It seems all the talk and activity at the moment is around licensing. I look forward to when all this has been completed and we can get back to the business of doing business. Our brokers are well advanced in registering with ASIC and we have just sent off the first reports to lenders advising registration details.
As we anticipated, the introduction of licensing has caused a small number of brokers to re-evaluate whether they remain in the mortgage industry. The vast majority of brokers see this as a market defining period, which once through the initial registration and changes to businesses process, will see mortgage broking go from strength to strength. We are starting to also see other brokers looking at their current aggregator’s licensing model to determine if it fits the way they want to operate their business in the future.
Our offering of a flexible approach - own Australian Credit Licence or operate as a Credit Representative under our licence - is proving the right strategy.
The Banking Services Alert published by MacGillivrays, outlining the NCCP and its impact on referrer businesses, was well received. I think there is a great opportunity for mortgage brokers to approach businesses in their local area to alert them to the NCCP and how they can continue to deal with finance referrals after 1 July.
It has also been interesting to see how lenders all seem to want a different level of information to satisfy their internal ACL requirements. I guess they don’t seem to agree on much these days, so why would ACL requirements be any different!
May saw the Reserve Bank announce the third increase to the Cash Rate in the past three months, a further 25 basis points to 4.50%. I expect they will sit back now for at least a few months to gauge the impact of this recent tightening cycle – a total increase of 150 basis points since last October. It is also very rare for the Reserve to move rates in any direction at their first meeting after a federal budget.
I spent a bit of time at the MFAA Conference in Melbourne last week. Attendees seemed to be more optimistic about the state of the industry than this time a year ago. Whilst there is still a level of frustration amongst brokers with regards to lender commission levels, service and accreditation requirements, most seem to think the worst is behind us and we are moving towards a more positive environment.
Until next time, stay well
Gerald Foley - Managing Director
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Quarterly PD Events
Acting on feedback received from brokers, the monthly sales meeting program has been replaced by quarterly meetings. April and May saw the introduction of our new Professional Development Series. Each event was well received, with record numbers in most states. The new format includes:
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A presentation of monthly and quarterly awards;
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An update of nMB performance;
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A presentation from a guest speaker;
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Speed-presentations from 5 suppliers, covering an introduction of their business, target market, leading products, reasons clients & brokers should select their service, current turn around times and accreditation requirements.
At the end of each event time is allocated for networking purposes, where brokers are able meet with peers, suppliers and guest speakers.
We thank all brokers for attending our first round of PD Events for 2010 and also thank Citibank for making their premises available around the states.
The content during April and May included: monthly and quarterly awards; an nMB update: an update on licensing; the launch of RUN Property as a new supplier; & presentations from 5 lenders.
Licensing
We provided a licensing update including key dates, the various models, fees, compliance, registration and how licensing may affect your affiliate and referral partners.
As a follow-up to the meetings we launched a direct marketing template and related legal advice that may be used to communicate the licensing message with existing and potential affiliate and referral partners. Note: The marketing template may be actioned directly from the nMB CRM.
If you haven’t already registered your business with ASIC please click here to do so asap. Once completed, please fwd a copy of the ASIC confirmation email to our offices.
RUN Property
We then launched a new supplier to the nMB panel.....RUN Property. RUN Property is the largest property management and services group in Australia. Craig Wright, Head of Investment Sales for RUN discussed what you can expect from establishing a relationship with RUN Property including: property management; sales services; marketing support; referral process; & fees. Further details are provided on the nMB Mortgage Broker Suite.
Lender Presentations
We thank the following lenders for presenting their products, area of specialisation, competitive advantage, turnaround times and accreditation requirements.....
ANZ
Key message – no individual performance hurdles / strength of their 60% loan doc.
Citibank
Key message – strong second tier option with no ‘cash-out’ limits.
nMB Direct
Key message – competitive pro-pack with discounted fixed rates / fixed rate products with offset and redraw / 95% LVR with non-genuine savings.
Liberty
Key message – back in the market with a competitive offering.
BankWest Commercial (SME)
Key message - business accreditation is automatic for nMB brokers who hold a retail accreditation.
Thanks again to all our brokers and suppliers for their participation. We look forward to catching-up at the next nMB event.
Sal Cinque - Director, Sales and Marketing
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Is your business taking advantage of the Facebook phenomenon?
You are probably well aware of the social media phenomenon that has swept the internet over the past few years. Facebook and Twitter appear to be mentioned in the media almost as frequently as economics, the environment and politics. Speaking of politics, a large number of politicians, including our own PM Kevin Rudd, have recognised the benefits of social media and have joined Facebook and Twitter to regularly communicate with their supporters. The 2008 U.S election has even been referred to by some as the ‘Facebook Election’, with Barack Obama’s success being attributed in part to his ability to connect with Americans via his well constructed Facebook page. Barack’s page boasted 3 million ‘fans’ (the word used to denote Facebook page followers) by the end of his electoral campaign and now has more than a staggering 8 million fans.
