I’ve been talking with a friend of mine, who is a lawyer BUT not specialised in wraps or property law, and she seems to think that having a mortgage broker pass on the details of people who can’t get traditional finance (for the purpose of offering them vendor financing) in exchange for a fee is illegal?!
What is the legal situation if the broker you approach works for a large company BUT you approach him without informing the company itself?
Of course it is illegal. It is a clear breach of the Privacy Act. Unless authorised, the broker can not give you anyone’s personal details and even if they were allowed to give you the details, you are not allowed to cold call them if you work under the UCCC rules and regulations.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHow is this type of networking done legally then? How do you get the necessary authorisation?
I would only work with a wrapper who works under the UCCC and it can’t be done via referral.
The only way I am aware that you can do it legally is for the broker to ask the client and either give them your number to call (which they will probably never do) or arrange a meeting at which you will attend.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdIts not illegal if the broker asks the client and gets the client to ring the wrapper.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I’ve had a couple of referrals like this. Also some from Real Estate agents who have had deals fall over because of finance problems.
The broker likes it as he gets another loan and the agent likes it as they get another house sold.
Thanks for that.
Oldtimer – how do brokers typically get paid in this situation? A flat fee?
Monohan,
<Edited – misinterpretation>
To try and end the confusion (and doubt), go to the following link and the bottom of page 23 and read about cold calling:
<Link Removed>
This link will only be active for a few days and then I am removing the file as it is quite large (104 Pages).
The industry is currently discussing this paper and making submissions regarding it (myself included). It outlines many of the problems faced by the finance industry regarding brokers and it discusses the benefits of a single national set of regulations applicable to all brokers.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdMortgage Adviser there is no breach at all as I NEVER called. They called ME. The clients that is.
It goes like this. Broker gets approached by client. Client applies for finance on a house they are keen on. Broker can’t get them finance. Broker suggests they call me. They call. I buy house with loan from broker. I wrap house to client. Everybody happy.
MA I have formed the opinion after seeing a lot of your posts that you may be a few neurons short in the bowling ball department.
You dont seem to pick up on a lot of stuff that is blatently obvious. I’m not 100% sure yet but if you continue to make assumptions without getting the facts then I am sure the indictment will soon be made. Maybe an ignore button would be a useful addition to this site?
Monahan, the brokers get paid exactly the same as if they had organised a normal loan, as in fact, that is what they are doing.
We take wrap business from around 5 introducers in the State all of whom use our application forms and get the client to complete and sign the application on the basis that they are lodging an wrap application.
We would never deal with any referer who merely gave out a telephone number and asked us to contact the client becasue as Robert points out it is a breach of the Privacy Act.
Any wrapper who operates this way should be driven out of the industry as quickly as possible.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Originally posted by Oldtimer:Mortgage Adviser there is no breach at all as I NEVER called. They called ME. The clients that is.
It goes like this. Broker gets approached by client. Client applies for finance on a house they are keen on. Broker can’t get them finance. Broker suggests they call me. They call. I buy house with loan from broker. I wrap house to client. Everybody happy.
MA I have formed the opinion after seeing a lot of your posts that you may be a few neurons short in the bowling ball department.
You dont seem to pick up on a lot of stuff that is blatently obvious. I’m not 100% sure yet but if you continue to make assumptions without getting the facts then I am sure the indictment will soon be made. Maybe an ignore button would be a useful addition to this site?
Monahan, the brokers get paid exactly the same as if they had organised a normal loan, as in fact, that is what they are doing.
Oldtimer,
Thanks for your comments.
I will give your comments the treatment they deserve.
By the way, I think you have also misinterpreted a whole chunk of this thread mate.
Have a HAPPY LIFE!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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