Australia: CBA changes broker policies

In response to recommendations from the Combined Industry Forum, CBA has announced it will be changing its volume-based tier system for brokers. Previously, CBA had 11 tiers with Diamond being the top tier for brokers write at least $15 million of mortgages and/ or settle at least 75 mortgages with CBA every year and score on at least three of their five quality metrics. CBA’s new system will only have two tiers (Essential and Elite), with qualifications based entirely on quality and complementary metrics.

Brokers will be reviewed by CBA on an ongoing quarterly basis instead. The new system will level the playing field for brokers who write smaller/ fewer loans with CBA. In addition, CBA has changed its stance on the de-accreditation of brokers who haven’t written a mortgage with CBA in the last 12 months.

Now the bank will only require brokers to complete training models so they are up to date on the lender’s current products and policies. Interestingly, priority tools (which were a key service offered to Diamond-tier brokers) are not the type of support brokers are most likely to value.

Data from RFi Group’s 2017 Broker survey shows that brokers are more likely to value additional training on products, policies and services over priority approvals, although neither are amongst the top types of support brokers want to receive from lenders they work with.

Upcoming Events
See all upcoming events
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance