Neil Brett This is Me

 Web References

1. 1. www.mortgagemagazine.com.au

   www.mortgagemagazine.com.au/de - [Cached]

   Published on: 11/1/2006   Last Visited: 5/23/2007

   Neil Brett, general manager at CSC Home Loans, points to basic commercial transactions as one area that brokers should not shy away from. "I don't really know the difference between doing a loan for someone's residential property, or for someone who wants to invest into an office," he says. "It's still bricks and mortar security.
   ...
   Brett says the decision to diversify is often based on the broker's workload. If he or she is processing around 20 loans per month, Brett says it is unlikely they will have the time to properly handle new products. "You can't be a master of everything," he says. On the other hand, if you are only doing three or four loans a month, then, why not take on a few new products, he asks.
   ...
   Brett believes brokers need to have some basic traits if they are to succeed in diversification.

2. 2. AusBroker

   www.ausbroker.com/detail_artic - [Cached]

   Published on: 1/1/2005   Last Visited: 3/2/2005

   CSC Home Loans managing director, Neil Brett, recently e-mailed his network of 138 mortgage introducers to advise them that his company would no longer pay up-front commissions on all Interstar loans sold through the company from 13 December 2004.
   
   Brett said the changes would mean that his business would effectively be subsidising Interstar when a loan runs for longer than five years.
   ...
   However, Brett said Interstars move to reclaim much more than the actual cost of the initial up-front commission would eventually cost his company an estimated $675,000 a year in reduced commissions, based on an average of 300 loans settled a year.
   
   "Our introducers can still send loans to Interstar but we will only pay them a 0.45% trail because were not prepared to subsidise Interstars business over the longer term," Brett said.
   
   He said the problem occurred after Interstar recently changed the way it reclaims the cost of up-front commissions from the 1% margin that most mortgage managers make on a loan.
   
   Brett said, in some cases, mortgage managers fund the cost of up-fronts they pay to brokers under an arrangement where the wholesaler retains about 0.24% out of the mortgage managers 0.50% trail commission over the first five years of a loan.
   
   In most cases the full 0.50% trail would flow to the mortgage manager after five years if the loan was still active and the cost of the upfront had been reimbursed to the wholesaler.
   
   "This arrangement was generally seen as fair - the broker gets a 0.80% up-front commission which is funded by payments totalling about 0.96% of the loan amount over five years," Brett said.
   ...
   Brett estimated that the Interstar changes would cost his company up to $675,000 a year in lost commissions.
   
   He said the decision to no longer pay up-front commissions on Interstar loans could lose him business, as brokers would be tempted to go to other mortgage managers who are prepared to continue paying the upfronts. In many cases, he said, these mortgage managers would end up subsidising the cost of those up-fronts for the life of the loan. In short, the wholesaler would reap substantial long-term commission rewards for funding that up-front.
   
   "Instead of paying 0.96% for the cost of the up-front, we would now lose 2.4% over 10 years to fund that initial upfront and much more if the loan runs for longer."
   
   "Its nothing short of a grab for money - many market players may not have spotted it until it was too late," Brett said.
   ...
   Brett said he believed that few other market players had noticed this key change in commission payment structures that would impact on their business over the longer term.
   
   He said he had discussed the changes with senior management at Interstar in recent weeks but was not able to change their minds.

3. 3. www.mortgagemagazine.com.au

   www.mortgagemagazine.com.au/de - [Cached]

   Published on: 12/1/2006   Last Visited: 5/23/2007

   Neil Brett of CSC Home Loans says customers now expect brokers to have some affiliation with a planner. "Just like an accountancy, an accountant's customer would expect them to have a financial planner in the office these days, and they would probably expect them to have a mortgage consultant," he says. "I see no reason why mortgage brokers shouldn't, if it's a small practice, team up with a financial planner who sits in your office ... it's all finance."
   
   Brett can see the day when the two professions end up merging, particularly if mortgages are eventually moved under the financial services reform act. "I think that's when we're going to see a real merging," he says. "Probably not until then."