Planners move to employ mortgage brokers instead of using referrals
Financial advisers are looking at bringing mortgage broking in house and moving away from referral relationships and integrating mortgage broking into their advice processes according to a mortgage aggregator.
Centrepoint Lending Solutions (CLS) general manager, Kevin Frost, said he more planners had been in contact with him about finding a salaried or contracted mortgage broker to integrate into their practices instead of using external referral partners.
He said previously CLS, the mortgage aggregator of the Centrepoint Alliance group, has received approaches from planners and accountants for lending referrals to mortgage brokers outside their practices but this has shifted with planners either hiring brokers or creating new businesses in which both parties have financial stake.
Frost said these arrangements have expanded the scope and client base of both service providers and it is becoming more common for advisers and accountants to involve a mortgage broker in meetings with clients.
"This approach means that internal referral processes can be properly integrated, and office and administration costs can be shared. Most importantly, it means the mortgage broker becomes an integral part of the business," Frost said.
"When that happens, we do tend to see significant increases in the volumes of loans written. It also means the mortgage broker can properly leverage their client base by referring them for financial advice.
"This approach isn't for all mortgage brokers, advice or accounting practices. There are still many practices who are content to simply refer each other business, and this often makes sense in terms of their size and focus. But for some larger firms, bringing their mortgage broking capability in-house can provide real benefits all round."
AUTHOR
Jason Spits
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
