Welcome to August Intell

When I wrote last month’s Intell I stated that by this time we would have been to the polls and have a newly elected prime minister. I got it half right – we’ve been to the polls - but we don’t yet know which party or who is going to lead our country for the next few years. We may not even know the final outcome for at least another week. Even after all this is resolved, I can see us back at the polling booth inside 12 months to do it all again.

July was a good month for nMB, we achieved our highest settlement month this year, so it has been a nice start to the new financial year. Also very pleasing are the recent announcements by a number of lenders coming back into the market and/or launching new, better products. Hopefully these are more signs of greater competition returning. As I was quoted recently in Australian Broker, it is now up to brokers to support the second tier banks and mortgage managers where we can to ensure they remain a viable alternative to the dominant four majors. Naturally those lenders also need to support brokers with good products and service to complete the picture.

Despite the uncertainty on the political front, there seems a common view that interest rates will stay on hold for the short term. This will boost borrower confidence over the next few months as we approach the Spring selling period.

The media around licensing has been interesting. It seems some groups have decided to go down the “one size fits all’ approach” for their brokers. For the retail aggregators I understand this, but it’s hard to see why a “wholesale” aggregator would think that all their broker businesses would fit into one licensing model. Our flexible approach, I am confident, is the right way to go.

To assist our brokers with licensing, we have announced workshops in Brisbane, Sydney, Canberra, Melbourne and Gippsland throughout September, in conjunction with QED Risk Services. I look forward to catching up with our principal brokers to outline the steps involved in obtaining their own license, should they chose to go this way, or to be appointed a Credit Representative under nMB’s licence. QED will be available to assist those brokers looking to obtain their own licence.

The inconsistency between APRA regulated lenders and brokers in dealing with the new responsible lending provisions is highlighted by Kon within his Operations Update. Many brokers still need to come to terms with their new responsibilities clearly including taking on a credit role, rather than the traditional conduit role between their customer and the chosen lender.

Until next time, stay well!

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Lock away Feb 2-4 2011 in your diary

Plans are well underway for the 2011 nMB National Conference, to be held at the Melbourne Convention & Exhibition Centre on South Wharf, February 2 - 4. Based on the success of our 2010 conference, we have already received great interest from brokers.

Early support from our suppliers has been encouraging, with several already committing to sponsorship packages. At this stage we are pleased to announce: ANZ as Principal Sponsor; CBA as Gold Sponsor; Adelaide Bank, ALI, Homeloans & nMB Direct all Silver Sponsors; and a few to join the list.

The theme of next year's conference is "Lift" and our list of distinguished speakers will deliver content focused on lifting brokers' professionalism and performance. Here is a snap shot of just a few of the speakers:

Lift performance by planning, training, discipline and commitment.

Presenter: James McMahon, Chief Operating Officer at Azure Capital | Non-Executive Director of the West Coast Eagles | SAS Resources Trust Board | Member of the Australian Institute of Company Directors.

Previously James served in the Australian Defence Force as SAS Commanding Officer where he was awarded the Distinguished Service Cross and Distinguished Service Medal for command and leadership in action during his command in Timor Leste, Afghanistan and Iraq.

James’ address will focus on performance management where he will share his military experience and draw the parallels in business.

Lift performance with an improved image.

Presenter: Jon Michail - Australasia’s No.1 Image Coach. Engaging, entertaining and passionate, Jon is the Founder & CEO of Image Group International and the Institute for Image Management; an Australian based multi-million dollar corporate image advisory and coaching organisation represented in over 18 countries.

Jon-Michail’s address will focus on professional development. The key components of the presentation are Inner Image; Effective Communication; Wardrobe Strategies; and a delegate will also receive a Transformation.

Lift performance with action.

Presenter: David James, Principal of Salescoach (Australia) Pty Ltd, a national and international sales and leadership coaching business.

David’s address will focus on improving performance and professionalism, with practical, hands-on strategies that may be implemented within a broker’s business immediately.

David’s tell it how it is presentation style, will direct you towards making decisions to assertively “lead” yourself, so gaining more control over your personal and professional goals.

Lift performance with knowledge.

Presenter: Tim Crawford, Senior Analyst at Bankwest. With over 15 years experience, Tim’s previous positions include: Group Economist for HBOS in London; Senior Economist at St George Bank in Sydney; & Economist at EquitiLink Investment Management.

Tim will present an insightful update of the macro and micro economic factors that have shaped the financial landscape over the past year and predictions for the new year.

Further details related to social activities, awards dinner, entertainment, accommodation and registration to be released soon.....

Sal Cinque - Director, Sales & Marketing

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nMB Direct Basic Loan

If you haven’t already read the news, nMB Direct recently welcomed a new member to the family.....the nMB Direct Basic Loan.

With a number of applications already submitted since the 6 August launch, the Basic Loan has proven to be a valued addition to the nMB Direct suite of products.

Currently boasting a low ongoing interest rate, no account keeping fees and no application fees*, it is a fantastic proposition for owner occupiers and investors who are looking for a well priced, well appointed, no frills loan.

Here’s a little reminder of what’s available under the nMB Direct Basic Loan:

*Promotional offer for a limited time only. This offer is subject to change without notice.
** Rate correct as at 23 August 2010.

To learn more, please refer to the Mortgage Broker Suite or call us at the office.

Jodie Hainey - Lending Services Manager

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NCCP Broker vs. Lender post 30 June 2010

One situation that has arisen as a result of NCCP, which I believe has not been highlighted, is that from the 1st of July this year, brokers and lenders are effectively working with a different sets of rules. Whilst brokers are now coming to terms with Responsible Lending which includes the not unsuitable test, lenders have until the 1st of January 2011 to implement these changes.

This places brokers in an inequitable position compared to lenders who have the ability to approve loans that under legislation brokers are unable to submit.

This may seem unfair and it becomes increasingly evident in the world of LoDoc/NoDoc loans. Whilst I suspect there may be a place for LoDoc loans post 2010, the same cannot be said for NoDoc loans.

The reason relates to the process that brokers are now required to follow when assessing a consumer loan which includes making reasonable enquiries about the client’s financial situation which includes verification of their financial circumstances. In other words a broker needs to be reasonably comfortable that not only are the client’s requirements met, but that the credit is also financially affordable by the Client without facing substantial hardship.

ASIC has specifically chosen not to define “substantial hardship” but has instead listed a number of factors to take into consideration:

• The consumer’s net income after living expenses have been allowed for;

A broker’s ability to apply the above criteria against today’s LoDoc or NoDoc loan is not achievable, in my opinion. The dilemma we face as brokers is that we operate in this environment today, whereas lenders are not required to fall into line until the 1st of January 2011.

The new world brings with it a shift in mindset where brokers can no longer see themselves as merely the conduit between the client and the lender. The legislation now dictates that the broker must firstly satisfy themselves that the credit meets their own criteria and only then can they submit the loan to a lender who then applies their own criteria.

Kon Avramidis - Director, Operations

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Jeremy Fisher, nMB Broker - 1st Street.

1. Why did you join nMB?

nMB were boutique at the time and I liked that they made themselves available to assist with the thousands of questions I would have had being in a new business. Over the years, they still are always available so they haven’t changed in my eyes.

2. What do you like about being part of nMB?

You are not just a number, and despite their growth over the years, they always have time to take your call.

3. What do you like about being a broker?

The flexibility to run your own show. Also seeing my clients' excitement when they purchase their new home is also very rewarding.  

4. My all time favourite food is:

Steak Diane and chips.

5. The last book I read was:

Andre Agassi's Autobiography.

6. Lately I’ve been listening to a lot of:

Crowded House.

7. My favourite saying is:

Everything happens for a reason.

8. My Ideal Sunday involves:

Playing tennis twice in the day, doing work around the house and dinner with friends would be ideal. In reality, having 2 kids and a wife means my ideal Sunday doesn’t exist!

9. If I didn’t live in Australia I would live in:

Italy as I love the culture and had great experiences when I travelled there previously. The food there is amazing too!

10.The most extravagant gift I have bought myself was:

I am yet to make the real splurge but it is coming on my 35th birthday next year!

11. If I could have dinner with anyone (dead or alive) I would choose:

Andre Agassi as I have always rated him as my favourite tennis find his life story really inspiring, so to meet him and talk about his life would be a great honour.

12. Three things I would love to do in my lifetime are:

Travel around the world for a year, manage a tennis centre and learn how to delegate!

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nMB Training Dates

SOFTWARE TRAINING:

Canberra - Advanced - Tuesday 31st August

Melbourne - Basics - Tuesday 7th September

Melbourne - Advanced - Tuesday 28th September

ACL WORKSHOPS:

Brisbane - Tuesday 7th September

Canberra - Monday 20th September

Sydney - Tuesday 21st September

Melbourne - Monday 27th September

Gippsland - Tuesday 28th September

Please email your interest in attending to your state BDM.