Welcome to the first edition of nMB Intell.

In what has been an unprecedented time in the mortgage industry, and the overall global economy, nMB and our brokers have been able to push through with some great results which Sal details in his Sales & Marketing Update.

With the flow on from the global financial crisis impacting Australia, we have seen those lenders remaining in the game starting to tighten their lending rules and ration broker accreditations. At the same time, the lenders are struggling to provide a reasonable service level, as they cope with increased demand, particularly through first time buyers accessing the governments’ stimulus hand outs.

Pleasingly, nMB brokers have continually ranked extremely high with lenders’ quality, conversion and electronic lodgment targets, in many cases improving throughout these difficult conditions.

The effects of lower interest rates and various government measures have been more than offset by the reported slowdown in consumer spending (around only 1% growth this financial year) and rising fears of unemployment (tipped to hit 8.5% in 2010). The next 12 months will be difficult in many ways, however, there are still great opportunities for disciplined brokers who service their clients well and stay focused on their business. More than ever, there is demand for the service, choice and advice that mortgage brokers can deliver.

With the federal government recently announcing its review of Australia’s credit laws, including national licensing of mortgage brokers, there will be more challenges ahead to understand and overcome in coming months. The benefits of licensing will hopefully include a better informed consumer market, a more level playing field across lenders & brokers and businesses who have previously dabbled in credit will now look for professionals to service their needs in this area.

I hope you enjoy this first edition of nMB Intell.

Gerald Foley - Managing Director

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Welcome to the S&M section of nMB Intell where we will communicate a summary of events, ideas and performance related information. We trust you will find this useful and informative.

nMB Performance. Loans written by nMB brokers in March ’09 reached $232m. This represents a YoY increase of $59m or 34% when compared to the same period for ‘08. This is an outstanding result considering the macro economic conditions we have been dealt. nMB’s loan book has grown from the beginning of the ’09 FY and as at March end, has topped $6.2b.

nMB Sales Meetings. April & May meetings included quality content across a number of topics. Here are a few of the highlights…..

• Business Growth - How to create trust with clients & the 80/20 Pronto Audit.

• Client Retention - Regular and relevant communication & how to unlock hidden data within your CRM for marketing purposes.

• Lead Generation - Tips for generating new leads & how to run an effective competition.

• Featured lenders included La Trobe and ANZ.

• BT insurance launched. nMB brokers are now able to provide clients with BT Home & Contents and Landlord insurance products. BT’s H&C policy features a number of inclusions not usually offered by other manufacturers. The pricing is competitive and the commission structure includes 12% upfront and 10% for renewals – please check the Fee Schedule of the MBS for details.

• Deposit Underwriters have launched an online application system and have increased commissions to 15% for nMB brokers utilizing the new system. Please check the Reference Section & Fee Schedule of the MBS for details.

Risk Insurance. During April, nMB & ALI conducted an insurance focus group. The sample included 12 nMB brokers in three distinctive groups. The 1st represented 4 brokers accredited with ALI and successfully selling insurance; the 2nd represented 4 brokers accredited but not selling insurance; and the 3rd group included 4 brokers not accredited and not selling insurance. The purpose of the focus group was to uncover objections, discuss successful strategies and explore how ALI style products support referral relationships with financial planners. The focus group was insightful and the outcomes will be presented during the upcoming sales meetings.

Direct Marketing. To help you secure your share of the fixed rate loan market, we launched a Direct Mail campaign you may action when you feel the time is right. There are three new fixed rate DM letters contained in theCRM - two specifically written for the pending upward cycle, and one for investors. To compliment the DM letters, the Fixed Rate Schedule has been updated to include the latest information on when lenders lock the rate; rate lock fees; principal sum reductions; early repayment fees; & the variable-to-fixed rate conversion process including costs for each lender.

If you were unable to attend the sales meetings and wish to learn more, please contact your nMB BDM

Sal Cinque - Director, Sales and Marketing

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Back to Basics …

We are currently in an environment where lending policy is rarely standing still. Lower LVR’s, genuine savings, stable employment and clear credit history are recent examples of how credit policy is tightening. A return to the times where credit worthiness is critically looked at, and whereby the mere completion of a finance application form doesn’t automatically guarantee approval. That’s not to say that applications were previously not being assessed, it’s just that the sausage factory mentality is gone and the scrutiny has been lifted a notch or two.

The basic principles of lending apply now more than ever. The four C’s are one of the ways lenders determine a borrower’s creditworthiness.

The following is a brief summary of the four C’s - Capacity, Credit, Capital and Collateral.

Capacity is the ability to repay a loan based current income and work history. We want to make sure the borrower has the ability to repay the loan. We need to consider the amount and the stability of the borrower’s income. Will the borrower have the capacity to repay the loan if interest rates increase or they are temporarily unemployed?

Credit is the confidence in the borrower’s ability or intention to fulfill your financial obligations. The Veda credit check will play a large role in this assessment. It is becoming increasingly difficult to get loan approvals with credit unpaid or paid credit defaults.

Capital is defined as wealth such as money or property accrued by an individual indicating the amount of money you have saved to cover the deposit and associate costs in purchasing a property. Most lenders now require a minimum of 5% genuine savings for applications requiring a LVR greater than 80%.

Collateral is determined by looking at the value and quality of the security property being offered as security. Whilst most lenders have reduced the maximum LVR to 90% of purchases there are still a few lenders that will lend to 95% for very good quality applications. Final comment, when all else fails, ask yourself the question, “Would I lend my own money to this Client?”

Sarah Zecevic - Lending Services Manager

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MS. Vista & Office 07 – Worth a try………

After a rocky start MS Vista and Office 07 are starting to emerge as, dare I mention, seamless partners to MBS.

MBS has always been reliant on a solid, well functioning Operating System (OS), and to date XPpro has served us well. When we first saw Vista coming onto Broker machines last year, we all took a deep breath and quickly began dissecting its security components. It’s fair to say we had our problems, user accounts settings, file access, printing and shutdown issues became among the first hurdles we encountered. Some twelve months on, and after numerous fixes and updates by Microsoft, we finally have a partnership that is once again cohesive.

In fact, we find that once MBS is loaded and the Vista OS is configured, there is little else required. Most problems occur when unrelated software is loaded or Vista updates are not performed. It is also important that your machines are keep as “Business Machines”.

There are five essential components to maintain a bug free business computer.

1. Keep the OS updated.

2. Update and synchronise MBS at least daily.

3. Maintain a data back up regime. Depending on the size of your business, daily/weekly backup of data is recommended, (which is stored off site). This can be facilitated via data tape, external USB drive, or data DVD/CD.

4. Good Anti Virus Software CA, AVG McAffe & Nortons. Use well known, well supported brands.

5. Avoid any third party software that does not relate to your business, eg games, multi media software shareware, software which enhances your web tool bars, computer performance etc.

Adhere to these five rules and you will have trouble free experience.

Kon Avramidis - Director, Operations

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Sarah Zecevic - Lending Services Manager

1. My all time favourite food is:

Chocolate

2. The last book I read was:

Breaking Dawn by Stephenie Meyer

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

The Presets

4. My favourite saying is:

Never say never!

5. My Ideal Sunday involves:

Sleeping in

6. My biggest inspiration is:

Richard Branson

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

Positano - Italy

8.The most extravagant gift I have bought myself is:

A designer handbag

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

Gordon Ramsey - he is cooking!

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

• Spend New Years Eve in New York
• Take a hot air balloon ride
• Attend the Rio Carnival

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nMB June Sales Meetings

Please make note of the relevant nMB June Sales Meeting date in your diary:

Brisbane Tuesday 9th June

Sydney Wednesday 10th June

Gippsland Thursday 11th June

Melbourne Friday 12th June

Please RSVP your attendance to your state BDM.