FAMNZ calls for mortgage adviser “action not apathy” over unacceptable wait times

FAMNZ calls for mortgage adviser “action not apathy” over unacceptable wait times

The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) has called on all advisers to join them in the fight to make a stand against what it has labelled “anti-competitive bank practices” that are hurting not only mortgage advisers, but New Zealand consumers.

FAMNZ country manager Leigh Hodgetts said the current wait times for adviser generated home loan applications compared to direct applications is unacceptable and she has arranged meetings with senior management from the banks to discuss this, along with recent recommendations from the Commerce Commission.

“More than half of all consumers choose to use a mortgage adviser, and it appears that lenders are taking these consumers for granted,” she said.

However Ms Hodgetts called on advisers to play their part by becoming a member of FAMNZ.

“We want to challenge banks and stand up for mortgage advisers but there is power in numbers and most advisers are not a member of any professional body, which erodes the influence of our sector.

“There is no more time for apathy when it comes to protecting our industry. It’s time for action,” she declared, adding that if advisers want results they must be prepared to commit.

She questioned if banks still care about the adviser channel, and slammed recent bank comments encouraging consumers to go direct to get better deals and quicker processing times.

“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.

“Unless we bring a change of attitude and changes to procedures, mortgage advisers and their customers will suffer.”

Ms Hodgett’s acknowledged that cynics may interpret her comments as a ‘membership drive’ but says this misses the mark.

“It’s time for an honest acceptance that the industry is in a mess, the ComCom recommendations are creating confusion, lenders are trying to squeeze out the adviser channel, and unless we work together there will be more pain.”

“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. Our message to lenders is to support the wishes of consumers to use advisers, and work with us.”