Mortgage Professional Australia magazine Issue 10.10

WORDS OF WISDOMTOP DOGS SHARE THEIR SECRETS

PERFECT PITCHTHE KEY TO SUCCESSFUL SEMINARS

SMART SOFTWARETHE NEW BREED OF USEFUL PHONE APPLICATIONS

www.brokernews.com.auISSUE 10.10

We reveal the brokers in this year's 100 club

Our multimedia edition features on-camera interviews with the industrys biggest players. Visit Brokernews.com.au/MPA to hear their thoughts on the hottest issues facing mortgage brokers.

MPA 2.0

BROKERNEWS.COM.AU 1

EDITORS LETTER

Cream of the cropOne of the main benefits of the new licensing regime is the enhanced professionalism it will bring to the industry. A side effect of this is that part-time brokers and those not operating by the letter of the law will inevitably fall by the wayside. While this may lead to a reduction in broker numbers, it is for the best if it means that those introducers left are of the highest standard. The effects of the GFC have already streamlined the broking community to some extent; while no-one likes to see businesses fail, brokerages that have weathered the storm are enjoying the increased opportunities.

Several of the countrys top brokers cited this as a reason for their stellar performance this year in our Top 100 Brokers rundown. The quality of submissions this year was extraordinarily high entrants needed to have settled more than $40m of home loans to even qualify for the list and more than $86m to make the top 10. This high level of achievement and the number of new faces paint an encouraging picture for the future health of third party lending in Australia, so long may it continue.

As well as lauding the countrys top brokers, this issue of MPA also contains pearls of wisdom from some of the industrys most prominent figures. Some of the tips are simple, others more philosophical, but all are useful for helping you to perform at the top of your game.

Elsewhere in the magazine we discuss market issues in our roundtable report, tell you how to host successful seminars for your clients and look at how the latest wave of smartphone applications are transforming the property market as we know it.

Enjoy the magazine and all the best for a busy month. Barney McCarthy Editor

10. 10

issue

CONTENTS

cover story

10. 10

issue

12 past and presentMPA digests the forecasts of economist Phil Ruthven

BROKERNEWS TVEXPERT PANEL DISCUSSIONVisit our website now to see a range of clips from our newest roundtable event covering: The impact of the election Rate rises and competition Innovation and white-label mortgages

36 MPA Top 100 Brokers 2010Australias elite intermediaries revealed and profiled

www.brokernews.com.au

CONTENTS

10. 10

issue

NEWS ANALYSIS10 No longer solely the preserve of tech nerds,

smartphone apps could revolutionise the property-buying process

FEATURES22 Four home finance figureheads chew the fat on

licensing, industry associations, first homebuyers and more

30 Hosting seminars for first homebuyers and property investors could lead to increased business volumes. MPA tells you how to host a successful event

48 The mortgage markets most esteemed share the secrets to their success

COLUMNS34 David Garner explains why responsible lending

requirements are a positive thing for the industry

PROFILES16 Leader: AFG MD Brett McKeons success isnt just

limited to the mortgage market

60 Lender: Greg Charlwood from debtor finance specialist Bibby Financial Services highlights the importance of diversification

LIFESTYLE20 A day in the life of... Lisa Montgomery,

Resi Mortgage Corporation

64 My favourite things: Steven Heavey, St.George

20

This magazine is printed on paper produced from 100% sustainable forestry, grown and managed specifically for the paper pulp industry

BROKERNEWS.COM.AU 4

EDITOR Barney McCarthy

COPY & FEATURES

CONTRIBUTORS Andrea Cornish, Laura Carew

PRODUCTION EDITORS Jennifer Cross,Moira Daniels, Carolin Wun

ART & PRODUCTION

DESIGN MANAGER Jacqui Alexander

DESIGNERS Paul Mansfield, Lucila Lamas

SALES & MARKETING

NATIONAL SALES MANAGER Rajan Khatak

BUSINESS DEVELOPMENT MANAGER Lisa Tyras

ACCOUNT MANAGER Simon Kerslake

MARKETING EXECUTIVE Kerry Buckley

MARKETING COORDINATOR Anna Keane

TRAFFIC MANAGER Stacey Rudd

CORPORATE

DIRECTORS Claire Preen, Mike Shipley

CHIEF OPERATING OFFICER George Walmsley

PUBLISHING DIRECTOR Justin Kennedy

ASSOCIATE PUBLISHER Rajan Khatak

CHIEF INFORMATION OFFICER Colin Chan

HUMAN RESOURCES MANAGER Julia Bookallil

Editorial enquiriesBarney McCarthy tel: +61 2 8437 4790

[email protected]

Advertising enquiriesRajan Khatak tel: +61 2 8437 4772

Sales [email protected]

Simon Kerslake tel: +61 2 8437 4786Account Manager

[email protected]

Subscriptionstel: +61 2 8437 4731 fax: +61 2 9439 4599

[email protected]

Key Media www.keymedia.com.au

Key Media Pty Ltd, Regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia

tel: +61 2 8437 4700 fax: +61 2 9439 4599Offices in Singapore, Hong Kong, Toronto

www.brokernews.com.au

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies

of work should be kept, as MPA magazine can accept no responsibility for loss

BROKERNEWS.COM.AU 6

NEWSMORTGAGES

Credit regulator Australian Securities & Investments Commission has been forced to grant extensions to the official NCCP registration period for a number of industry parties, it has been established. Though the deadline for registrations under the new national licensing regime passed on 1 July, ASIC has confirmed that extensions have been granted, and it is in the process of considering more. As of 4 August, ASIC had granted 19 parties extensions under the National Consumer Credit Protection Act to allow them to lodge registrations under the new regime.

The regulator has also confirmed it is still considering a number of other applications for extensions, and expects more to be added to the list of those that have been granted extra time.

ASIC would not elaborate on the nature of the parties concerned, or the reasons for extending their registration period. However, at least one medium-sized business had to have its licence registration period extended, following a mistake where the business had failed to register its loan writers as well as the business when intending to apply for credit representative status.

Under the legislation, companies appointed as credit representatives in effect cant do any loan writing under new laws, as this has to be done by human beings or natural persons under the common law legislation. These natural persons, therefore, need to be individually accredited by ASIC.

ASIC grants registration extensions

MFAA backs DEFs

AFG has invested in a new IT platform that will help it pay commissions three times faster. The aggregators $1m purchase of Oracles Exadata technology will allow it to process payments in less than six hours, as opposed to the former 19 hours.

The purchase also improves performance speed by three times for brokers using the web. AFG says it also significantly reduces the risk of system outage, and provides a comprehensive sales reporting tool for larger member groups via a new business intelligence system. Brokers will also see improvements in the product qualification area, particularly when there are a lot of products returned.

Performance is key for the future, said AFG director Malcolm Watkins. Testing shows that combined transaction time will be reduced from an average of 97 hours per day to less than 12 hours. As there are an average 500 concurrent users transacting in any given day, brokers will save around one-and-a-half hours a week. Watkins said that could equate to savings of $75 per week for every broker.

AFG makes bold claims on pay

how quickly AFGs new technology will allow it to process

commission payments

6hrs

The MFAA has indicated its support for deferred establishment fees (DEFs) as part of its formal response to ASIC in regard to the regulators consultation on unfair and unconscionable exit fees. MFAA claims that DEFs are a mechanism allowing the non-bank sector to offer increasingly competitive interest rates to borrowers.

A deferred established fee is applicable when a lender gives the borrower the option of deferring the establishment costs of the loan (which most lenders require to be paid upfront) in return for a lower rate, said MFAA chief executive Phil Naylor. There is no requirement to pay the fee at all if the loan continues beyond a specified period; usually 35 years.

Naylor warned that any regulatory intervention on DEFs could ultimately be to the detriment of consumers.

BROKERNEWS.COM.AU 8

NEWSECONOMY

26million

BROKERNEWS.COM.AU 8

Self-managed super funds are increasingly investing in property, according to new figures. SMSF administrator Multiport has revealed that, out of the $1.1bn invested in funds it administers, 17% was allocated to property either directly or through trusts and funds as of 30 June.

This brings SMSF property investment levels to their highest level since December 2008. Multiport CEO John McIlroy attributed the increase to the better performance of listed property trusts. The figures also revealed that SMSF asset allocation is still dominated by investment in shares, with Australian shares taking up 40% of SMSF assets (down from 42.6% in March). Cash and short-term deposit holdings accounted for 21.4% of SMSF assets.