Facebook, which was founded in 2004 by a group of Harvard students, has recently released figures to suggest that it now has over 400 million active users around the globe. With this figure in mind, it’s not hard to see why Facebook has seemingly taken over the world, or at least the World Wide Web.
Facebook was created to ‘help people communicate more efficiently with their friends, family and coworkers’ (Facebook Press Room, Fact Sheet), but it has now also become a powerful tool for businesses to communicate with their clients or customers, via Facebook advertising, groups and fan pages. Big international brands like Coca-Cola, Starbucks and Red Bull have all successfully used Facebook to actively engage their target audience, but so too have thousands of small businesses, including dozens of Mortgage Brokers.
If your business isn't already on Facebook, perhaps it’s time for you to consider joining the likes of Kevin and Barack and take advantage of this potential highly effective marketing tool.
Why should I create a Facebook page for my business?
It’s Free - An undeniable benefit for small businesses with limited marketing budgets.
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It can improve your search engine ranking - Facebook pages rank highly in Google and can improve the search engine ranking of your business’ website, helping to drive traffic to it.
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It helps keep your business top of mind - If your Facebook page is updated regularly it keeps your business top of mind amongst clients, as updates will appear on your fans' main Facebook user interface (referred to as 'News Feed'). This is a great way of maintaining your client relationships.
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It's an excellent client communication vehicle - A Facebook page provides you with a simple means of communicating valuable and up to date information to clients. See Facebook page communication ideas below.
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It can provide a means of attracting new clients - If you have a personal Facebook account you can ask your Facebook friends to suggest their Facebook friends become fans of your page. This can act as a great referral opportunity, as your friends' friends may be interested in the services of a mortgage broker.
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It facilitates insights into clients/fans- Facebook fan pages are equipped with a good amount of analytics tools accessible by page owners. You’ll be able to track the number of interactions your page has with fans and view key demographic information. You can also learn a lot about your fans' needs by initiating discussion topics, Q & A's and taking note of fans' comments on your posts.
How do I create a Business Facebook page?
The myriad benefits that can be realised by having a business Facebook page are quite clear, but how do you go about creating an effective Facebook page for your business? To make the process easier, Facebook has produced some helpful ‘How To’ guides, so even the most technologically ignorant of us can create a winning Facebook page for our business.
Click here to view the Facebook page guides:
What information should I put on my Facebook page?
Consider incorporating the following into your Facebook page:
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Business contact details and office map.
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Business logo.
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Your web address.
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Company information (About Us).
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The service you offer clients.
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Links to your newsletters.
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Links to relevant news stories (e.g. Interest rate changes, first home owner information).
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Links to affiliate websites.
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Links to valuable industry websites.
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Information about any promotions you are running.
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Information about any competitions you may be running.
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Event information .
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Discussion boards.
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Client testimonials.
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Frequently asked questions.
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Any relevant Photos (e.g. from your business' Christmas party, or seminars you may have taken part in).
How Can I attract fans to my Facebook page?
So you’ve created an effective Facebook page for your business, but how do you find fans who are genuinely interested in your business? Here are some tips to get your fan base started:
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Add a link on your email signature which email recipients can simply click on to join your page.
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Create an email campaign informing clients about your Facebook page and the type of information it contains. You could consider encouraging clients to become fans by entering them into a prize draw if they join by a given date.
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Add a ‘Find us on Facebook’ image link on your website and newsletter (Click here to download image link).
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Place a sign in your office reception area informing clients that you’re now on Facebook. Provide an incentive for clients to join then and there via their mobile phone.
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If you already have a personal Facebook profile, place a link to your business' Facebook page in the 'Write something about yourself' section of your personal profile.
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If you already have a personal Facebook page, you could consider inviting your personal friends to become fans of your business page.
Click here for information pertaining to Facebook page promotional guidelines.
Important Facebook dos and don’ts.
Do
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Ensure you update your Facebook page regularly. This will help keep your business top of mind amongst fans.
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Post relevant and helpful information and updates on your page that your fans are likely to be interested in.
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Post questions or conversation starters. This will help you engage your audience and their responses will enlighten you about their needs.
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Mix up your updates to keep them fresh (e.g. Links, photos, discussion topics, latest promotions etc).
Don’t
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Name your Facebook page anything other than your business trading name.
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Use your business page for personal interactions (ie. Communicating with friends in an open Facebook forum).
