The government’s increased scrutiny of the industry got you down? One mortgage director shares his thoughts on how to keep calm and carry on
It’s not hard for brokers to get anxious these days amidst increased scrutiny from the royal commission. But Finweb director James Angus sees it differently. If anything, the commission’s probe has made him further appreciate the role of brokers, especially if one considers the market share of broker-originated home loans.
"Considering the recent ASIC review, and the relatively short period of time the BRC has to scrutinise such a broad range of banking industry-related issues, I don’t really believe they will come up with anything more substantial or different than what ASIC has recommended," Angus told MPA.
While he understands the need to investigate fraudulent practices in the industry, he wants people to see them in proportion to the overall loans written through the broker channel. Angus sees these condemnable practices as a miniscule portion that are continuously being weeded out of the broking profession.
Looking into the lending practices of other channels and client-initiated frauds will strengthen the image of brokers, according to Angus. "That will validate customers’ choice to go to a broker for their financial needs.”
Angus is confident that the commission’s current model is largely right, and the changes recommended by ASIC were based on sensible conclusions and analysis, not on sensational headlines.
The influx of information coming in from the investigation hasn't drastically affected the way Angus runs his business. He just changes and tightens his credit policies continuously. That means his team needs to stay on top of what their lending partners are doing, always assessing how coming information impacts client needs. He also encourages his team to keep abreast of regulatory changes and discussions so they can find ways to help shape the industry's future.
"As far as we're concerned, it's really just business as usual," Angus said.
