal is under 48 hours. Another couple 4-5 days and the majority of others within 6-8 days. there are however 3-4 who are working at 10+ days. NAB at present at terrible but due to some internal changes there I would expect them to catch up within the next week or 2 as volumes will surely decrease.


Regards
Steve

Sorry Steve. Should have clarified sooner - Westpac.