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Overtly sell your services all of the time.
Become a fan of nMB's new Facebook page and stay informed about all the latest at nMB. Feel free to use our Facebook page as inspiration for your own.
To become a fan simply click on the link below and press 'Like' next to the National Mortgage Brokers heading.
If you would like more information about creating a Facebook page for your business, please contact me.
Kate Jeremiah - Marketing Coordinator
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Have you considered using a Deposit Guarantee?
What is a Deposit Guarantee?
Also known as a Deposit Bond, a Deposit Guarantee is a cash deposit alternative, available for up to 10% of the purchase price of a residential property. They are available for both short term settlements of up to 6 months and long term settlements for up to 48 months. The bond is issued in lieu of cash for the purchase of a property, with the full sale amount to be handed over at settlement.
Why use a Deposit Bond?
It gives the purchaser flexibility to enter into a contract if they are:
A First Home Buyer who doesn’t yet have access to funds or gift
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Wanting to continue earning interest on the cash deposit until settlement
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Holding shares or a fixed term deposit that they don’t want to break
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Making an off the plan purchase and don’t want to part with the cash deposit until completion
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Waiting on the settlement of a property they have recently sold
When is the Deposit Bond payable?
The purchaser is required to hand over 100% of the purchase price at settlement, at which time the Deposit Guarantee is terminated.
You can find further information on Deposit Bonds, including pricing, by visiting the Deposit Guarantees reference page in the Lending Centre of MBS.
Jodie Hainey - Lending Services Manager
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Staff, the key to expanding your business
The decision of when to bring staff into your business can be a difficult one to make for some brokers. While the costs of increasing labour are obvious and easy to measure, it’s not as straight forward to measure the benefits, which can often be indirect and not immediately felt. This is further enhanced when we are looking at broker businesses which are one or two person operations.
For many of us there is a physical road block which prevents us from producing more in our business. For mortgage brokers, this translates into the number of submissions a broker can handle at any given time. Consider the added impact of licensing and fluctuating lender service standards, and these numbers become increasing difficult to maintain, let alone grow.
If growth is a key objective, one of the ways to tackle this “physical road block”, is to employ staff.
When assessing your business it’s important to firstly identify the areas which would mostly benefit from another pair of hands. Is the aim to grow new business or to relieve the administrative burden which accompanies each file? Does addressing one resolve the other?
Once the decision is made, it’s important to document key areas of assistance, and design a process which is simple and easy to follow. Finally, a system is required to assess how well employees execute the prescribed processes.
nMB can assist brokers looking to bring on staff in a number of ways; from identifying the requirement, advertising, and suggested contractual arrangements. For more information, and to discuss the options, contact your nMB Business Development Manager.
Kon Avramidis - Director, Operations
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Margaret Chapman - nMB Business Development Manager, VIC TAS
1. What do you like about being part of nMB?
I’ll need to give you my Top 5;
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The nMB team,
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Sensational brokers,
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Industry leading software,
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Terrific model and;
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The feeling that my contribution counts.
2. My all time favourite food is:
Sorry, but difficult to narrow it down to one. Instead I’ll say my all time favourite meal was at The Press Club in Melbourne. Devine!!
3. The last book I read was:
“Cat O’Nine Tales” which is a collection of Jeffrey Archer short stories, inspired by his time in prison.
4. Lately I’ve been listening to a lot of:
Nothing really. Only while in the car and even then, I’m surfing stations and CD’s. Lady Gaga is good for a pick-me-up.
5. My favourite saying is:
“Good luck with your project.”
6. My Ideal Sunday involves:
A delicious breakfast, followed by a long lunch at a scenic winery.
7. My biggest inspiration is:
In seeing the end product. I like putting the work in with a vision of how things will work out, and then seeing them materialise.
8. If I didn’t live in Australia I would live in:
Paris – it's a beautiful city and close to everywhere in Europe to travel to.
9. The most extravagant gift I have bought myself was:
It's a bit hard to decide but might be hidden within my Prada handbag collection.
10. If I could have dinner with anyone (dead or alive) I would choose:
Hugh Jackman, Princess Diana, Robbie Williams and my parents. Eclectic mix there.
11. Three things I would love to do in my lifetime are:
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Return to Paris,
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See New York
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Take my husband for Chilli Crab in Singapore.
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nMB Training Dates
Please see below for upcoming nMB training sessions:
VIC - Basics - Tuesday June 1
QLD - Basics - Wednesday June 9
WA - Basics - Wednesday June 16
NSW - Advanced - Wednesday June 23
VIC - Networking - Tuesday June 29
Please email your interest in attending to your relevant state BDM.
