

Brokers not to blame for errors
Borrowers who use brokers experience less problems with their loan accounts than those who use bank or non-bank lenders, according to the latest BankWest/MFAA Home Finance Index.
The survey revealed a decrease in problems with accounts reported by those using mortgage brokers, with just 16.7% experiencing problems, down from 21.4% in November 2008.
More than a third of respondents (38.2%) who used a non-bank experienced problems, up from 23.5% in April last year, while banks showed a slight increase in problems experienced with accounts, at 22.5%, up from 16.0% in November 2008.
The finding suggests that brokers are doing a better job than both banks and non-banks at managing customers and pours cold water on claims that the third party channel is to blame for high error rates.
Overall, the survey found that an increasing number of borrowers have observed problems with their loan accounts since November 07 with currently more than one in five (20.2%) experiencing problems, a slight increase from the last survey (17.6%).
Just over half (54.9%) of those who had problems with the source of their home loan stated the reason was related to administrative mistakes followed by communication issues (37.3%) and overall customer service (33.3%). While administrative mistakes remain the main problem area, customer service has decreased as an issue from past surveys.
There were 974 valid respondents to the survey, carried out by Brand management, with 611 of these having either an investment or residential property loan