Property comes into favour for SMSFs

The population of Australia has increased by just under a tenth between 2004 and 2009, according to new statistics.

The Australian Bureau of Statistics (ABS) has revealed that the estimated resident population in Australia at the end of June 2009 was 21.96 million an increase of 1.83 million since June 2004. That equals a total population growth of 9.1%, and a yearly average of 1.8%. Should population growth continue at this rate, Australia would have a total population of 23.93 million in 2014 and 26 million by 2019.

The ABS figures also revealed that just under one-third of the countrys population lived in NSW as of last June, with the Northern Territory and ACT containing the fewest people. In terms of population growth, Queensland saw both the largest and fastest growth. There were also around 92,000 more women than men in Australia last June.

Interest rates are unlikely to change until November at the earliest, according to RP Data.

Tim Lawless, senior research analyst at RP Data, said that an extended period of interest rate stability is in store.

All the fundamentals apart from inflation are looking subdued, he said. There may be some increase in consumer goods over the next few months, which could spur the RBA to act after the next CPI data is released in October. However, that means theres very little chance of an increase before the Monetary Policy Boards November meeting.

This will provide some welcome certainty to the housing market, Lawless added, particularly for owner-occupiers.

The renewed certainty over rates may even translate to a small bounce in first homebuyers, he said. However, price growth is still likely to be relatively flat for the next six months at least, and were likely to see the balance of the market swing back towards buyers.

Mortgage Choice spokesperson Kristy Sheppard agreed an extended period of rate stability would be good news for borrowers.

This will be a great relief for anyone repaying a variable interest loan or approaching the end of their fixed-rate term, just as it will be for those who are looking forward to jumping into the market during spring. A rate rise would surely have discouraged many people from acting on their property plans, be that selling up or purchasing. Now there is another reason to move ahead with confidence.

Extended period of stability ahead

Population growth continues apace

projected Australian population by 2019

according to the ABS

*The Adviser Third Party Banking Report 2010. Commonwealth Bank of Australia ABN 48 123 123 124. CBACM2011_B

At Commonwealth Bank, we want to ensure you get the right support to help your business grow. It all starts with commbroker.com.au which gives you all the information you need to lodge a home loan application, plus access to useful tools including real-time loan tracking 24/7. We also provide the most advanced training and education programs in the industry.* And when you do need personal assistance, our Relationship Managers will give you the one to one support youre looking for.

To find out more about how our service can help yours, call your Relationship Manager today.

If its support you want, its support youll get.

CBACM2011_B_268x210_3rd Party Banking Press.indd 1 8/20/10 12:39 PM

BROKERNEWS.COM.AU 10

NEWSANALYSIS

Appytalkbathrooms, a price guide, auction data and pictures. The comprehensive program also provides detailed suburb profiles, a repayment calculator and video how-to guides.

The app allows users to contact an agent or lender directly from their iPhone, but the bank moved to allay fears that the program would be cutting brokers out of the equation by describing itself as channel agnostic and saying it simply helped users find a property and wouldnt influence their decision to use an introducer or not.

Another interesting app launched for the property market is by Planning Alerts. Utilising an existing augmented reality app called Layar which allows users to see what restaurants, shops and amenities are around them, an add-on allows users to see what is being knocked down and built in different communities. This program could prove useful not only for homebuyers, but also for any investor clients you have.

Finally, MPAs very own website Broker News has launched its own app to make sure you can access all the breaking news from the mortgage industry. As well as the live RSS news feed, the free program also features a repayment calculator. MPA

Over the past couple of decades, a number of technological developments have made life easier, from mobile phones to the internet. So-called smartphones such as Apples iPhone have opened up a whole new world of opportunity, giving people access to a wealth of information at the tap of a finger. One major selling point of this new generation of phones is the applications or apps available downloadable programs which utilise the phones internet, camera and GPS to provide real-time information on everything from the nearest place to eat to how to check whether a shelf is level.

A new wave of these handy programs is focused on the mortgage and property markets. Last month, Commonwealth Bank launched its Property Guide app which uses augmented reality technology to allow potential buyers to access a range of rich data. Put simply, by using the app and the iPhones camera, users walking down the street can view the past sales history, current property listings and recent sales of 95% of residential properties in Australia. By pulling in data from analytics company rpdata.com and property portal realestate.com.au, users can even evaluate the profile of a property including the number of bedrooms and

iPhones arent just for tech geeks willing to queue around the block for the latest model, they could be about to change the property market as we know it, says Barney McCarthy

Appytalk


COLUMN ECONOMICS

Past

of a double dip in world GDP by saying that if it does happen, it is likely to occur in 2011, but wont bring a negative year for world GDP, just a growth of around 1.8% instead of 4%.

Global perspectiveIn terms of the worlds 30 largest economies in terms of purchasing power parity, joint CIA/IBISWorld statistics place Australia in 17th position with a 1.2% share. The US, China and Japan occupy the top three spots, with a burgeoning India not far behind. In terms of economic growth, Australia sits just outside the worlds top 10 in joint 11th, alongside the US, Iran and Japan. When it comes to public debt as a percentage of GDP, Australia occupies a virtuous position according to Ruthven, with just 19%. Only Russia (7%) has a smaller percentage, while at the other extreme, Japan is in the perilous situation of public debt account for 192% of GDP. Similarly,

Everyone has their own opinions on what 2011 and beyond holds for the Australian economy and the mortgage market, yet when economists dare to poke their heads over the parapet, many pundits are quick to shoot them down without offering their own forecasts. A recent presentation by IBISWorld founder Phil Ruthven caught MPAs eye with some bold predictions for the future, as well as some comprehensive statistics of the housing scene to date.

Ruminating on the financial year to the end of June 2010, Ruthven revealed that the total value of Australias nine million homes was $4,080bn but that 4.2% of properties were unoccupied for various reasons, including use as holiday homes. Just over one million housing loans were written, a 4.6% improvement on 2008/09, and total lending was $280bn, a 10% fillip. Looking at the wider economic picture, GDP rose 2.1%, the fastest rise among large OECD nations. Ruthven calmed fears

Nothing splits broker opinion quite like the ruminations and predictions of economists. MPA recently sat in on a thought-provoking presentation by economist Phil Ruthven entitled Now What? Where to for the Economy & Mortgage Market, and shares the salient points

and present


COLUMN ECONOMICS

when it comes to budget deficits as a percentage of GDP, Australia posts a figure of -3.1%, far healthier than the double figure readings from Ireland, the US and the UK. Looking into 2011, India is expected to record the worlds biggest economic growth, although Australia is a sold ninth with a forecast of 3.4%.

Household financialsOf particular interest to mortgage brokers was a section of the presentation about household income and expenditure. The average Australian household has an income of $127,370, 12.7% of which is accounted for by rental or mortgage payments and other dwelling costs. This isnt the largest outgoing though that goes to taxes and social contributions with a 13.5% share. Financial and insurance services make up 8.7% of the picture too, a useful fact for brokers to have in their arsenal. Interestingly from a social commentary point of view, food takes up 7.2% of the average Australians budget less than entertainment and gaming at 7.5%.

When it comes to household assets and debt, housing plays a far more central role, accounting for 42.2% of the average Australians balance sheet. Household savings as a percentage of gross household income are encouragingly hovering around the 4% mark having dipped into minus figures between 2002 and 2006.

The housing marketLooking at the housing market, Ruthven acknowledged the shortage of housing supply facing Australia, a result of a static rate of construction over the last four decades, despite population growth. Another potential problem facing the domestic market is the overvaluation of house prices. The Economist suggests Australias property is over-valued by as much as 61.1% the highest figure of any country in the world although Ruthvens stance is closer to the 44% mark. This is in stark contrast to Japan, where property is undervalued by as much as 34%.

In terms of the split of total dwelling finance, established dwellings currently account for 41.9% of the market, refinancing 15.5% and new purchase just 10.2%. Investment dwellings continue to take a larger share of the market, with the sector now worth 25.7% of total dwelling finance, up from 8.7% in 1990. Looking at the type of housing loans being

taken out, variable products continue to be the darling of the Aussie borrower, worth a staggering 87.5% of all loans, compared to just 7.8% and 4.7% for revolving and fixed loans respectively. The type of lender responsible comes as no surprise either, with banks controlling 91.3% of housing finance, while building societies, wholesale lenders and others fight for the scraps. The geographical split is as expected too, with NSW (32.1%) edging out Victoria (24.1%) and Queensland (20.5%).

