Mortgage brokers will be forced to write a minimum number of loans or face re-accreditation classes costing up to $500.
Commonwealth Bank has written to 8000 brokers informing that they must submit a minimum of four home loan applications and settle a minimum of three loans over a six month period to remain accredited from July 1.
Westpac on the other hand are rolling out a scheme that specifies a target of one loan every six months.
Wayne Ormond executive chairman of Refund Home Loans has stated that these conditions will reduce mortgage options for customers. It would be a good idea for consumers to ask their mortgage brokers whether they have recommended a CBA home loan, because it is the best loan or whether it is being recommended so that the broker doesn't lose their accreditation.
Mortgage brokers will face being re-educated if they don't meet their targets. Westpac will charge brokers $150 to attend a re-accreditation workshop, compared with a $500 fee being charged by Commonwealth Bank.
Mortgage brokers account for 35 per cent of home loans in Australia.
National Australia Bank has a star system that rates mortgage brokers according to a number of factors including the quality of loans submitted. ANZ on the other hand have no minimum performance criteria.
These new tighter broker accreditations are to ensure customers are serviced by mortgage brokers who understand the bank's loans. Not all mortgage brokers oppose the changes in principle.