PSIS eyes return to brokers
More a year after the PSIS wound down its partnership with Allied Mortgage Brokers to sell its home loans, it's eyeing up a return to the space within the next 12 months.
Friday, July 10th 2009, 7:22AM
by Paul McBeth
The mutual that evolved from the Public Service Investment Society ended the deal in May last year after the volatility of the property market began to weigh on its margins and eroded the viability of the partnership. It reinstated the use of brokers for existing clients in July, but has only just renewed its interest in setting up a permanent arrangement.
"Margins have improved now and the economy is picking up" which gives the mutual confidence to start taking the steps to review its position on brokers, said David Thomson, manager of business relationships at PSIS.
While nothing has been finalised, any future arrangement "will be a decentralised approach matching our lending model" where customers won't have to go through a Wellington office to get a broker-led mortgage approved, he said.
The mutual had retained a good relationship with brokers, and it's considering whether or not to restrict any partnership to an exclusive group of brokers or aggregators.
PSIS signed up mortgage broking aggregator Allied Mortgage Brokers to sell home loan products through its member brokers in 2004.
Paul is a staff writer for Good Returns based in Wellington.
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