Tuesday, 2 November 2010
ABSA - wherefore art thou goest!!!!
That equates to about 2 clients out of 200,000.
we all know that most new home loans businesshas a loan to value amount (LTV) of between 75% and 100%, this announcement will have a huge impact on the options available to the homebuyers for the future and of course it will effect the originators and the estate agencies that they originate for.
I am sure that Standard Bank, Nedbank and FNB cannot wait as now they will certainly get the cream of the crop clients from now onwards.
So who dies in the melee, you would ask. Well for one, we heard clearly that Bond Choice will cease to operate as an independent originator and its processing and servicing capacity (rebranded as “Findex”) will be used as part of an Absa “direct to real estate” strategy, in conjunction with Absa’s internal sales force.
So the news vine says that Absa will not accept any home loan business post 1 December 2010, for LTV’s in excess of 40%, from any originators or aggregators other than from estate agencies that sign a direct contract with Absa and that are willing to have the homebuyer’s application processed by “Findex”.
Once again, we see the true colours of a very powerful bank as they step forward to control the market. I wonder how much they paid Nedbank for their share of Bondchoice ooops Findex!!
Watch the switching of homeloans go bezerk as people freak out about the control that ABSA puts on them.
So because they are not making the profits they should, defaults are at a high, PIP's are just too much, well why not get rid of the force that does all your screening, work and provides you with the best cleint base - hell lets get rid of them and own the balance.
The freedom of choice by using your financial consultant is being whipped away and now you have no choice but to use a prescribed force...I think someone has made a big mistake here!