Mortgage Aggregators: Notable Events
Four notable events that have taken place in the mortgage industry within the past 12 months that are specific to mortgage aggregators are the partnership between a mortgage aggregator and a fintech company, an increase on complaints about home loans, the launch of all-digital home loans, and a bill on best interest duty.
Mortgage Aggregator Partners with Fintech
- Finsure, one of the largest mortgage aggregators in Australia, announced the integration of its brand-new Infynity CRM platform with the mortgage broker product of ActivePipe, a fintech company in Australia.
- This is a notable event for the industry because the partnership addresses a critical challenge faced by mortgage brokers.
- Paul Smith, head of mortgage channel at ActivePipe, hinted that "brokers struggle to stay in touch with people in their database who they’re not actively writing loans for. More specifically, leads that need time to decide and customers after their loan has settled."
- In light of this, the partnership will see ActivePipe work in line with Finsure's highly-successful real estate communications platforms to create "meaningful and value-driven content and automated campaigns for every customer type and scenario" which will revolutionalize the Australian mortgage brokering industry.
- Speaking on the partnership, Simon Bednar, the general manager at Finsure, said: "The partnership is part of our overall strategy to empower our network of mortgage brokers to work even more efficiently, enhance communication channels, leverage our data and better serve our customers."
An Increase on Complaints About Home Loans
- The Australian Financial Complaints Authority (AFCA) reported that complaints about home loans rose by 20% within the last six months of 2019.
- This is a notable event for the mortgage industry because it shows the level of disappointment felt by customers toward brokers in Australia.
- Between this period, the financial services ombudsman received "2,201 complaints about home loans, averaging 367 per month", which Justin Untersteiner, chief operating officer at AFCA, referred to as a disappointing result.
- The report by Broker News hinted that 49 complaints were about mortgage brokers, 38 complaints were about mortgage aggregators, and 135 complaints were about mortgage managers.
- Speaking on the result, Untersteiner said: "There has been a dramatic increase in complaints about home loans. This increase has been driven by financial firms failing to respond to requests for assistance, the conversion of loans from interest-only to principal and interest and issues with responsible lending. Our hope by releasing this data is that we see improvements and the industry takes action to reduce the number of complaints that end up at AFCA."
The Launch of All-Digital Home Loans
- 86 400 announced the launch of all-digital home loans through brokers.
- This event is notable in the Australian mortgage industry because it is the first of its kind in the country.
- The digital home loan allows "Aussies to get approved for a mortgage up to six times faster than the big four".
- Melissa Christy, home loans lead at 86 400, hinted that the company is looking to be able to approve loans "six times faster than the average of the big four banks, so customers will know within 24 hours if they’ve been approved."
- The home loans are available through mortgage brokers and are facilitated through 86 400’s platform.
- 86 400 also partnered with "two mortgage aggregators, Vow Financial and Specialist Financial Group," to make it 2,800 mortgage brokers that offer 86 400's home loans in Australia.
Best Interests Duty Bill
- In February 2020, a bill containing the best interests duty for mortgage brokers passed the third reading.
- The bill implements "recommendations 4.7 and 4.2 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry by amending the National Consumer Credit Protection Act 2009 (Credit Act) and the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 (TCP Act)."
- This is a notable event in the industry because the bill requires mortgage brokers to consider the best interests of consumers in the discharge of their duty; and also addresses the conflicted remuneration for mortgage brokers.
- Speaking on the bill, Senator Richard Colbeck hinted that the bill will "ensure that consumers’ interests are prioritized when a mortgage broker provides credit assistance, as regulated by the National Consumer Credit Protection Act 2009." He added that the "period over which commissions can be clawed back from aggregators and mortgage brokers will be limited to two years, and passing on this cost to consumers will be prohibited."
To identify notable events that have taken place in the mortgage industry in the past 12 months, specifically those involving mortgage aggregators in the U.S., your research team commenced with an extensive search through media outlets and publications related to the mortgage industry such as Mortgage News Daily, National Mortgage News, and others. We sort to find recent developments related to industry news, mergers & acquisitions, IPOs, funding, announcements, and others. However, no notable event was identified from the U.S. mortgage industry within the past 12 months. We expanded our scope to include events from around the globe. While there was limited availability of information specific to mortgage aggregators in the mortgage industry, we were able to find four events in the Australian market that can be considered to be notable.