In the financial year to the end of June 2010, the mortgage broking industry generated revenue of $1.37bn and contributed 0.06% of Australias economy as a percentage of GDP. It employs over 12,000 people and is expected to grow by 5.1% over the next five years.

Future thoughtsGazing into his crystal ball, Ruthven expects there to be around 1,000,000 housing loans in the current financial year, a slight decrease on the 1,045,000 in the 12-month period just completed, but then an increase in 2011/12. He also expects total lending to remain fairly static at around $275bn. The average loan for an established dwelling is forecast to creep up slightly to $275,000. Ruthven also envisages GDP growth to recover well, with the possibility of an increase in excess of 4% while unemployment could edge downwards to 5% and he expects the credit markets to free up a little. Perhaps Ruthvens boldest prediction is that the global shares market could experience a one-year surge of up to 45% at some stage in the next few years as pent-up demand is released. MPA

Phil Ruthven is the founder and chairman of IBISWorld, an international corporation providing online business information, forecasting and strategic services. He is also a director of other companies, advisory boards and charitable organisations. He addresses around 75 congresses, seminars and conferences each year and has done so for three decades. His involvement as a communicator takes him around Australia and overseas into the Asia-Pacific, North America and Western Europe. Ruthven is a science graduate and added to these qualifications with further studies in management and economics at various universities and institutes, and was a Rotary awardee to the US in the late 1960s.

Bio

Variable products continue to be the darling of the Aussie borrower, worth a staggering 87.5% of all loans


COLUMN ECONOMICS


BUSINESS PROFILELEADER

Even Australian Finance Groups (AFG) telephone on-hold music leaves you in no doubt as to the aggregators prowess. A recorded message reminds the caller that AFG is now responsible for 11% of all new residential lending in Australia not bad going for an institution only founded 16 years ago. Its easy now to observe AFGs position and assume it was always thus, but as Brett McKeon explains, things werent always so easy. We were the first aggregator in the Australian mortgage market and it was an uphill struggle for the first few years as we didnt have a lot of working capital, he remembers. We didnt have consumer support either, initially, as people were used to dealing with the Big Four banks and they resisted our model.

Track recordBefore co-founding AFG with Kevin Matthews, McKeon had already spent eight years in financial

ManforallseasonsBrett McKeon is the founder and managing director of aggregating superpower AFG, but his expertise isnt confined to the mortgage market, as Barney McCarthy finds out

We were the first aggregator in the Australian mortgage market and it was an uphill struggle for the first few years

services in a variety of roles. After a year of travelling, he worked with AMP in a self-employed agent role in financial planning and insurance and was responsible for helping the bank grow those divisions. McKeon soon struck out on his own though, setting up an independent practice West Australia Insurance Services which later diversified and became AFG, after McKeon and his fellow directors identified the fledgling mortgage broking sector as an area with massive growth potential. Investment solutions provider Sealcorp was making waves at the time, and McKeon admits he replicated part of its model, when originating AFG in 1994 with fellow founding directors Malcolm Watkins and Bradley McGougan.

The aggregator began in Perth, but within a few years McKeon had decamped to Melbourne to help establish AFG on the east coast. As McKeon says, the nascent AFG model didnt hold much sway



with the banks to begin with. At that time, the market was controlled by three or four banks who had money invested in their branch network, he recalls. There were a lot of old-school bankers who didnt like change or the notion of control moving away from the banks and it took a fair while for them to change their view of the aggregation model.

McKeon also remembers juggling many roles in the early days. Malcolm and I were responsible for all functions of the business, from sales and administration right through to accounts. It was hectic at the time, but I look back at it fondly now. AFGs foray into Melbourne was set against the backdrop of a recession and McKeon says a third of the city was plastered in for lease signs. Of the first 1,000 applications we received, half of them were refused because the values didnt stack up. It wasnt a pleasant period for the market.

Sitting prettyAll of this is a far cry from where AFG now sits atop the aggregation pile. McKeon claims AFGs forward-thinking perspective has allowed it to continue to prosper. We had a clear vision of where the Australian mortgage market was headed and invested widely based on that, he states. We were pre-emptive in terms of installing compliant systems way ahead of licensing and we are two or three years ahead of our rivals in terms of technology.

McKeon welcomes the enhanced era of professionalism that regulation will bring to the mortgage market, and welcomes anything that will help banish rogue intermediaries from the industry, but is mindful of any over-governance. He predicts that around 80% of brokers will seek their own individual licence to begin with, but expects the split to be closer to 50/50 in time when introducers tire of the regulatory burden.

AFG recently rebranded its mortgage manager division to AFG Home Loans in a bid to become more appealing to the consumer and to try and provide a genuine alternative to the big banks, but

Of the first 1,000 applications we received, half of them were refused because the values didnt stack up

wont be marketing directly to consumers as it still intends to champion the broking sector. McKeon says the aggregator is on the cusp of returning to the securitisation market. It has also dipped into a subdivision-style property concept where it has purchased land in WA to split into lots, but that AFGs core focus will always be aggregation.

While McKeon says the mortgage market in general is still affected by a number of issues including low consumer confidence, rising interest rates and a fluctuating property market not helped by the dampening effect of the election he expects strong fundamentals underpinning the industry to help provide the base for an improving situation moving into 2011, assuming there are no further problems in the US and Europe.

Jack of all tradesDespite his impressive track record in the mortgage industry, McKeon has not confined his business pursuits to the world of financial services. He was involved in the stock market flotation of Queste Communications, the first Australian company to provide a Voice over Internet Protocol (VoIP) solution in 1998. It was Australias most profitable initial public offering (IPO) that year, rising to $1.05 within weeks after being listed at 20c. McKeon also sits on the board of solar energy company Sungrid, admitting he is a self-confessed greenie.

His passion for sport also manifested itself in a two-year stint as a stakeholder in A-League soccer team Perth Glory. Despite his love for the game, he decided to pull out from the soccer club due to the lack of profitability. All the focus on soccer in Australia goes on the Socceroos, so there isnt much of a spotlight on the domestic game, he says.

I couldnt see the A-League even breaking even in the next seven or eight years, so I decided to end my business interest in the club. One thing is for sure, whether it be in the mortgage aggregation market or elsewhere, it seems that McKeon has the Midas touch. MPA

In his own words+ Family: Married to Connie, with two children; Lachlan (12) and Morgan (9).

+ Hobbies: I love sport, particularly AFL, soccer and hockey, coaching junior teams in the latter. I also enjoy good food and wine, and travelling with my family.

+ Business motto: Treat other people how you would like to be treated. I always look to be fair and pragmatic in business and have a win/win ethos. The end consumer has to have a win first, but we want the aggregator, broker and lender to all win too.


COLUMNADAYINTHELIFEOF...

Lisa Montgomery, new CEO of Resi Mortgage Corporation, juggles a senior management role with an omnipresent media profile

A day in the life of

0530hIf I dont have a really early morning meeting

and when the weather allows, Ill catch the

ferry into Circular Quay and walk through the

city to our office at Ultimo. The walk kick-

starts my brain, keeps the body moving and

reminds me of what a great city we live in.

0700hWhen Im not travelling, its breakfast at my

desk with a side order of the news of the day

which I love. Then onto emails and sorting

out the priorities to be actioned. I also review

the media clips from overnight and then re-read a couple of weekly reports before the

morning meetings.

0830hInterview with a potential franchise relationship executive, as we look to recruit

another key person to provide more support to

our hard working franchise network.

0900hMy one and only coffee for the day, just as I

head into our regular weekly meeting. I also

review the new business leads and look at

phone and web activity.

1000hSenior team meeting. We hear all the updates

on the status of our current projects we find

ourselves already diarising dates and deadlines

up to Christmas and beyond.

1130hA quick phone update with our major funder,

Advantedge, on whats planned for the next

few months.

1200hThe lunch of champion dieters: grilled chicken

breast and cucumber.

1300hGo through my emails and return some calls.

Speak with one of our franchisees in Queensland about an upcoming event theyre

hosting and check through content, event run

sheet and marketing arrangements.

1400h Jump in my car and head off to the Sky Business studio to be part of its live rates

reaction program.

1530hMake a few calls in the car on the way back

to the office.

