FAMNZ calls for adviser unity to address bank practices
The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) has urged mortgage advisers to unite against “anti-competitive bank practices” that it claims are harming both advisers and consumers.
FAMNZ country manager Leigh Hodgetts (pictured above) criticised the extended wait times for adviser-submitted home loan applications compared to direct applications, calling the situation “unacceptable.”
“More than half of all consumers choose to use a mortgage adviser, and it appears that lenders are taking these consumers for granted,” Hodgetts said.
She revealed plans to meet with senior bank officials to address these issues and recent Commerce Commission recommendations, which she says are adding to industry confusion.
Banks respond to complaints about delays
In response to concerns over delays, three banks — ANZ, ASB, and Westpac — previously told NZ Adviser that mortgage application turnaround times can vary based on complexity, existing application volumes, and missing necessary information.
The banks emphasised their efforts to restore normal service levels during a high-demand period and stated their intention to maintain equal service standards across both direct and adviser channels.
Despite these assurances, FAMNZ remains concerned about the impact of these delays on consumers and advisers alike.
Mortgage advisers must unite to protect the industry
Hodgetts called on advisers to join FAMNZ, emphasising the importance of collective action to challenge these practices.
“There is no more time for apathy when it comes to protecting our industry. It’s time for action,” she said.
Hodgetts warned that a lack of membership in professional bodies weakens the sector’s ability to advocate effectively.
Hodgetts also slammed bank messaging that encourages consumers to go direct, saying it undermines competition.
“Consumers want to use mortgage advisers for a very good reason, and advisers drive competition, so we can only assume the banks are trying to prevent competition by making it harder for advisers to operate,” she said.
FAMNZ pledges to drive change
Acknowledging skepticism that her remarks could be seen as a membership drive, Hodgetts insisted the issue was broader.
“It’s time for an honest acceptance that the industry is in a mess,” she said, citing the challenges posed by Commerce Commission recommendations and perceived bank resistance to the adviser channel.
“Our commitment to mortgage advisers is that FAMNZ will drive the change that is needed, but we need you to join us in this journey,” Hodgetts said.
She also called on lenders to respect consumers’ choice to work with advisers, emphasising collaboration to create fairer processes.
With banks promising to improve service levels and FAMNZ pushing for systemic change, the call for action highlights the urgency to address New Zealand’s mortgage industry challenges.
As a mortgage adviser, have you noticed longer turnaround times on home loan applications? What can be done about it? Share your comments below.
