Plans are well underway for the 2010 National Conference with details and registration forms recently sent out to our brokers. The registrations have started to come in and we look forward to another great event on the Gold Coast next February. Early action will help you to lock in some cheaper air fares, so don’t delay.

Last month I reported that the National Consumer Credit Protection (NCCP) Package has been pushed back 6 months to 1 July 2010, with brokers now required to register with ASIC from 1 April prior to applying for an Australian Credit Licence in July. There is still a lot of detail to be provided to industry (with a session at the National Conference allocated to this topic) but further extensions to the start date cannot be ruled out at this sage.

The ACCC has announced its approval of NAB’s acquisition of the Challenger mortgage businesses. There now appear no impediments in the transaction completing before the end of the year as scheduled. The next and interesting stage will be to see how NAB deals with its controlled broker groups, other broker groups and its new lender “partners” going forward.

At its October Board Meeting, the Reserve Bank increased the Cash Rate by 25 basis points to 3.25%, the start of the tightening cycle as Australia appears to be coming out of the GFC. The Minutes of the Meeting reveal the Board, in considering a hold or increase play, concluded that “the risks in waiting had increased” as the economic outlook shows signs of improvement. Some commentators are tipping the Cash Rate could peak as high as 5% by middle 2010, with the next rise possibly being 50 basis points in November.

The concentration of new lending and deposit taking with the 4 majors continues with only small signals that the second tier banks and non-banks are able to penetrate some share against the big boys. KPMG has just issued a report which concludes that funding challenges could see the need for consolidation amongst the second tier banks in particular. Surely it is better for competition long term to have 2 smaller players merge now and survive than to see them fade away through an inability to remain competitive, giving the majors even greater dominance.

Until next time, stay well!

Gerald Foley - Managing Director

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nMB Top5 Performing Regions

In the month of August, Victorian brokers settled 38.7% of total nMB sales.  This represents an increase when compared to the FYTD result of 34.2%.  Ranked second, NSW brokers accounted for 26.6% of total sales - down this month when compared against the state’s past performance.  WA and Qld brokers also achieved an increase, whereas ACT brokers experienced a slight blip.

nMB Top5 Lenders

CBA ranked number one in August with a share of 29.2% of nMB’s total business – down 1.9% when compared to the 2010 FYTD result of 31.1%.  Westpac ranked second in August with 23.2% for the month, slightly down on their FYTD performance.  Both St. George and HomeSide lost ground in August whereas ANZ and BankWest experienced gains in their share of nMB’s business.  ANZ up in August to 12.9% and BankWest nudging out HomeSide for a Top5 spot in August at 5.2%.

nMB Sales Meetings

Featured suppliers for the October sales meetings included two of our Events Sponsors, St. George Bank and NAB owned MLC.  St. George covered their suite of products and explained their broker rating system.

MLC was formally launched during the October sales meetings as a new supplier to nMB’s panel.  MLC covered their range of insurance products including debt cover, life cover, disability cover, involuntary unemployment cover, general insurance and NAB term deposit cash management accounts.  The key message delivered by MLC was the importance of expanding a broker’s range of income streams.

We thank St. George and NAB for their continued support of the nMB Events Program.

nMB’s content focused on the recent updates to the ‘Broker Forum’ section of the Mortgage Broker Suite.  Approvals in Principle (AIPs) are covered in detail, highlighting the level of due diligence carried-out by each lender prior to issuing an AIP.  Please review this section, especially where your clients are relying on an AIP to bid at an auction.  A matrix detailing LVR Parameters by lender is also available.  This is a valuable tool, as lenders are constantly changing this critical credit policy.

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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 New Insurance Offerings

We know that for every home lost to fire, 4 are lost due to death and 48 due to disability.  What’s surprising is that whilst most people rush to insure their home and contents, very few consider insuring probably the most important aspect of being a new home owner…..the income used to service the loan.

Buying a home can be both exciting and stressful at times, so the notion of income protection can often be overlooked.

Parties involved in the transaction, Solicitors, Estate Agents, and Banks, typically perform their function and move on.  This often leaves the person facilitating the loan, the Broker, to broach the subject of income protection.

To assist you with the process nMB has recently added two new insurance options to our offering.  You now have a great choice of insurance solutions to provide your clients, which include the following:

- Australian Life Insurance – Mortgage Protection & Life Insurance

- Allianz Insurance – Home and Contents

- BT Insurance – Home and Contents

- MLC Insurance – Death, Disability and Unemployment Cover

For more information refer to the insurance section of your Mortgage Broker Suite. 

Please note unless licensed, brokers can only discuss these products under a “no advice” policy. For specific advice or recommendations clients must be referred on to the respective insurance professionals.

Sarah Zecevic - Lending Services Manager

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Upcoming MBS Updates

I am pleased to announce that the finishing touches are now being applied to the latest release of MBS which will be launched later this month.  Overall, there are over 40 enhancements built into MBS which span across every component from Online Reports to CRM and Business Tools.

A detailed summary of enhancements will accompany the release, however, as a sneak preview for Intell, I have listed a few enhancements, some which have resulted from broker feedback:

- Auto diarise fixed rate loan maturity dates based on product selection and settlement date

- Enhanced Tax Calculator – Now has the ability to calculate gross to net (released).

- Lender Performance Report - Similar structure to the current Broker performance report.

- Direct email from MBS - Launch email to your Clients direct from CRM.

- Word search feature -  A new search feature under the Client Notes section.

- Broker Benefits Section - Suppliers where nMB has been able to negotiate favourable pricing or service.

Kon Avramidis - Director, Operations

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Peter Wotherspoon, nMB Broker - Core Mortgage Brokers

1. My all time favourite food is:

Steak

2. The last book I read was:

The Man In The Mirror by Wayne Bennett

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

The Wiggles

4. My favourite saying is:

You Only Live Once

5. My Ideal Sunday involves:

BBQ with family and friends

6. My biggest inspiration is:

Parents

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

Vegas

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

Car

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

Greg Norman

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

- Go on an Ashes tour
- US Open,
- See a Bulldogs Premiership

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nMB November Sales Meetings

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

Brisbane              Tuesday 10th November
Sydney                Wednesday 11th November
Melbourne          Friday 13th November
Gippsland           Thursday 12th November

Sales Meeting registration will now take place online. For full details of this, please refer to the upcoming November Sales Meeting email to be sent by your nMB state BDM.

2010 nMB Annual Conference

Thank you to everyone who has already registered to attend the 2010 nMB Annual Conference. We are pleased with the positive response we have received!

Please click here for full details of the nMB conference.

Click here to register for the 2010 nMB Annual Conference.

Please ensure that you register by November 16 if you would like to pay via nMB commission deducations, or November 30 if you prefer to pay via credit card or direct deposit.