1600hBack in the office for a photoshoot with the

AFR for an upcoming story.

1700hCatch up with Andy Grace for the Night Show

on WSFM. Andy is hilarious and he combines

humour with the serious aspect of finance.

1715hEmail, phone at this point there are a few

last minute boxes to be ticked for the day, but

its mainly spent planning and prioritising for

the day ahead.

1930hArrive home. Hopefully, my wonderful husband has thought about dinner and that

it contains something better than chicken

and cucumber.

1931hA glass of red in hand and a look at Sky News,

then a download of both of our days over

dinner, a few chores and the thought of doing it

all again tomorrow!

We find

ourselves already

diarising dates and deadlines

up to Christmas and beyond

Lisa Montgomery


FEATUREWORDSOFWISDOM

Ever wonder how other people manage their day-to-day stresses and time pressures? MPA asks some of the industrys brightest lights how they avoid burnout

Tips from the top



FEATURE WORDSOFWISDOM

Could there be anyone that handles the stress of being extremely successful better than Sir Richard Branson? He has somehow managed to balance being one of the worlds greatest entrepreneurs with enjoying life. According to Sir Richard, theres no secret.

As he once quipped: There are no rules to follow in business. I just work hard and, as I always have done, believe I can do it. Most of all, though, I try to have fun.

High performers know how to not only handle stress, but also use it to their advantage. Because the fact of the matter is that not all stress is bad. In small doses, stress can actually be a little fun hence the popularity of thrill-seeking activities like bungee jumping or riding rollercoasters.

When the brain perceives physical or psychological stress it sends bursts of chemicals such as cortisol, epinephrine (also known as adrenaline) and norepinephrine into the body. It causes the heart to beat faster, your senses to heighten, an increase in blood pressure and a spike in blood glucose.

The short-term buzz can be the kick in the pants you need to meet a deadline, pull an all-nighter at the office or go the extra mile to make your business a success.

Meeting these kinds of challenges can in turn give you a sense of accomplishment that makes you feel good. Health experts indicate it can also improve heart function and build the bodys resistance to infection.

But as with most things in life too much of it can actually be damaging. Long-term stress, whether it be job-related or outside the office, can lead to high blood pressure, heart disease, exhaustion and depression.

Thats why you need to learn how to switch off those flight-or-fight hormones and take steps to improve your health overall. Suggestions include finding a hobby, exercise, massages, deep breathing, meditation, sleep, laughing more, drinking less and quitting smoking. MPA talked to some of the mortgage industrys most successful

figureheads to find out the most pivotal events in their careers (arguably the most stressful moments), how they handle stress and what they do to reduce stress-inducing issues like time management.

James SymondExecutive director, Aussie Home LoansAs executive director of Aussie Home Loans and former president of the MFAA, James Symond has been one of the most

influential figures working both in and for the mortgage industry.

He got his start early and hit a dramatic turning point in his career aged 25 years when he took over the leadership of Aussies large national sales team.

I look back (30 kilos later) and while I still cant believe I was responsible for so much at such a young age, it does go to show that it is not the age of the car but the miles under the bonnet that counts, he says.

One of Symonds greatest professional risks was in leading the sales team as Aussie evolved from being a mortgage manager to a mortgage broker eight years ago.

Now it seems a masterstroke considering the environment and our success; however, it was still a risk at the time as our business was already a household name and profitable, but we knew we were stuck in third gear. Symond tries to keep everything in perspective when stressful situations

Long-term stress, whether it be job-related or outside the office, can lead to heart disease, exhaustion and depression



Lisa MontgomeryChief executive officer, Resi HomeloansLisa Montgomery has been the face of Resi Homeloans since 2004 and has almost 30 years experience in financial services. Four of

those years were spent at Infochoice, where as CEO she brought a public company to profitability and to sale an experience she describes as being the most dramatic turning point in her career.

The best advice she ever received was from her father, who imparted the importance of speculating to accumulate. That has helped me get across the line in more than just a few situations, most of them with a positive outcome, she says.

According to Montgomery, pressure doesnt come in just one form. There are varying degrees in a variety of situations and keeping your cool comes with experience and maturity. Broadly speaking, in pressure situations I use my tried and trusted PR skills, then I evaluate later breathing space leads to better decisions.

Montgomerys love of music has been a valuable outlet for her. She loves singing and admits there is something wonderful and liberating about belting out a tune.

I have also taken to walking to and from work, although not in winter. The sounds and the sights of the city in the early morning and evening are a clear reminder not to take life too seriously.

Montgomerys secret to time management is keeping on top of her email inbox. I receive and send an extraordinary amount of mail so I endeavour to keep my inbox at around 20 messages, dealing with the priorities and delegating what I can its important not to let it get out of control.

When it comes to tasks and priorities, Montgomery sticks to the tried and true to do list. She also recommends setting goals.

Its so easy to work in the business rather than on it, so allocating time for strategy and growth objectives is essential. Its a constant battle to stay focused when there are so many competing priorities. Thats where my whiteboard comes in handy its an interactive visual reminder.

arise, and as he gets older spending time with family and friends has become more valuable and a great way to de-stress, he says.

His secret to handling time management is to have an awesome assistant and a good wristwatch. According to Symond, the best piece of advice hes ever received is: Nothing changes if nothing changes.

John FlavellGeneral manager, NAB BrokerJohn Flavells career received a massive boost last year: he was appointed general manager for NAB Broker, which effectively put him in

charge of Homeside, MLC, Allianz and Vivid. Flavell says the biggest risks hes taken

professionally have coincided with the most dramatic turning points in his career. I have changed industries, changed cities and sought new opportunity. In all of these instances I have taken risks. I have been prepared to put a lot on the line, I have backed myself and held myself to account for the outcome, he says.

I have always done this on the back of strong well-formed beliefs that the upside was worth the risk and that if things did not work out as intended then I would grit my teeth, get on with it and focus on getting through the tough stuff and creating the next opportunity.

Flavell says the best advice he ever received came from his father, who told him that the shortest distance between two points was a straight line. That has held pretty true and served me well, he says. Simple advice from people you respect and love is very often the best.

When it comes to time management, Flavell recommends you prioritise the key things that only you can do. Everything else can be done by others if need be. You need to first do things that nobody else can do.

An avid fan of water sports, Flavell lets off steam by surfing, swimming or sailing and he admits to spending too much time messing around on the guitar.

Its so easy to work in the business rather than on it, so allocating time for strategy and growth objectives is essential


There are varying degrees in a variety of situations and keeping your cool comes with experience and maturity

Allan SavinsChief operating officer, ResimacIn the last year, Allan Savins has steered Resimacs retail launch, Hemisphere Financial Solutions. But thats not the first challenge

Savins has faced in his professional life. He left a 17-year banking career to become involved with a start-up non-bank, non-conforming lender, right at the emergence of that market.

Savins says he handles pressure by reminding himself to look at the bigger picture and look for the little accomplishments that have been achieved along the way for inspiration. He also likes to take a two-hour walk on weekends to clear his head and plot the upcoming week.

Savins has some solid advice for email addicts. Dont be controlled by your email inbox, otherwise you become distracted from your priorities. Have a robust tasking system and strong self-discipline. When you cannot meet a deadline, communicate it in advance to set expectations and alleviate the pressure build.

Other advice? No matter where you go or how successful you become, never forget your roots and who you are.

Chris AcretManaging director, SmartlineThe greatest risk Chris Acret ever took professionally was starting Smartline, in 1999. It has proven to be a sound move the business has

consistently been recognised as one of the best franchises in the country, both by Topfranchise.com.au and the Australian Mortgage Awards.

Acret says he stays focused on the job at hand by not being reactive all day, just responding to emails or the phone. I still hardly use a mobile phone, which gives me a lot more time, he says.

Acret keeps cool under pressure by focusing on the things he can control and not worrying about the things he cant. But when the pressure rises, he lets off steam by getting some exercise.

Surfing is great as it is physical and somehow clears your head. So is yoga. If all else fails, beer can help.

Acret admits to checking comsec.com.au and coastalwatch.com.au a little more than is



necessary and says he also enjoys thinking about gardening for some reason.

Peter HaywardHead of distribution for mortgages, CitibankThe biggest professional risk Peter Hayward has taken was to leave primary teaching to join a bank.

All I knew about banking at the time was that was where my wage was deposited, Hayward says.

