Originally established in Brisbane in 2002 before expanding to Caloundra in 2004, trading under the name of Cooper Financial Connections (Sunshine Coast) it  will open an office servicing Sydney and the ACT this month.

Managing Director Peter Cooper said it was an exciting time of growth for the business.

“An opportunity presented itself to build the business interstate and we are very much looking forward to offering our tailored information on borrowing and wealth creation opportunities to  a new client base,’’ Mr Cooper said.

The office’s Managing Partner, Michael Auer , is the former head of Customer Securitisation for St.George Bank .

Mr Cooper said broking firms and banks had redefined their relationship in recent times as the major banks struggled to attract new mortgage business through their branch networks.

It is common knowledge now that the majority of new business written in banking is through qualified Mortgage Brokers (often with Credit Adviser status).

“More than ever before we have the banks coming directly to us because they know we are out there on the street representing people from all walks of life.

“The banks are competing hard against each other which is healthy, however banks do not have up to date information on competitor products or services.

For example , does a clients  bank  have a “  market disruption clause “  in its documentation or will that bank  remove that clause on  a case by case basis , or does the competitor bank down the road not have this clause in its documentation at all.

“That’s where an accredited broker is vital, someone who can do the groundwork for a client so they can compare mortgage products and make an informed decision about staying with their existing bank or choosing an alternative lender,’’ he said.

Mr Cooper said brokers and banks were operating more at a partnership level these days because the branches and lenders realised that the brokers bring the majority of new and profitable   business in their doors.

“Now is the ideal time to talk to your broker because the banks are keen to write loans and are coming to us with some impressive offers,’’ he said.

For example a number of major banks are offering to pay up to $40,000 in transition costs for commercial clients to refinance their business lending with them, for a limited time.

“The banks are prepared to sit down and talk with good clients who are banking with other institutions, and put their hand in their pocket to obtain  their business,’’ he said.

It is becoming more and more obvious to Cooper Financial Connections that the banks are only interested in seeking new customers and not looking after their already exisitng client base.

Peter Cooper, director of Cooper Financial Connections says “There are many factors to take into consideration when shopping for a home loan or refinancing but these factors are being overshadowed by the perceived importance of interest rates in Australian media.”

Peter Cooper was recently interviewed by the Courier Mail for his take on the current mortgage market and how the public can become mortgage savvy and be aware of all the factors when considering your financial options.

To read the article – click here.

WHAT BROKERS DO

Brokers work with clients to determine their borrowing needs and ability, select a loan suited to their circumstances and manage the process through to settlement.

Some benefits of using a broker:

• They do all the legwork for you
• Access to a wider range of loans
• Experts in a wide range of loans
• More flexible
• Greater expertise as they focus on loans only

TYPES OF BROKING

Brokers can specialise in areas such as:

• Residential Loans/Mortgages
• Reverse Mortgages/Equity Release
• Equipment Leasing
• Chattel Finance
• Car and personal loans
• Business Loans
• Debtor Finance
• Commercial Property Finance

PANEL OF LENDERS

Brokers can only offer loans from the lenders they are accredited with. They call this their panel of lenders. Lenders will normally range from the large banks through to specialist non-bank lenders and mortgage managers. The size of a panel of lenders will vary from broker to broker. You can ask to view your broker’s panel.

HOW BROKERS ARE PAID

Residential brokers are remunerated by the lender and receive an upfront commission and a trailing commission on the loans they settle. It is not standard industry practice for a residential broker to charge a customer for their service due to this arrangement.

The normal practice for commercial, equipment and general finance brokers is that they enter into a mandate or agreement with the commercial or business borrower which provides for a fee to be paid by the borrower to the broker for sourcing their required finance.

WHY USE AN MFAA MEMBER

MFAA members must adhere to the industry Code of Practice which requires high professional standards, fair business practices, ethical behaviour and compliance with both the letter and the spirit of the relevant laws and regulations – all in the interest of you, the borrower.

MFAA sets the highest standards in the industry for its members:

• Industry experience
• Education standards
• Ongoing education to maintain accreditation
• Probity checks
• Professional indemnity insurance
• Membership of an external dispute resolution service

LEGAL REQUIREMENTS FOR BROKERS

New national regulation for the credit industry, including mortgage brokers commenced on 1 July 2010 and is known as the National Consumer Credit Protection Act (NCCP).  Changes include that credit for residential property, including residential investment property, is regulated nationally by the Australian Securities and Investments Commission (ASIC). Note that some state laws and regulations continue to exist, such as maximum interest rate caps in ACT, Qld, NSW and Victoria.

Finance broking contracts (FBCs), have been mandatory in NSW and Victoria until 31^st December 2010.  However, from 1 January 2011, a new phase of the NCCP is in effect that requires that Credit Guides and Credit Quotes be provided to potential borrowers.  These documents are designed to give borrowers pertinent information about their rights and obligations under the NCCP.

Another very important aspect of the NCCP is the concept of “responsible lending”, because it requires all persons involved in the provision of credit for ‘personal, domestic or household use or consumption’ to make sure that the borrower is able to make repayments on a loan (or lease) without substantial hardship.  In other words, loan products must be ‘not unsuitable’ based on the objectives and needs expressed by a borrower.

Source: http://www.mfaa.com.au/default.asp?menuid=171