Executive director says lengthy lender turnaround times are still a big challenge for brokers
Brokers are still facing blown-out turnaround times from certain lenders as borrowers choose attractive cashback offers and record low interest rates. But this challenge is exacerbated by the disparity many borrowers face when going through the broker channel instead of dealing with lenders directly.
Those were the views of Connective executive director Mark Haron. He told MPA that despite the aggregator working to bring about change over a period of months, some lenders still haven’t demonstrated enough commitment in order to close this disparity and even out the playing field.
“I think many of those lenders have had plenty of time to address that and it’s still an outstanding issue,” he said.
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Connective will soon be announcing a new tool that could help brokers in this challenge, he added, explaining it would “enable brokers to more accurately measure lender turnaround times to be able to disclose that to customers.” This would help clients “understand the challenges of dealing with certain lenders at the moment.”
Needing to set customer expectations around lengthy lender turnaround times is certainly nothing new. MPA has spoken to several brokers who have made this an essential part of their interactions with clients – an example in which best interests duty applies not just to price and structure but to timeframe and urgency.
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However, the need for aggregators to build this within their tech is a telling sign of just how big this problem is for brokers as they get used to the new compliance landscape of BID – another challenge that brokers are also facing according to Haron.