ME joins Mortgage Choice panel
ME Bank is continuing to deepen its exposure to the home loan broker market after securing a listing on Mortgage Choice's national lending panel.The deal, which takes effect this morning, means that ME home loans are now being marketed through more than 12,500 brokers across the country.Since he took the reins of ME almost a decade ago, chief executive Jamie McPhee has increasingly relied on the broker channel to drive most of the bank's loan growth."Six out of ten borrowers choose to engage a broker rather than a bank for their home loan needs," he said."Mortgage brokers have allowed ME to compete with larger banks and more importantly, have provided the ability for ME to connect with those borrowers."McPhee said that brokers currently originated around 70 per cent of all new home loans sold by ME.The widening of ME's participation in the broking sector comes as mortgage brokers still face uncertainty around how they will be paid in the future.While the Labor Opposition appears committed to abolishing trail commissions if it forms government, shadow Treasurer Chris Bowen indicated last month that he supported the retention of upfront payments from lenders to brokers.However, the Labor Party has not yet clarified whether it would allow lenders to increase the size of upfront commissions to reflect the discontinuation of trail payments.The Morrison Government said in March that it would retain trail commissions for the next three years and then institute a review of broker pay.