FMA complaint touted as banks do little to pull back processing times

The frustration levels among advisers are high. Many believe all the banks are doing is trying to incentivise customers to go direct to them and bypass advisers.

The nub of the issue is banks stringing out mortgage application processing times for advisers but giving a fast turnaround – as little as 24 hours – to clients who go direct to their branches.

It has shocked many advisers, particularly as banks were able to process applications much faster when lending was 15-20% higher than it is now and the housing market was moving at a much faster pace.

Mortgages Online founder Hamish Patel says it doesn’t make sense. “There was a time when advisers had access to only one bank, but still gained clients’ trust. There was a time when banks advertised a much better deal if borrowers went direct, and we still gained market share. Then there was a time where advisers were subject to a huge raft of regulations, which changed how they operated, and the adviser channel still grew.”