Interesting data

Discussion in 'Loans & Mortgage Brokers' started by Rolf Latham, 12th Mar, 2020.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    Earlier this week, the Australian Financial Complaints Authority (AFCA) published data for the six months to December 2019, which found that the number of mortgage-related complaints rose by 20 per cent when compared to the average monthly figure in the previous reporting period.

    Despite this, brokers only represented 15 of the 2,201 progressed home loan complaints made by consumers.

    This equated to 0.68 per cent of all complaints made in relation to home loans in the six months to December 2019, down from 0.74 per cent in the previous reporting period.

    In comparison, lenders (including banks, building societies, and non-bank credit providers) accounted for 93.5 per cent of all complaints made in relation to home loans.

    ta
    rolf
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Is that an indicator of the efficiency of using a broker or that brokers occupy a very small sector of the market when compared to punters going directly to their bank/financier?
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    Nah, its about complaints :) by borrowers to the AFCA

    mortgage broker market share increased to 55.3 per cent in the December quarter of 2019, up 0.4 percentage points period-on-period.

    so 55 % of loans are via broker, but complaints from 45 % loans via direct are at 147 times higher.

    To be fair, i suspect that a lot of the lender based complaints are over much larger time scale

    But its interesting data, when you consider there are > 10 000 active brokers in Oz.

    ta
    rolf
     
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  4. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    yes its flattering but I think it misses a point in that if a consumer has an issue with a loan a few years after they took it out then its ultimately a problem between them and the lender.