The value of the AMP designation was given a boost by research showing those consumers very satisfied with their mortgage broker are even more satisfied if that broker is an AMP.
A Maritz report presented by Managing Director Rob Daniel, polled both consumers and brokers, along with other industry participants. When mortgage consumers were asked about their satisfaction when dealing with mortgage brokers, 52 per cent said they were satisfied, while 38 per cent were very satisfied. However, if the broker they dealt with was an AMP, the very satisfied category jumped to 46 per cent.
While that was good news, when it comes to communicating with clients, brokers still have some work to do. According to the report, clients were most receptive to brokers who reached out to them four to six times per year, yet 67 per cent of mortgage holders said they received less than two communications per year from their broker and just nine per cent of brokers are touching base four to six times per year.
“Brokers are great at closing deals, but not as good at communicating with clients,” said Daniel.
When it came to brokers and lenders, the report revealed some disconnect between the two parties. When asked if lender profitability was increasing, 31 per cent of brokers said “yes,” while only 10 per cent of lenders agreed with the statement. Then when asked to list the drawbacks for lenders dealing with brokers, 45 per cent of lenders pointed to fraudulent applications, compared to only 21 per cent of brokers. On the issue of cost/compensation, only 13 per cent of brokers listed it as a drawback, while 29 per cent of lenders did so.
There was also some interesting feedback in the report concerning how brokers are paid. When asked what will happen to broker compensation in the next five years, 35 per cent of brokers said it would be more heavily based on trailer fees and 14 per cent more heavily based on fees charged to the consumer.
In terms of job satisfaction, 87 per cent of brokers agreed or strongly agreed that they were satisfied with their job, up three per cent from 2010. Their perceptions of the challenges they face include: lack of consumer awareness (44 per cent), lender mobile sales force (32 per cent), risk of lenders leaving (21 per cent) and too many brokers (21 per cent).