Aggregators in Australia had been criticised for being too slow to update their lending panels to the dismay of brokers and clients.
A letter published by BrokerNews from a confidential sender, who was just described as a non-conforming lender, said that for most brokers, aggregators are simply a means of getting access to funders to avoid the hassle of individual accreditations and maintaining volume levels.
"In return, you would expect your aggregator to keep this list of accreditations as up-to-date as possible, giving you access to the best priced and optioned facilities in the market," the letter said.
However, the non-conforming lender representative argues the response from aggregators to often very competitive lenders is "a blunt and often rude 'We're not interested'."
"If this is the attitude they take to keeping their list of panel funders as up to date and cost conscious for your clients as possible, what are you paying them for? If a competing broker has access to these products you’re being priced out of the market and you are losing business," the letter indicated.
The letter further said that this response extends to originators, sub-aggregators and those offering franchise opportunities.
"What’s worse, it’s normally the small-to-medium sized groups that you would think should be working harder to compete with the big boys."
The letter claimed that most lists of accredited lenders on aggregator panels are out-dated.
"In fact, many still have funders listed on their web pages and advertising material – despite the fact they no longer exist or lend."
The letter further argued that brokers who don't have access to a range of funders they may be putting clients into inferior and higher priced facilities, which would come back to bite them if the client finds a cheaper alternative.
"Aggregation groups need to take the time to see what’s out there on offer from all current funders, as they may be doing their brokers a massive disservice compared with the broker next door," it said.