Is the Era of Solo Brokers Coming to an End? Find Out Why Running a Mortgage Broking Business Alone May No Longer Be Viable!

June 29, 2023

Home Loan Mortgage Broker Mortgage Broking

Running a mortgage broking business independently poses unique challenges in today’s dynamic industry. As brokers face increasing client demands, compliance responsibilities, and the need to grow their businesses, it becomes crucial to evaluate the feasibility of managing it all alone. Industry data from the Mortgage & Finance Association of Australia (MFAA) reveals that nearly half of broker businesses consist of a single loan writer, while an emerging trend shows a rising number of brokers opting to hire administrative support to navigate the mounting administrative tasks and compliance requirements.

The evolving landscape suggests that operating a successful brokerage as a solo practitioner is becoming increasingly arduous. The industry experts recognize the shifting dynamics and share valuable insights. For instance, independent brokers highlight the inherent challenges they face in terms of compliance, record keeping, and client servicing. They emphasize the growing importance of brokers in assisting borrowers to navigate the ever-changing lending environment. However, they also acknowledge the struggle that many brokers face in balancing client retention, meeting compliance obligations, and managing their existing workload.

Help is on the way…

To address these challenges, it is essential to assess the practicality of running a brokerage independently as the business expands. Mortgage brokers point out that as the loan volume exceeds a certain threshold, usually more than three loans per week, a capacity limit is reached. To ensure sustainable growth and maintain high-quality service, brokers must consider the introduction of administrative support to free up time and alleviate the burden of multiple responsibilities. This includes building a robust business structure that can handle the demands of loan processing, client interactions, credit analysis, and compliance management.

In line with these observations, brokers share their experiences of transitioning brokerage firms from a single-practitioner model to one that replicates critical business processes. By strategically recruiting an administrative assistant, a post-settlement care specialist, and a credit analyst, brokers can successfully build a capable, well-oiled team. This approach allows brokers to focus on core activities, such as business development and client relationships, while ensuring that administrative and compliance tasks are handled efficiently.

Industry-Wide Shift Happening

The experiences of brokers in Sydney are indicative of an industry-wide shift toward team-based approaches. Brokers have recognized the limitations of working in isolation and have successfully implemented team structures within their businesses. Most emphasize the importance of delegating tasks and building a team of professionals who contribute to the client journey and share the workload effectively.

In building a brokerage, it is crucial to exercise patience and make informed decisions throughout the growth phases. Establishing robust management systems and seeking external support can provide valuable guidance and ensure the business stays on track. Additionally, investing in qualified personnel who can assist with various functions of the brokerage helps alleviate pressure and allows for a smoother client experience.

As the broking landscape continues to evolve, brokers must carefully consider the pros and cons of running a business independently. The emphasis is on finding the right balance between meeting client demands, staying compliant, and achieving sustainable growth. Expanding teams or exploring collaboration opportunities with established businesses can provide the necessary support and resources to deliver exceptional outcomes for clients while allowing brokers to reclaim personal time and energy. At Successful Ways, we build partnerships with mortgage brokers all around Sydney and Brisbane areas. You’ll still have primary control of your business and your clients, while having the support of an entire team of experts behind you, making the entire process smooth and seamless.

What support do I get?

• Access to industry leading CRM
• Application follow ups
• Advising clients on fixed rate loan or interest-only loan expiry
• Completing anniversary repricing
• Continuous knowledge base update
• Follow up on approvals, documents and certifications
• Post settlement work which helps receive income producing opportunities

20-40% increase in revenue sales the Successful Way

Our business encompasses real estate, legal and financial services all under one roof. With our referral system, you get a percentage of commission anytime your client uses one of our other services such as buyer’s agent services, real estate sales, financial planning and legal services. It’s an easy way to keep earning after having successfully serviced the client for the first time without lifting a finger!

You will also get the support of a team behind you which will allow you to focus on “your Business”.

Disclaimer

The article provided here is a reworded version based on the original article written by Annie Kane for The Adviser, published on June 22, 2023. The purpose of this reworded version is to cater to our audience while maintaining the core ideas and concepts of the original article.

We acknowledge and respect the copyright of the original author and publication. The original article can be found at the following link: [https://www.theadviser.com.au/growth/44486-are-the-days-of-the-single-operator-broker-numbered].

Please note that while we have taken efforts to rephrase the content, the information and opinions presented in this article remain the intellectual property of the original author and publication. We encourage readers to refer to the original article for a comprehensive understanding of the topic and to comply with Australian laws regarding copyright.

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