Tuesday, July 14, 2009

Why you shouldn't trust a mortgage broker

Today's Australian:

"The Commonwealth Bank has told 8000 mortgage brokers from a variety of broking firms they will no longer be able to offer the bank's home loans if they fail to write enough business for the bank.

Wayne Ormond, executive chairman of Queensland-based mortage brokers Refund Home Loans, told The Australian yesterday the CBA had written to his firm last month stepping up a demand first made in January that each of its brokers submit four home loans per quarter.

Mr Ormond said Refund employed 270 brokers, meaning the group would have to put through 1000 CBA home loans every three months...

"It would be valid for consumers to ask: if a broker is recommending a CBA loan, is that the best loan, or is it being recommended so the broker won't lose his accreditation?"