The NZMBA has complained to The Herald. Apparently The Herald gave the impression it had spoken with Brian Berry, and it had not. Megan Salt wrote:
I am dismayed at the
article in The Business of Monday 25th September, written by
Christine Nikiel showing a photo of Brian Berry with the caption
– Mortgage brokers,
such as Mortgage Works Brian Berry, are finding banks prefer to deal direct with
Brian Berry was not
interviewed for this article, the photo is not recent and in addition Brian did
not make the quote attributed to him in the context of this
We consider this to be
irresponsible and lazy journalism and we ask that you make it clear that Brian
Berry was not interviewed for the article by
I have looked on the Herald site and cannot find the original article - if anyone can find it I would appreciate the link. We may not yet be at the level of the Tawera Nikau story, yet, but its definitely worth tracking.
While the NZMBA may smart a little at the public withdrawal from the broker market by a couple of funders recently they are quite right not to worry about that, and not to respond to it either.
In another recent article it would have been more informative to get a better discussion of why brokers are useful to banks and clients alike and how they provide an important economic function. Dr. Tripe quoted in this article gets a measly one paragraph, and I bet he has more to say on the subject.
Brokers of all sorts perform useful functions including: packaging, comparing, finding, negotiating, for buyers. Their role for sellers is less often discussed, debate in these articles focused on cost - yet if you are a new lender seeking to operate in New Zealand - well you can quickly plug into the broker market with a commission schedule and a roadshow. It is somewhat harder to build a retail brand or a branch network. Even an established business may benefit from brokers - short on your sales target? You can run a big consumer ad campaign. But it has a longer lead time and higher cost than dropping an email out to 800 mortgage advisers with a special incentive added on.