tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, August 13th, 9:41AM

News

rss
Latest Headlines

PAA vs the banks: Round one

The simmering tension between banks and brokers erupted after the PAA came out swinging for mortgage advisers, but did they deliver a knock-out blow?

Wednesday, June 28th 2017, 7:56AM

Brokers can't live without banks and it seems more and more banks need brokers. While three big banks, ANZ, ASB and Westpac, have dominated the mortgage adviser space for many years that has all changed in recent times.

For instance, BNZ realised it needed third party distribution, and the smaller banks have all ramped up their activity in the third party space. It's really a no-brainer as around 35-40% of all home loans are originated by mortgage advisers.

It's no secret that brokers often grumble about banks and how they are treated. While there is talk of partnerships, brokers often feel like they are treated as the poor cousins, compared to banks' branch networks and their mobile mortgage managers.

The tension was smashed on Friday when the Professional Advisers Association sent an email to members more than firing a shot across the bows of banks - one in particular.

In it the PAA Board makes some pretty strong allegations saying: "This type of disingenuous business tactic must be seen for what it is and be stopped. The attempt by some banks to dismantle the adviser channel, that has taken decades to build up, demonstrates poor integrity and indecisive business strategy."

Unfortunately the problem hasn't been defined.

While they have received some kudos for finally standing up for its mortgage adviser members, it has also muddied the waters. The PAA hasn't said which bank it considers to be the culprit, nor has it spelt out what the actual problem is. 

By inference it is tarring all the banks with the same brush.

It is unclear how much communication there has been between the PAA and the bank; if any at all. 

Mortgage advice is built on partnerships between advisers and lenders. 

As Mortgage Link managing director Josh Bronkhorst said at his group's conference this morning the relation between banks and advisers is like a marriage. "You only have to be happy most of the time."

Talking though issues and problems is the best way to get a resolution.

QUESTION: What are your thoughts on the PAA's tactics? Is it doing the right thing? Should it name and shame the bank it has taken aim at? Send our comments to philip@tmmonline.nz

 

 

Tags: PAA

« RFAs need to sit up and take noteBanks quietly seething »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • It starts with governance
    “@Adviser1 this is part of the discussion we need to have as an industry. It is also part of the message we have with the...”
    24 hours ago by JPHale
  • It starts with governance
    “Thanks Gavin, appreciate your comments. So by engaging a compliance consultant and having the necessary policies, procedures...”
    1 day ago by Adviser1
  • It starts with governance
    “Hi Adviser 1 -I don't think peer review will cut the mustard. There is more to it than someone having a look at you do and...”
    2 days ago by gavin austin adviser business compliance
  • It starts with governance
    “Who offers a governance solution for a one man adviser business or is adviser peer review the way to go? Cheers...”
    2 days ago by Adviser1
  • It starts with governance
    “Well said as usual Russell, you’re right governance is one of the things that has been missing from the discussion and...”
    2 days ago by JPHale
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 5.50 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 ▼3.85 ▼3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.55 2.65 2.79
Kainga Ora 4.43 ▼2.93 ▼3.07 ▼3.24
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.45 2.99 3.35
SBS Bank 4.54 ▼3.05 3.19 ▼3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - ▼2.55 2.69 ▼2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 ▼2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 ▼3.29
TSB Bank 5.34 3.35 3.49 3.79
TSB Special 4.54 2.55 2.69 2.99
Wairarapa Building Society 4.99 3.65 3.69 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.05 3.13 3.12

Last updated: 11 August 2020 8:24am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com