Finding the right mentor model is crucial, says one industry leader
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Australia’s mentoring programs have been put under the spotlight over the past few months, ever since the CBA decided last December to tighten the qualifications of mortgage brokers it conducts business with. Among other things, the bank decided to only do business with brokers who have had at least two years’ experience writing residential loans.
Brokers who write CBA loans also need to hold at least a Diploma of Finance and Mortgage Broking Management; be a current member of either the MFAA or the FBAA; and be a direct credit representative or an employee of an approved aggregator/head group or an Australian credit licence holder
In an interview with MPA, Specialist Finance Group executive Blake Buchahan said it’s natural for education and entry requirements to come under review, as the industry is scrutinised “more and more.” He said the implementation of mentor guidelines is a positive step for the industry especially now, as some big banks have begun to change their own mentor policy. One major bank actually no longer accepts mentors who don't reside in the same state as the mentee.
"[T]he banks are reviewing the value a new broker brings to their organization, and tweaking their mentor program is a lever they can pull to see how it affects the volume, value, and quality of deals that come through their gates," Buchahan explained.
"It's about finding the model that suits you," Buchanan said. He believes that having resources at one's fingertips via a well-resourced website or CRM is a great start. To be able to reach one's mentor anytime is a must, but mentors have their own businesses to run. They might not be able to always respond on time. Buchahan suggests looking for one who keeps a backup.
Buchahan and his team worked a way to solve the problem by digitising the process. "By making it CRM-driven, mentees can review, comment and ultimately approve the loan and move it to the next stages anywhere in the world," he said.
