All 100% INTEREST ONLY 30 year Mortgage Loans  are TOXIC and all such loans implode within 5 years.

Brokers sell 45% of all mortgages.  55% of sales are written up by bank staff and Managers.  

HSBC goes back to the future with brokers

Australian Financial Review Nov 30 2016 12:04 AM

Sarah Thompson, Anthony Macdonald, Joyce Moullakis

A decade after it turned off the sale of home loans through mortgage brokers, HSBC is preparing to switch the broker channel back on. 

Street Talk understands that from next April, mortgage brokers – who sell more than half of all mortgages in Australia - will be able to access HSBC's home loan products, reflecting the bank's desire to grow its housing book. 

The push back into third-party distribution is being led by Alice Del Vecchio, who has been running mortgages at HSBC Australia since July 2010. She knows the broking business well; before joining HSBC, she was the national head of mortgages and operations at Aussie. HSBC has already deployed existing staff to the division and is also hiring business development managers ahead of the April launch date. 

HSBC's return to brokers comes more than a year after it took steps to slow its lending to property investors, following the prudential regulator's decision to apply growth caps on investor lending at the end of 2014. HSBC subsequently decided to stop lending to new-to-bank property investors. But with the investor lending book contracting by $470 million over the last 12 months HSBC now appears comfortable scaling up the book again. 

According to the latest data published by the Australian Prudential Regulation Authority, HSBC Bank Australia has $5.5 billion of loans to owner occupiers and $4.7 billion to housing investors. Its total housing book of $10.2 billion is bigger than foreign bank rival Citigroup, which has housing loans of $7.1 billion, but is less than ING Direct's $39.4 billion book. 

HSBC is unusual for not having offered mortgages to brokers since the sale of its broker-originated loan book to Resimac back in 2006. 

Its move back to the market comes after it announced the opening of a private bank in Australia to target wealthy customers whose companies already use the corporate or retail bank - which HSBC's local boss Tony Cripps said illustrated the bank's focus on Australia as a "priority growth market".