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Commercial Finance Introducer
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already decided not to do business with can
find a back door to accessing their services.
But now many lessors have reduced their
broker panels significantly, without some
There is a huge
tolerance of broker to broker business, many
clients will find their route to market has
been closed off totally.
opportunity here:
But is this set in stone or is there room to
negotiate? If the chain was transparent, would there is good
a commercial mortgage broker, or a leasing
broker without the access to some tier one
quality business
funders, be able to use a leasing broker to
help their clients? This is something the
Association will work on and talk about
to be had by any
with lessors. It’s tricky as many lessors have
very valid reason for shunning this
funder brave
particular model and if there are to be any
changes, they will take some time to appear.
But we will be asking the questions.
enough to take it.
Commission claw backs
Commission claw backs were becoming very
hard for brokers to budget for. Although these With each member as a good will ambassador
had always been built in as part of a brokers’ for the work the Association does, the message
contract with a funder, the terms are becoming will gradually filter through.
stricter and enforcement is adopted more Next steps involve engaging the funders in a
readily. It is important to note that the dialogue to try and act as a mediator to put the
situation varies hugely across the market but brokers’ views across for all of these issues. We
where changes have been made periods have believe that by working with others in the
been extended and larger percentages clawed industry we can make a difference and improve
back. In practice, this made it almost things for brokers and funders alike.
business to a funder, chances are impossible for a small broker to budget for as Unfortunately, any change is going to take time;
a certain percentage of this will 100 per cent of commission paid could be results will take a while to filter through, but
be of a lower quality, purely to clawed back a year and a half after the deal had we’re hoping a slow drip, drip will gradually win
‘make up the numbers’. Good been written. around funders and other brokers alike. When
brokers aren’t necessarily the the green shoots appear in earnest and funders
ones who do the most NACFB quality who have left the market look to return, we want
business, but the ones who Although I’ve put this one last, this should to make sure that they see the NACFB logo as a
do the best business. In probably come top of the list. Being a member badge of quality, and brokers who wear that
short, many brokers were of the NACFB should open doors. We’re badge are the ones they want to do business with.
angry at having been cast hoping that after some work lessors should
aside as a ‘low quality’ make the distinction between NACFB brokers
introducer, when they and the rest of the market. Obviously we
were nothing of the sort. cannot have any influence over a funder’s
commercial decisions, but we do want to ask
Good brokers
Broker to broker them not to tar the whole broker market with
business the same brush. aren’t necessarily
Despite being a common But for this particular exercise, we need all
practice in other areas of members to get involved too. Chair of the
financial services, broker NACFB’s Leasing and Asset Finance division,
the ones who do
to broker business Stephen Bassett, asked those brokers who came
(where one broker along to the meetings to ‘bang the drum’; to act
the most
introduces his client to as ambassadors for good business practice and
another broker and the to make funders aware that you are an NACFB
commission is split) is member, that you do comply with a Code of
business, but the
shunned by the leasing Practice, and that the NACFB represents quality
world. Lessors have brokers. Many funders are not aware of who,
been stung by fraud among those brokers they deal with, are
ones who do the
in the past and are NACFB members; or what proportion of the
concerned that as business that is introduced to them comes from
best business.
the chain becomes an NACFB broker. Without that kind of
more tangled, knowledge, it’s difficult for any funder to
brokers they have appreciate the strength of the membership.
www.mortgageintroducer.com July/August 2009 Mortgage Introducer
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