Hes been in the financial industry since 1997, and at Citibank for the last five years. Managing a high-performing sales team during the financial crisis was one of the greatest challenges Hayward has faced.

To come out the other side with our respect and integrity intact is very satisfying. I believe the GFC was a terrific learning experience for all involved, he says.

Hayward handles stress by sticking to a mission and purpose. He adds that a little sense of humour can go a long way as well. And the best way to let off steam is to spend time with people outside of the industry, he says. Talking shop is irrelevant to them and is a great way to escape.

Peter LanghamCEO, Scottish Pacific BenchmarkThe best piece of advice Peter Langham has ever received is as follows: Picture what failure looks like when embarking on a new venture

it allows you to progress without fear.Langham is no stranger to risk. He started

Benchmark Debtor Finance from scratch, which was merged with Scottish Pacific in 2005.

His secret to time management is to prioritise, and to stay on top of workload stress he makes task lists and diarises activities.

Ray HairCEO, PLANIn 2001, Ray Hair was the national BDM for Fortis Insurance. When it was acquired by a much larger organisation he was offered an ongoing role, but chose to

join a small company that was just two years old, had 24 employees and was a new entrant into the mortgage broker aggregation market. PLAN Australia went on to be an industry leader and success story. Ive enjoyed every day of this exciting journey, he says.

The best advice Hair ever received is that in business it is not necessary to have the best or a perfect strategy; it is more important to effectively and successfully execute your chosen strategy. Do not get distracted by competitors or so-called opportunities; focus on implementing your strategy.

Hair contends that there is no secret to time management, but he does credit his PA with helping him stay on track. Focusing on the big picture and not letting the little day-to-day incidents build up is another way Hair manages to keep stress in check.

Good food, good wine and great friends (with the occasional spot of exercise to keep it all in balance) helps Hair overall.

Steve LambertChief operating officer, Vow FinancialAfter 22 years of working in mainstream banks, Steve Lambert switched gears in 2000 to join a small mortgage aggregation company. In

2008, he was appointed chief executive officer of National Brokers Group.

Last years merger of NBG with The Mortgage Professionals and The Brokerage to form Vow Financial has been one of the biggest risks of Lamberts career.

His secret to time management is to do lists and a strong dose of delegation and review. Meanwhile, he handles pressure by looking at things realistically and being tenacious.

I believe the GFC was a terrific learning experience for all involved



Kristy SheppardSenior corporate affairs manager, Mortgage ChoiceHighly sought after for her commentary on everything from the Reserve Banks rate decisions to the latest

statistics on borrowers, Kristy Sheppard is familiar with the stresses of being in demand and in the hot seat. Her secret to time management is a departmental spreadsheet that lists daily tasks with whose responsibility it is to fulfil each item.

That aside, she says her other secrets are fast fingers, the ability to multi-task and a keenness to execute tasks quickly with as much quality input as possible.

The working day of a PR professional is frantic and can change course at any time. We have to be ultra-organised, she says.

Having a great team, confidence, innate optimism and knowing which resources to utilise help her stay cool under pressure, but Sheppard says she also knows when to take a break.

Over the years Ive realised a positive mindset can change any situation, so its not in my personality to panic, she adds.

Sheppard does admit to spending the odd spare moment looking at whats out there in the housing market. Im a bit of a property perv. Im looking to upgrade at the moment so I enjoy poring over email alerts for properties that are on the market.

Bridget SakrChief commercial officer, GenworthBridget Sakr says getting through the rollercoaster ride that was the financial crisis, and coming out the other side stronger and wiser has been

one of the most dramatic turning points in her career. It was a time when our customers were facing some harsh realities. I had to make some tough decisions too, and what that time really proved was that partnership really is the essence of a good working relationship. It reaffirmed all that I held true about the way I work and the way that my team works.

Sakr uses her sense of humour and some deep breathing to keep cool under pressure. She also

recently started an exercise program.I find that those things really help to relieve

stress and the pressures I am under on a constant basis. When Im exercising, all I think about is the next squat or push up. It clears the mind and gets the endorphins going, she says.

Getting frustrated simply wastes energy, so I would much rather exert the energy into thinking things through before reacting, and then express my well-thought out opinion/responses calmly, and in a timely manner.

According to Sakr, time management is not just a work-related issue she applies the same tactics to all aspects of her life.

I need to be organised all the time, have the right support system, prioritise appropriately and delegate where possible. To do this, its important to include and talk to people wherever you can, she says.

Make sure you get and give the full context of a situation, so all involved know exactly what is expected of them and what the objective is. It saves time and avoids the time wasted through miscommunications. Meeting the broader challenge of being a working mum and being a successful leader at Genworth has made me much more versatile. MPA

Over the years Ive realised a positive mindset can change any situation


FEATURESEMINARS

First homebuyer and property investment seminars can be a great way to introduce new clients to your business, but not if youre afraid of stepping up in front of an audience. Andrea Cornish reveals the key to overcoming public speaking jitters

Unless youre planning on speaking at a nudist camp, imagining your audience naked is probably not going to help you give a great seminar.

There are lots of tricks to help people overcome their fear of public speaking, but according to communications expert Brett Rutledge, the key is to practise. Prepare. The more you know your material, the more likely you are to overcome nerves, he says.

Rutledge knows his way around a podium. In 1998, he became the youngest World Champion of Public Speaking and one of only five to hold the title outside North America.

And while mortgage brokers dont need to be elite communicators to give great seminars, it does help to learn a few tips from the best.

Dealing with nervesAccording to Shyness and Social Anxiety Treatment Australia, the most commonly reported social phobia is public speaking.

Mortgage brokers talk to people for a living, but most of that communication is face to face. Stepping in front of an audience, whether they are potential clients or a group of your peers, can be a nerve-wracking experience for anyone.

But its okay to have a little anxiety. Experts say that being a little nervous is actually a good thing. It can give your presentation a little more

energy and help you avoid sounding like youre droning through a lecture that youve given a hundred times before.

Judith Field, founder of Direct Speech, is another one of Australias foremost public speaking gurus. She agrees that practice makes perfect.This is obvious, but most people spend 90% of their time writing their presentation and 10% practising. It should be 50:50.

She suggests that you practise as if youre in front of a real audience. And remember to breathe deeply and fill your lungs with air, she says. The increased flow of oxygen will calm you down and help you focus.

And lastly, she suggests you get rid of the voice in your head. This is the most important tip. It means you are acknowledging the fear and deciding to let it go. As a result, you can focus on what you are delivering and not things like, they are all looking at me or what if I go blank?

Communication breakdownUnderstanding how communication works will give you a good foundation on which to build your speaking skills.

Rutledge says it boils down to four ingredients: the audience has to understand you; agree with you; care about the message; and take action.

All four things have to be there for you to be effective, he says.

Letstalk


FEATURESEMINARS

Judith Field, founder of Direct Speech, outlines some of the biggest blunders people make when presenting to an audience:

Having technological difficulties and being thrown by it

Making sexist, racist or politically insensitive comments

Talking too long

Providing attendees with too much detail

Big-noting yourself

Trying to sell yourself too much and too obviously

Denigrating others

Turning around to the PowerPoint

Filling in the PowerPoint with too much detail and too many points or irrelevant data

Standing up with your fly open or buttons popped

Talking with hands in pockets and jingling money or keys

Biggest mistakes

The more

you know your material, the

more likely you are to overcome

nerves


Its also incredibly important to present people with facts, emotions and symbols together. He explains: No one gives a toss what an interest rate is; they care what it means to their mortgage.

So while its important to give people factual information, you also need to explain what it means to them.

And when it comes to emotions, Rutledge says brokers should both understand the feelings of the people they are talking to, as well as sharing their own. If you want people to be excited, youve got to be excited yourself, he adds.

Acting too professional can actually work against you. If you try to hide your emotions people will assume you either dont care, youre up to something, or both, Rutledge says.

During the GFC, every broker should have been telling their customers how frustrated they were, he adds, by way of example.

And as for symbols, brokers need to tell their audience a story, as it gives people a way to remember what the message is.

Be yourselfAccording to Rutledge, Cate Blanchett is an academy award-winning actress because she doesnt look like shes acting.

But for the layperson, focusing too much on skill and technique can really become a problem.

Most people are not that skilled, he says. But thats okay, as long as youre just yourself. Thats the only thing you can pull off with any credibility.

