Industry News, Feb 2018

Brokers settled $200bn of loans in 2017            

The Advisor News – by James Mitchell 14:46 PM, 27 Feb 2018

Broker market share has continued to rise over the December quarter, according to fresh figures from MFAA.

Australian finance brokers settled $52.24 billion in residential home loans in the quarter to December 2017, the largest quarterly dollar value recorded for third-party origination since data collection commenced in 2012.

The latest home loan market share figure of 53.6 per cent is 1.7 per cent higher than the December 2016 quarter (51.9 per cent) — the highest December quarter figure, period-on-period, since data collection started in what is traditionally a slightly weaker quarter for broker share of market.

Overall, last year, Australia’s finance broker channel settled just under $200 billion in residential loans.

“This is a great result for brokers and is particularly important as it follows a period of increased external scrutiny of the industry and the introduction of a number of prudential measures which may have had a negative impact on the broker channel,” MFAA CEO Mike Felton said.

“I’m pleased to see the market share data clearly indicates that the broker channel is both healthy and an increasingly important part of the Australian economy. Brokers are constantly adapting to meet the changes ahead, with the single focus of continuing to provide an excellent and personal service that meets the customer’s needs.”

The MFAA chief noted that the past 12 months has seen the industry confronted with an unprecedented level of regulatory change focused on customer outcomes.

“This is not surprising given the systemic importance of mortgage broking to the Australian economy,” the CEO said.

“While our industry will always strive to continually improve the customer outcomes it provides, I believe the latest data is another strong affirmation of the service and solutions that brokers deliver to customers helping the industry to go from strength to strength.”

Research group Comparator (a CoreLogic business) compiles quarterly broker statistics by calculating the value of loans settled by 19 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments. MFAA releases these statistics each quarter.