AFG launches digital mortgage lender
The large aggregation group has signed a strategic partnership with 86,400 to allow its brokers to access the neobank’s digital mortgage offer from next month.
The digital mortgage lender (named for the number of seconds in a day) first launched its digital home loan product in November 2019 exclusively through the broker channel. It has increased over the past seven months to reach $ 40 million in loans settled or awaiting payment.
In line with its aggregation agreements with Buyers’ Choice earlier this year (as well as its earlier agreements with Vow Financial Group and Specialized Finance), 86,400 has now joined the Australian Finance Group (AFG) lending panel, making its mortgage products available to the 3,000 brokerage members of the group.
The lender noted that the digital mortgage offer for brokers, which enables remote collection of VOI, electronic signature and digital expenses, would be available from August 10 (after accreditation and the system is in place).
He suggested that his “clean” home loan product would be particularly welcome for brokers at a time when turnaround times continue to blow.
Robert Bell, CEO of 86,400, said: “Brokers and clients want an easy-to-use app experience and a process that allows them to make a decision quickly, providing both the broker and the client with certainty and peace of mind, and that’s what we are. delivery via our digital solution.
“The partnership with AFG allows us to continue to help more Australians and brokers enjoy the benefits of the 86,400 home loan.”
A “much fairer” recovery structure
Speaking to The Adviser, AFG’s sales and distribution manager Chris Slater said the aggregation group had brought the lender into its panel at the request of its members, adding that “while we are moving towards the duty of the best interest, this has been a priority for us. to ensure that our brokers have access to the best products and services available on the market ”.
He said, “The whole idea of doing the [mortgage] Faster, easier and more transparent process just makes sense for everyone, and especially from the customer’s point of view.
Mr Slater was particularly pleased that 86,400 “really took the broker into account in the transaction”, suggesting that his clawback arrangements were “much fairer”.
He explained: “The recovery is pretty brutal at the moment. [For most lenders], if the loan is moved after 0-12 months, the broker loses 100 percent of his income, and between 12 and 18 months he loses 50 percent of his income.
“But 86,400 has developed a model where 100% payback is only good for the first six months, which we think is more reflective of the work that has been done on both sides. Then from six to 24 months, this is done on a pro rata basis. So the broker actually gets something for the work they do, ”he said.
Mr. Slater concluded: “One of our core values over the past 26 years has been to help our brokers bring competition into the marketplace, and [team members] at 86,400 are very passionate about competition, so they will fit in very well at AFG.
“We will continue to work closely with our brokers and funders, such as 86,400, to give them the best possible chance of competing for business. “
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Annie Kane is the editor-in-chief of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape, Annie also hosts the Elite Broker and In Focus podcasts and The Adviser Live webcasts. .