He cautions brokers to be genuine in trying to help people with the information theyre providing. People will respond much more warmly to you if youre not trying to sell them anything.

And while no one expects you to be a comedian, humour is an effective element of communication. Theres a place for humour in everything, Rutledge says, even at a funeral. Not only is it a great way of learning, but it shows people that

Mortgage Choice broker Raymond Teh has been running seminars through his office since May 2005. He admits that standing in front of a crowd was nerve-wracking at first, but after getting a few seminars under his belt, it became second nature.

As a new business, the seminars proved to be a valuable tool in helping Teh build his database. However, Teh advises brokers not to expect an immediate increase in the number of people walking through the door.

The lead time in running a seminar and reaping the benefit could range from six months to two years. For

instance, a first homebuyer may attend your seminar but not commit to purchasing for a while due to lack of savings, unsuitable properties, etc.

While its no longer one of the brokerages core marketing activities, Teh still runs seminars on a monthly to bi-monthly basis.

In the beginning, Tehs seminars attracted 50-plus attendees. Since then, the numbers have progressively dropped to between 15 and 20. He

suggests that perhaps the decline in numbers is due to an over-saturation in his area.

Another change over the years has been Tehs collaboration with strategic partners. While he has run the seminars in conjunction with buyers agents, real estate agents and property developers, since 2006 hes been partnering with a neighbouring law firm, Masu Lawyers, which he believes has added more value to the attendees.

Teh says the drop-out rate in people registering for the seminar to those actually attending can be close to 50%. To minimise the discrepancy, he sends clients an automated email on the same day they register as well as giving them a courtesy email and call two days prior to the seminar. And if someone does not turn up, Teh suggests emailing them with details of the next event.

He also recommends brokers choose a smaller site if they are not expecting a large number of attendees, otherwise it can look embarrassing if you have a capacity for 100 people and only two people show up.Also consider access to parking and proximity to a well-known landmark.

Case study: Raymond Teh

It was nerve-wracking at first, but after getting a few seminars under his belt, it became second nature

Raymond Teh

Judith Field


FEATURESEMINARS

youre human. But the key to humour is to make it relevant dont tell a joke just for the sake of it. A better way is to incorporate humour through a story. A little self-deprecation is also effective.

I often say that the fastest way to make friends is to make fun of yourself, Rutledge says.

And at the end of the day, content matters more than delivery, and good structure will save poor delivery.

When a mortgage broker gets up in front of an audience, they know its not what they do for a living, Rutledge says.

Avoiding distractionsThe best way to keep the presentation running smoothly is to save question time for the end.

If you take the time during the presentation to answer specific queries, you risk losing the other members of the audience. Some brokers choose to serve light refreshments at the end of the presentation, which gives people a chance to come and chat afterwards. That also gives the broker an opportunity to answer questions, and perhaps a chance to better win them over as a client.

Shyness and Social Anxiety Treatment Australia recommends presenters stay calm if the information theyre presenting is challenged. The association suggests presenters thank the audience member for raising the question or comment. And in the face of criticism, presenters should resist the temptation to become defensive and argumentative. When challenged, try to find some common ground with the person this will help you appear open minded.

According to Rutledge, handout material is also better saved to the end. Giving people fact sheets and information beforehand opens the door to cognitive overload, he says. The brain tends to choose the visual over the audio.

And the last thing you want is for people to be hung up on the spelling mistake on page three, rather than listening to what youre saying.

PowerPoint presentations can also be distracting, Rutledge says, and recommends keeping the information per slide to a minimum.

And lastly, how do you avoid the biggest distraction of all? Picture all the attendees fully-clothed. MPA

I often say that the fastest way to make friends is to make fun of yourself

Brett Rutledge


Bravenewworld

David Garner looks at what licensing holds for the mortgage market and why responsible lending requirements are good for the industry

The lending landscape changed on 1 July, 2010 for the better, with the introduction of new responsible lending criteria setting a best practice benchmark for mortgage brokers across the board. While the most successful mortgage broking companies have had their own minimum standards in place for a long time, there has been too much scope for variation across the industry.

The tighter regulation is an extremely positive step and makes brokers more accountable than ever before. The biggest change is that brokers must show they have made enquiries to determine whether a loan is unsuitable for the client. While the phrasing might sound a little strange, it requires the broker to investigate the clients repayment capacity and to prevent people from obtaining loans that they cant really service.

Satisfying this responsible lending requirement will be a three-stage process, starting with making reasonable enquiries into a borrowers needs and objectives. Next, brokers must investigate the borrowers financial situation, and take reasonable steps to verify that situation. Importantly, brokers must be able to demonstrate that the client can repay the loan without experiencing substantial hardship which can vary from one person to another. As defined by the new legislation, substantial hardship occurs when a person can only repay the loan through the sale of assets, such as the clients home, rather than through income.

Brokers will be able to assess substantial hardship by using a loan affordability calculator. But remember that borrowers should not be

disadvantaged by any conflicts of interest. Under the new requirements, comparison rate schedules are abolished, although you must still show comparison rates in advertisements that mention repayments or interest rates. All brokers must be registered or appointed as a credit representative, and must have been registered by 30 June 2010, apply for a licence by 31 December and obtain that licence by 30 June 2011.

However, an education campaign is needed to ensure brokers clearly understand the measures required to consistently assess a consumers capacity to pay a loan, how best to provide a preliminary or final credit assessment and what constitutes reasonable inquiries to verify a consumers financial situation.

The value of such a campaign becomes even more important when you consider the penalties for failing to meet the new legislative requirements. Brokers could face having their credit licence revoked, million-dollar fines and/or imprisonment

for up to two years.Simply registering for a licence under

the legislation is not enough. The new responsible lending obligations will

mean brokers will have to make major changes to application processes. The first thing a broker should do is create a lending process that can be documented and audited. The best

place for more information is the regulatory guides on ASICs website.

COLUMN LICENSING


COLUMN LICENSING

At Club Financial Services, we are working with Acompli compliance consultants to ensure our business and our brokers meet all facets of the legislation. They have been able to provide an unbiased review of our application process and they are helping to simplify compliance for us.

While compliance is essential, its worth remembering that there is a lot more to being a successful broker. A good broker will provide a transparent and tailored service that educates their

clients about the best options for them, while also meeting all of the legislative requirements.

These are the main elements that Club is aiming to instil in a new generation of brokers who will complete our second annual Club Academy, to be run in Adelaide in September. The Academy aims to help participants meet the new legislation but also to develop the skills needed to provide a financial service to suit the varying needs of their clients. Its also designed to help us source new brokers who subscribe to Clubs core principles and set a benchmark for standards across our national network. The Academy is an intensive two-week course and successful attendees may be offered a position within the Club group or a new franchise territory (with the added incentive of no franchise fees).

Participants from the first Academy held earlier this year said the program gave them the confidence that they would be meeting industry standards, while also learning a range of skills to help them generate business leads and start writing loans. Tristan Crafter from Club in Burnside, Adelaide, says it was great to see an organisation embracing compliance while also ensuring that attendees learned the business and people skills needed to successfully operate in the industry.

Another Academy participant, Michael Hinde, who is now a finance consultant at Clubs Prospect office in Adelaide, says the Academy was an essential part of becoming established as a broker, and all for negligible cost. The Academy not only taught me the basic skills of a mortgage broker, but also highlighted the importance of building a business model that allows me to generate a significant income not only from writing loans, but from financial planning and accounting referral arrangements, he says.

The chance to see how the Club Needs Analysis can be used as a fact-finding tool and to ensure youre complying with the new legislative requirements is invaluable. It was also great to hear from a range of lenders about the wide range of products available.

The enthusiasm of this new generation is inspiring.

Training academyBrokers also should review those lending procedures and adjust them to meet the three key elements of the responsible lending requirements. As providers of credit, we all have a greater responsibility for making sure our clients needs and borrowing capacity are properly evaluated. Part of assessing that capacity includes checking the borrowers current loans and their credit history, as this will help you assess their needs and recommend the most suitable product.

Finally, youll need to create responsible lending processes that can be documented and you will need to train and monitor all relevant staff. They should be briefed and understand their role in achieving compliance that its not just the risk managers responsibility. Its important to also know there are expert advisors out there to help.

