Specialist lender Bluestone plans to return to mortgage lending

Group CEO, Peter McGuinness, revealed Bluestone would consider at some stage offering a web-based product, though he said it would be a far more basic product than the company has offered in the past.

Bluestone quit mortgage origination in September last year, but has reinvented itself as a third party loan servicer and boutique asset manager.

The company has also maintained strong connections with the broker market.

With a sizeable mortgage book, Bluestone continues to make substantial trail commission to brokers.

"And I am pleased to say we have had no defaults," McGuinness told Australian Broker.

"We communicate once a quarter to brokers to let them know what is going on," he said.

Bluestone also maintains a "substantial" customer service offering for brokers to help them with queries about refinancing, settlements and discharging of mortgages.

"We are very much focused on client retention," McGuinness said.


http://www.brokernews.com.au/news/breaking-news/34277/details.aspx

Predictions that broker numbers will significantly reduce as a result of the challenging market conditions and an over-saturated market appear to be either unfounded or premature.

Expectations of anywhere from a 15% to a 50% reduction in the number of brokers have been touted regularly at conferences and in the media in the last 12 month, but neither the MFAA nor the FBAA reported any major changes to their membership numbers.

Peter White, national president of the FBAA, said member numbers had not reduced, but had instead "plateaued for the moment".

"If that's all they are doing, then I think we are OK," he told Australian Broker.

"Our inflow of members is matching our outflow."

MFAA CEO Phil Naylor said there had been a slight fall in membership (about 1%) over the last six months.

"In July 2008 we had 13,689 members of which 12,646 were accredited loan writers. At the end of January 2009 we had 13,311 members of which 12,368 were accredited loan writers," he told AB.

White said the FBAA was still getting a lot of new members as a result of bank redundancies, but not many from outside the mortgage industry.

"The flow of new members coming from outside the industry has slowed a little. It is still a component...but it's historically lower," he said.

By Larry Schlesinger