Managing director of national broking franchise says delays through the broker channel are unacceptable
Blown out lender SLAs continue to be a pain point for brokers, according to MoneyQuest managing director Michael Russell (pictured). Speaking with MPA, Russell said that while the mortgage industry continued to grow and evolve in ways both exciting and opportunistic, lender SLAs remained “subject to inconsistent and uncontrollable blowouts.”
“One pain point for brokers and our customers is the issue of blown out SLA turnaround times,” he said. “This needs urgent attention. It is unacceptable in the year 2021 that lenders can maintain service levels in the branches, yet applications submitted through the broker channel are experiencing extended delays.”
Russell first raised this issue with MPA back in April, when he outlined the mental anguish that brokers were experiencing due to the SLA delays at different lenders. While many lenders blamed the impact of the pandemic on processing times, Russell said “the majority had made no inroads whatsoever in the past 20 years to provide brokers with consistent SLAs that they and their customers can rely upon.”
Read more: "Lenders aren’t doing enough about SLAs"
While blown out SLAs have been causing stress and anxiety for brokers and their clients for quite some time, lockdown has proven a difficult time for many in the industry because of two main challenges.
“Firstly, brokers are faced with the challenge of keeping their motivation levels high, to ensure that they continue to capitalise on opportunities as they arise,” said Russell.
While lockdowns in Sydney and Melbourne have meant less properties on the market, pent-up demand has led to a competitive environment where homes are selling like hotcakes and buyers are under pressure to get finance approved in time. In addition to new purchase opportunities currently in the market, record low interest rates and a cashback environment have led to a surge in refinance activity over recent months. According to the Australian Bureau of Statistics, the value of refinancing skyrocketed 60% year over year in July, hitting an all-time high of $17.2 billion.
According to head of finance and wealth, Katherine Keenan, “this reflected borrowers seeking out lower interest rates, particularly for fixed-rate loans, and cashback deals across a large number of major and non-major banks.”
Despite this surge, research commissioned by Aussie revealed that while 60% of Australian mortgage holders weren’t confident they had a good home loan deal, only one in five had refinanced their mortgage over the past 12 months, showing just how strong the opportunities for brokers were in the current market.
Read more: Why customers aren’t refinancing despite record low interest rates
The second major challenge related to lockdown that brokers have been facing is balancing homeschooling with their professional responsibilities, said Russell.
“This is causing a great deal of stress,” he said.
In order to overcome these challenges, Russell said it was important for brokers to stick together.
“It is imperative for brokers to stay connected with their peers and to participate in every professional development session hosted by their group,” he said. “This will help to enhance motivation, reduce feelings of isolation, and foster a sense of reassurance and support.”
He also encouraged brokers to reach out and ask for help if they needed it.
“It is important for brokers with school-aged children to accept that work hours may be compromised as a result of home schooling, and that this is OK,” he said. “Focusing on quality work hours rather than quantity may help to ease the pressure.”
In a recent interview, MoneyQuest Geelong broker Sarah Maslen told MPA that homeschooling was a challenge that both her and her clients shared. While she has found it difficult as a single mother to balance a fulltime job with homeschooling and running a household, Maslen said it had also been a bonding experience.
Russell said it was important for brokers to focus on their own wellbeing as well as that of their loved ones during such a challenging environment.
“During these difficult times, it is essential that brokers prioritise their families, and support their partners and children as much as they can,” he said.
While industry figures have been cautioning against burnout for a long time due to the SLA crisis and a heated property market, recent lockdowns in different parts of the country have taken a toll on the mental health of brokers – making it essential that brokers look out for themselves and each other.