Weve already seen the industry go through rocky times in recent years with the rationalisation that followed the collapse of global markets in September 2007. As economic conditions started to ease, it was the more sophisticated mortgage brokers who could maintain their businesses and whose services are now in demand. Now, as funds have become increasingly available, the pendulum is swinging back to brokers and non-bank lenders.

Subjecting the industry to tighter regulation will enable brokers to capitalise on that pendulum swing and ensure a brighter future based on higher, consistent standards. If we all work together to raise standards, make better lending decisions and take the industry to the next level in conjunction with the responsible lending requirements, then we will put the broking sector in a stronger position than ever before. MPA David Garner is director of Club Financial Services

David Garner


COVER STORYTOP100BROKERS

Forget those supposedly tough market conditions this years Top 100 list was as keenly contested as ever before.

Barney McCarthy counts down the elite



It may seem bizarre, but many of you actually welcomed the GFC and the subsequent impact it had on business

Crisis, what crisis? That seemed to be the attitude of our top-performing brokers this year as entries came flooding in for our prestigious Top 100 Brokers list. As licensing dominates the agenda for introducers, plenty of talk in the market has surrounded diversification and the need for brokers to add other elements to their core home loan business. Yet if our figures are anything to go by, plenty of you seem to have your hands full with residential mortgage transactions.

It may seem bizarre, but many of you actually welcomed the GFC and the subsequent impact it had on business. A number of our elite brokers cited the decreased competition as a boon to their business proof that every cloud has a silver lining.

Despite the supposedly dwindling numbers of brokers, we were inundated with submissions this year and there was a marked increase in loan volumes from our 2008/09 survey. Last year, settling $40m of home loans would have seen you placed 78th on our list: this year, that wasnt even good enough to make the Top 100. It is a testament to the ongoing health of the broking community that more than 100 brokers submitted that level of business in 2009/10.

While there are plenty of familiar faces, there is also a staggering amount of new blood in the mix 49 of our Top 100 are new entries this year. Some of these are returning faces who didnt enter last year, but there is also a healthy percentage of up-and-coming talent, an encouraging sign for the future success of our industry. There was also a fairly even geographic split of entries. Victoria can lay claim to being the top state for top brokers with a quarter of the Top 100, but NSW was hard on its

heels with 24 elite intermediaries. The rest of the country was well represented too, with Queensland (19), Western Australia (15), South Australia (11), ACT (4) and Northern Territory (2) all hosting brokers at the top of their game.

And the winner is...The Top 10 had a familiar feel to it this year, with four of the brokers having featured in the upper echelons 12 months ago. Special mention must go to Alex Shumsky from Consolidated FS who leapt a huge 52 places to 10th position. Two recent winners also made the Top 10 this year, with Colin Lamb from Mortgage Solutions Australia coming in third (winner 2008) and Katrina Rowlands placing sixth (winner 2006).

Australias top mortgage broker was Wendy Higgins from Mortgage Choice, making it back-to-back triumphs after her success last year. Two of her colleagues also made the list, with Julie Mahony landing 44th spot and Christine Albon placing 65th.

MPA would like to thank all those brokers who took the time to enter the Top 100 this year and congratulate all those who made the list. See overleaf for the full list of brokers and profiles of the top 10 brokers.

25VIC NSW QLD WA SA ACT NT

24 19 15 11 04 02State-by-state:

The spec: Entry for the top 100 list was open to all accredited brokers and loans had to be originated solely by the individual entrant in the FY2009/10. Entries were then verified by lenders, aggregators and franchisors to ensure the integrity of the submissions.



10(62) Alex ShumskyConsolidated FS

Oakleigh, VIC

Settled: $86,508,288

What makes you a good mortgage broker?Its all about the service you provide, making sure you take care of the customers needs and ensuring they get the right loan with the right bank.What has been the most challenging aspect of 2009/10?Getting used to all the licensing and NCCP requirements.

What has been the most positive aspect of the last financial year?The first homebuyer grant from the federal government and relatively low rates. What are your targets for 2010/11?To stay in the top 10 next year.What do you enjoy doing outside the office?Relaxing, spending time with family and personal training sessions.Top tip for other brokers?Get back to the basics and work hard. Dont concentrate on the figures, more the processes.

Top brokers have the ability to perform through the most difficult times.

While the past year posed challenges to the industry in general, for many groups business was strong, supported initially by solid first homebuyer appetite and later by investor demand. Nevertheless, a continually changing economy and market environment had its impact with many brokers

reassessing their businesses in order to remain competitive. It is this type of key trait that underpins professional brokering operations. Westpac considers these brokers as its key market segment and we strive to be the lender of choice for professional brokers and their clients. The industry is rapidly evolving and realising its full potential as a highly-professional services sector. National Consumer Credit Protection legislation is but one of the many factors that will help to elevate the standing of the profession, and the professional broking groups within it. Consumers need to feel confident in their financial decisions and brokers play the very important role of trusted and independent advocate, helping to advise, mentor and facilitate their customers needs. Ongoing recognition of those professional brokers at the frontline of the industry is key to the industrys continued evolution. Only through benchmarking the industrys top performers can we establish best practice that we can all aspire to. Were proud to sponsor MPAs Top 100 Brokers; we see great value in supporting those brokers that are collectively building a better mortgage industry through continued dedication to their profession and an underlying client-focused approach. Congratulations to those brokers that have made this years Westpac and MPA Top 100. I encourage all brokers to learn from the success of others and to push ahead with the ongoing improvement of your business. I wish you all the best for the year ahead. Sincerely, Huw Bough General manager Westpac Mortgage Broker Distribution

Recognising the industrys leaders

Huw Bough


09(new entry) Nick CapleChoice Capital

Albert Park, VIC

Settled: $87,495,948

What makes you a good mortgage broker?A decade of experience and always putting client service first. What has been the most challenging aspect of 2009/10?Doing more work than ever before and receiving less commission from the banks. What has been the most positive aspect

of the last financial year?A shortage of lenders in the market has meant that experienced and professional mortgage brokers are more highly valued and sought after. What are your targets for 2010/11?To grow the business and seek to cross-sell other products to our client base. What do you enjoy doing outside of the office?Bike-riding and property development. Where do you see yourself in 12 months?Doing much of the same working hard. Top tip for other brokers?Obtaining product knowledge is vital. It really pays to be professional and courteous at all times.

08(9) Gerrard TiffenTiffen & Co

Kingston, ACT

Settled: $93,605,473

What makes you a good mortgage broker?I try to be a little bit inspiring to our customers its important to them that we are passionate about what we do. What has been the most challenging aspect of 2009/10?A lot of the compliance procedures brought in this year have proved tough. Banks

introducing credit scoring has been a real learning curve too some of the decisions have been baffling. Whereas before most files could be completed in one go, now they have to be revisited three or four times. What has been the most positive aspect of the last financial year?Its great to be in a role where you are meeting new people every day and receiving referrals when youve done a good job. What are your targets for 2010/11?I dont tend to set myself business targets, but Ive got a lot of personal goals I would like to achieve such as going on holiday with the family and finishing the house we are building. At work, I just try and always do the right thing by my clients. What do you enjoy doing outside the office?Ive recently developed a passion for adventure racing multi-sport events that include mountain

Its great to be in a role where you are meeting new people every day and receiving referrals when youve done a good job



valuable to our clients as we understand the process. Its not just a case of sourcing a cheap loan for the client and sending them on their way.What has been the most challenging aspect of 2009/10?There hasnt been anything too bad, although sometimes it seems as if banks are looking for reasons not to do business rather than just admitting they are struggling for funding. Volume hurdles are a worrying development too the banks are asking us to prioritise them ahead of |the client, which is dangerous. What has been the most positive aspect of the last financial year?We won a state-wide award acknowledging our real estate operation which was good. Awards arent the be all and end all, but they help clients to recognise the cream of the industry. The fact that the market has been tough has actually been good for us in that there has been a drop-off in the number of mortgage brokers.What are your targets for 2010/11?We are looking to establish other bolt-on businesses to our core focus that will help us to generate leads. There are only two of us writing the business with minimal support and I still managed to write more than $95m. I was recently acknowledged by Choice as the first broker in ACT or NSW to write more than $400m with it, which I did in just over five years. What do you enjoy doing outside the office?Im currently building a house and Im enjoying choosing the decor and furnishings with my wife. I also enjoy training dogs for obedience competitions and Im currently working with two cavoodles cavalier King Charles spaniel and poodle crosses called Montgomery and Sebastian. Top tip for other brokers?Investment in yourself is vital, both in terms of experience and education. If you are just starting off as a mortgage broker, its probably best to work with someone and learn from them first rather than setting up on your own. I also think there has been too much focus on commission in our industry, which encourages the wrong kind of people to join.

biking, kayaking and running across a range of terrain. Top tip for other brokers?Having a point of difference is important, something that makes your proposition different from your competitors. It is also vital to establish good relationships with your referrers not just occasional contact, but a daily phone call. If you have common interests and they are actually a friend, your relationship will be more fruitful.

