Here are some tips for them to consider…
The mortgage sector has witnessed significant upheaval over the past few years, shining a spotlight on the critical relationship between lenders and brokers. Amid rapid rate fluctuations and product modifications, brokers have needed to respond swiftly to align with the decisions of their lending partners.
In light of these dynamics, how can lenders proactively ease the burden on brokers who are diligently promoting their products to their clientele?
How can lenders better support brokers?
Michelle Lawson (pictured left), director at Lawson Financial, said lenders must prioritise understanding brokers’ role as intermediaries, as they contribute approximately 90% of their business.
“Despite this significant contribution, they sometimes attempt to marginalise our involvement, making business interactions unnecessarily challenging,” she said.
It is imperative for lenders, Lawson said, to recognise and value the contributions brokers bring to the table, fostering a collaborative relationship rather than one characterised by friction.
Lawson said brokers’ roles extend beyond mere facilitation; they streamline processes, handle administrative tasks, and effectively package deals, all of which are integral to lenders’ operations, especially when dealing with indirect business.
However, she said a notable challenge arises in retention efforts; lenders, Lawson added, often perceive brokers as a threat because their aim is to secure the best rates for borrowers, even if it means directing them away from the lender’s offerings.
“Yet, it is crucial to emphasise that our loyalty lies with providing optimal solutions for borrowers; we are willing to maintain customer relationships with lenders, but only when it aligns with the borrower’s best interests and financial well-being,” she said.
Ultimately, Lawson said fostering a mutual understanding and appreciation of each other’s roles is essential for fostering a productive and sustainable partnership.
Meanwhile, Rhys Schofield (pictured right), brand director at Peak Mortgages and Protection, said improving broker support within lending institutions begins with establishing underwriting teams that exhibit proficiency in their assessments, avoiding trivial inquiries and demonstrating competence in deciphering essential documents, such as payslips.
This fundamental adjustment, Schofield said, is pivotal in ensuring a smoother and more efficient lending process.
“Beyond jests, the essence of a lender’s responsibility lies in maintaining transparent policies, exercising sound judgment, and expediting application processing with diligence and speed,” he said.
By adhering to these principles, he believes that lenders empower brokers to focus on their core competencies, thus enhancing the overall efficiency of the lending ecosystem.
Moreover, Schofield said eradicating the practice of dual pricing is imperative, as it represents a detrimental stance that undermines the symbiotic relationship between brokers and lenders.
Engaging in dual pricing, Schofield added, not only tarnishes trust, but also engenders animosity, ultimately jeopardising the collaborative efforts needed for mutual success.
Embracing fair and equitable pricing structures, he said, is not only ethically sound, but also serves as a testament to a lender’s commitment to fostering a harmonious partnership with brokers.
“In essence, fostering an environment where underwriters exhibit proficiency, policies are clear and sensible, and application processing is swift and efficient lays the groundwork for a mutually beneficial collaboration between lenders and brokers,” Schofield said.
By prioritising these principles and eschewing practices that undermine trust and cooperation, he said, lenders can establish themselves as true partners in the broker-borrower relationship, thereby facilitating smoother transactions and enhancing overall industry integrity.
What do you believe lenders can do to better support brokers? Let us know in the comment section below.
