Though they may not realize it yet, the mortgage sector market share of ANZ, CBA, NAB and Westpac (at over 82%) is starting to cause them problems.
All four banks have been reported as taking up to a month to process mortgage applications. So far it hasn't mattered, as borrowers haven't had any viable alternative funding options.
But it looks like that's changing. Mortgage Choice for one is encouraging its brokers to steer clear of the major banks. CEO Michael Russell has said that they are going to be running workshops focussed on lenders with "clean pipes who are best equipped to handle an increase in volumes."
Broker sour grapes because of lower commissions? Maybe. But all bankers would agree that application turnaround times are of key importance to borrowers and brokers, and hence to a bank's ability to take customers out of the market.
So what should the major banks do? (Find out in an upcoming post.)