07(7) Michael OReillyMOR Mortgage Options

Mawson, ACT

Settled: $95,839,731

What makes you a good mortgage broker?We are only a relatively small operation, so we cant compete with some of the larger franchises on scale, but we focus on the client. We specialise in property investment finance and I think the fact we are investors ourselves makes us

I think the fact we are investors ourselves makes us valuable to our clients ... its not just a case of sourcing a cheap loan for the client and sending them on their way


06(14) Katrina RowlandsMortgage Success

Wollongong, NSW

Settled: $96,631,545

What makes you a good mortgage broker?My integrity, empathy, dedication and innovation. What has been the most challenging aspect of 2009/10?Trying to keep everything going. It has been one of the most demanding years I have ever had.

What has been the most positive aspect of the last financial year?There has been a really solid move towards professionalism industry-wide. What are your targets for 2010/11?Im very proud that we have had huge results for 12 years now, so I really hope to keep that up. I also want to have a bit more fun as well. People often ask me about retirement and I tell them that I will retire when I am not having fun anymore. I also have goals that I would like to achieve in my personal life: I want to concentrate on my health and get back into training with others. What do you enjoy doing outside the office? I love deep-sea fishing. I love spending time with my children. We have a big backyard with lots of animals, so I enjoy getting out there and playing with my kids. Where do you see yourself in 12 months?Heading a much larger organisation and working towards increasing broker numbers. Spending more time on my business rather than in my

business ... the next 12 months will be a time to refresh long-term friendships within the industry. I have been extremely busy over recent years and have lost contact with many of my friends. Top tips for other brokers?Remain passionate, want to make a difference and create industry relationships that are going to support your goals. It is also important to constantly look for and seek out new challenges. If I had stopped at what everyone else thought was my capacity, I would not be where I am today.

05(new entry) Phillip NguyenIFG Home Loans

Malaga, WA

Settled: $96,806,966

What makes you a good mortgage broker? Having good relation-ships with customers and banks, support from BDMs who are committed to their job and paying attention to what the customer needs. Being a good listener who pays extra attention to detail is key too, along with going the extra mile for clients.

What has been the most challenging aspect of 2009/10? Changes in the global economy have had an impact. It has also been challenging keeping up to date with the numerous policy changes from the banks and withstanding the interest rate rises.



What has been the most positive aspect of the last financial year? More opportunities for me as many brokers have left the profession. I now have a better market share and more selective customers. What are your targets for 2010/11? The rest of 2010 will see the tail end of the GFC, but 2011 will be a time to go for commitments. What do you enjoy doing outside the office? Recreational activities with the family and socialising.Where do you see yourself in 12 months? Hopefully still broking.Top tip for other brokers? Stay committed, even during the tough times. Persistence is the key to success. Be a good listener to properly identify the needs of your clients.

04(new entry) Greg SterlandAustralian Property Finance

Charlestown, NSW

Settled: $102,030,613

What makes you a good mortgage broker?Professionalism is probably the most important thing. We also try and provide a level of service that keeps clients coming back and we keep in contact with them regularly to make sure they are happy throughout the process. We also offer financial planning and

Changes in the global economy have had an impact. It has also been challenging keeping up to date with the numerous policy changes from the banks and withstanding the interest rate rises

accountancy services if the client requires them. Having 37 years of experience as a banker certainly doesnt hurt! What has been the most challenging aspect of 2009/10?The only issue has been coming to terms with the new legislation as it is not fully in place yet. I dont think it will have a significant impact on our business though as we have already been doing the things required. We have no fear of legislation, it has simply reinforced that we were doing the right thing all along. What has been the most positive aspect of the last financial year?The low interest rates experienced last year created a positive progression of clients interested in investment property. Even the subsequent rate rises havent really dampened this appetite.What are your targets for 2010/11?Ensuring all our licensing requirements are fulfilled and maintaining our level of professionalism. We are also planning a revamp of our brand and logo as its important to keep moving these things forward. Making sure the clients are satisfied is the most important thing. What do you enjoy doing outside the office?I travel extensively and go on holiday four or five times a year. I also enjoy skiing, golf and bike riding. Maintaining a healthy work-life balance is essential for brokers as you spend a lot of time stuck behind a desk.Top tip for other brokers?If you dont have a genuine desire to help people, nor a commitment to professionalism, you cant succeed in this industry. It is also important to invest in your own business which some brokers wont do until they have enough clients.



03(4) Colin LambMortgage Solutions Australia

Doubleview, WA

Settled:$106,771,475

What makes you a good mortgage broker?A good broker cares about their client, understands what theyre going through when buying a property or needing finance, and explains all aspects of the finance, from the time of application and throughout the whole process to settlement and beyond.

What has been the most challenging aspect of 2009/10?This has been a year like no other. The main challenge has been a tapering off in the property market, which has seen a drop in prices in certain areas. The top end has come off with not a lot of sales occurring, and theres been a slowdown in the number of first homebuyers. This has seen a reduction in the number of overall property sales and hence a reduction in the number of loans. What has been the most positive aspect of the last financial year?The banks are still lending and they have money to lend. There seems to be a bit more confidence in the banking sector with a few banks coming back into the market and putting some pressure and competition on the Big Four. What are your targets for 2010/11?The main target for 2010/11 is for settlements to be at least $10m per month, along with building

out number of brokers we are planning on adding another 10 brokers this year.What do you enjoy doing outside the office?I love to spend time with my wife Christina and my three daughters, Dana, Jessica and Chelsey, especially watching them play netball and basketball. Watching the Dockers play this year has been enjoyable as well and I very rarely miss a game. Summer time is usually spent at the beach. Where do you see yourself in 12 months?I see our business transitioning into a much bigger business with a lot more brokers and loan writers. I will be taking a lot more time working on the business setting up referral relationships for our brokers. Top tip for other brokers?Education. Make sure you keep up-to-date with the banks policies and procedures and treat a client how you would like to be treated. Communicate you can never over-communicate with both clients and referral sources.

02(8) Justin DoobovIntelligent Finance

Bondi Junction, NSW

Settled: $116,923,796

What makes you a good mortgage broker? We go the extra mile for every client we deal with. We also take the time to listen to what our clients require and build them a financial structure that satisfies not only their current needs, but future needs.


What has been the most challenging aspect of 2009/10? Managing the 30% growth of the business has been the most challenging. We are waiting for a new CRM package to be delivered later this year, so in the interim we have had to do a lot of manual processing. What has been the most positive aspect of the last financial year? To watch our office culture evolve. I have built an amazing team that has even surprised me at how client-focused they can be. Most clients comment to me that the service they receive from us is the best they have ever experienced. Everyone loves coming to work and the camaraderie is fantastic. What are your targets for 2010/11? To increase our loan settlements by over 50%, to enjoy a little more work-life balance and to ensure that Intelligent Finance continues to be an enjoyable environment to work in. What do you enjoy doing outside the office? When Im not at work I love spending time with my wife, building things such as my new cocktail bar and spending time with my friends discussing new ventures that they want to invest in.Where do you see yourself in 12 months? I would have to say that I see myself doing what I am doing now. I do see myself working more on the business and less in the business though. This will be a good step for me as well as propelling the business even further forward as my team can take on more responsibility.Top tip for other brokers? Dont put a client with a lender just because they have the cheapest interest rate. While the interest rate is important, it is only one of the components that make up the right loan. You can save a client a lot more money by having the right loan structure with the right lender than you can by having a cheap rate with the wrong loan structure and wrong lender.

01(1) Wendy HigginsMortgage Choice

Glenelg East, SA

Settled: $141,344,304

What makes you a good mortgage broker?Being able to get the appropriate finance approved for all clients. Buying a home or an investment property is a big financial decision and the right finance is an integral part of the transaction. Looking at clients long-term needs is part of

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Documents

Mortgage Professional Australia magazine Issue 10.10