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The Big Story: Colin Dreyer on lenders
Colin Dreyer tackles the question of shrinking lender options for brokers. But are the brokers behind that trend?
Video transcript below:
Reporter: Brokers seem to be sending more deals to fewer lenders. Could it be due to minimum buyer requirements or a bid to protect status with choice lenders?
Colin Dreyer, President, Verico Financial Group
Colin Dreyer: I think brokers are choosing their lender partners carefully. I think they are submitting to fewer brokers. I think the part of the reason is simply one, if you take into account the number of lenders we have lost over the last few years, there are fewer lenders around. I think the existing lenders do a very good job in serving the broker community and they are asking for a better partnership with individual brokers, they are asking for more loyalty, their compensation programs are geared to that and of course if you work significantly with a smaller group of lenders you will be able to get better service and drive better customers as a consumer which is ultimately the goal, good customer service, good product and good rate acquisition for the consumer. So I think all these are factors that have a bearing on brokers dealing with fewer lenders.
Reporter: Does a shrinking pool of lenders create a shrinking pool of products and in turn create disadvantage for clients?
Colin Dreyer: I don’t think so I think the reason being there is still a healthy stable of lenders that are supplying products to the brokerage community, so in turn it gives consumers the adequate choice that they need in terms of choosing the product and I think it gives the broker adequate responsibility to provide those choices to the consumers. So I think that we are good stead, there is a good stable of lenders out there, that brokers can utilise and give good choice to consumers.