Case Study of Monash Retail Commercial Bank--多伦多大学Report代写范文
2016-10-17 来源: 51Due教员组 类别: Report范文
多伦多大学代写Report范文:“Case Study of Monash Retail Commercial Bank”，这篇论文主要描述的是对银行而言抵押贷款经纪人两者之间存在着一定的竞争，银行应为监管和程序的问题，往往办理抵押贷款的时长要高于规模小程序少的抵押贷款经纪人，银行运营规模大也导致了抵押贷款的成本较高，而抵押贷款经纪人能够有较大的自主权，能够自主的降低利率来作为市场竞争的手段。
The mortgage brokers will focus on regulatory change due to several reasons. For one thing, mortgage broker has many potential itself. In this essay, it will contain three parts. At first, it will discuss the potential for regulatory change. Second, it will explore the future of this industry. Finally, it will provide some recommendations.
Potential for regulatory change
According to the marketing manager’s report which he presented to the board of directors of the Monash Retail Commercial Bank (MRCB), new lending had increased but slower than its competitors. This is because the back of mortgage brokers.
As an intermediary, the mortgage broker operates business on behalf of individuals or businesses, or you can regard it as a connection between borrowers and lenders who can provide loans. In the past, lending institutions sold their own product. But with the development of competitive market nowadays, the mortgage broker becomes more and more popular.
The mortgage brokers will focus on regulatory change due to several reasons. For one thing, mortgage broker has many potential itself (Campbell, Mullainathan & Econometrics, 2010). In the 1970s, mortgage brokers couldn’t reach wholesale markets in their ways, which was different from traditional bankers. However, mortgage brokers got their positions in this market. Compared with large and expensive banking operations, a mortgage broker has lower ceiling costs. This is because mortgage broker has small and low-cost structure. They can lower their rates instantly to compete for clients, when larger companies insist their fixed rate sheets for their sales representatives (Bright Financial 2014), the mortgage brokers can make benefits for their customers by lowering their rates. Loan officers usually disagree to cut down the profit margin of their companies and the profit margin may be different from that of the marketplace which is depended on the managers. And now, the profit the mortgage brokers can make is 60% more than that of the market.
In the big nation environment, mortgage brokers develop rapidly. Mortgage brokers have been active since the early 1980s. In the late 1990s on the back of aggressive marketing by Aussie Home Loans and Wizard Home Loans, they became a dominant force. In 2008, about 35% of all loans secured by mortgages were introduced by mortgage brokers. In March 2012, the share of loans introduced by Mortgage Brokers had risen to 43%. The evidence suggests that mortgage settlements almost doubled in value from 86 dollars.
For another, Mortgage brokers have many advantages. As mortgage brokers can offer competitive rates, so they should be considered alongside banks when searching for financing. They have the ability to shop numerous lenders at once so they can find the best pricing based on your needs. In search for a mortgage, a person faces trade-off and needs to make a decision between a bank and a mortgage broker. Both have merits and demerits. There are also many available choices of lenders and mortgage options. It might just be only once or twice to gain a mortgage in one’s life (Immergluck, 2011). Everyone can show their experience, situations, learning and financial desires. The most significant advantage of mortgage brokers is their full knowledge of the business. They have the nose for trends and the latest available mortgage products. They are clear about the proper institutions which are propably to provide special discounts. They may even have the information of the deals that are operated under the table. They can find the most appropriate lender for the borrower in the particular condition. Brokers can save time and effort for a mortgage seeker in terms of applying at a bank which would not give you exclusive services.….…….
The industry’s likely future
During the 1980s, the Australian financial market wasn’t regulated. As more and more new players entered the markets, the merger occurred and competition became intense, particularly for credit products. As a result, the lending market had a fierce competition for market share, which led to the growth of distribution networks. In the last decade, the Australian mortgage broker industry has risen. They represented a cheaper method for lenders to reach their target markets.
As it is shown in report, the housing price continues to go up. According to the report, the foreigners in Australia are active in buying houses, occupying 1/7 of the new house buyers, making the housing price increasing (Mortgage gallery 2014). This shows that the industry’s likely future is bright
Several options are advanced by the Department. Vynerin (2014) suggested that in the future, as we can see, well moving forward with the private lenders, the credit market and the money markets has been tightened. Obviously there has been a change to the institutional lending, where they have tightened up and employed stated income features. It shows that it’s looking to get a little tighter CMHC starting to look at what the institutions will do.
The banks, the institutions may have to re-underwrite that mortgage loan. The mortgage loan is coming up for maturity, for renewal and within the scope of the borrowers, changing history, changing credit and job status. This could result in a win-win or lose-lose situation (Bright Financial, 2014). It may have a whole mortgages that are not being renewed, coming into the market that may not be able to be renewed. A lot of housing stock comes out. This phenomenon may always shrink prices or maybe reduce the value, if not slightly may plunged and oversupply in the marketplace.
There is a brighter future for mortgages, but it is not something many people expect to hear after the deep recession which they have been through in recent years, so many people around the world haven’t been capable to keep up with the high interest rates of the monthly repayments on their debts.
Recently the Reserve Bank of Australia reduced the cash rate, now mortgage broker can provide people with a far-ranging of home loan deals, which includes discounts from fixed rate deals and the standard variable rate. These two rates have been the lowest for many years. Banks and other lenders have slightly eased their criteria to make it easier for people to obtain a mortgage.
All of these for MRCB would be a useful starting point
The Monash Retail Commercial Bank faced several changes throughout its history. The Monash Retail Commercial Bank was first created to meet the financial needs of the returned soldiers in World War I. Then with its development into a strong, ASX listed, retail bank. It began to serve the needs of people and businesses. Shortly after, Monash Retail Commercial Bank developed into a life insurance company as subsidiaries.
Using the mortgage broker will be a new start point for The Monash Retail Commercial Bank. As mortgage broker helps the bank to handle the business as well as home loans. Sweeney (2014) suggested that the biggest advantage of a broker compared with a bank is choice, in many cases the broker can make up for the loopholes which banks have. Brokers make commitment with their clients in the long term, as they have many years of industry experience. On the other side, banks are big companies, so they move their staff around and reward who has good performance with promotions away from their customers. Besides, broker is specialized, however, bank staffs often don’t have the training or experience, for their job related to more than one area, but they offer service to whoever walks in to the branch by coincidence. So concluding the mortgage broker can cover the shortage bank has and would be a useful starting point
Though banks and mortgage brokers are different department at first, with the social development, the difference has become smaller and smaller. Mortgage broker has many advantages over the bank. People always face the trade-off between the mortgage broker and bank. Many of the lenders in banks are offering their best deals to customers who go direct to them. However, be careful as they will only be able to offer you products which come from their own range which is very limited, while brokers ensure you use a “whole-of-market” mortgage advisor, because they have access to the majority of products and lenders of the market and the best brokers will have the access that you won’t find in other places. Branch advisors are only able to offer you products from their own companies. Therefore, they have very little understanding of the market. This is especially so when it comes to guarding your mortgage. It is the broker’s duty to be an expert in their field. They will be able to give advices and make recommendations after assessing your own unique needs. On the other hand, going to the bank can sometimes be a painful experience. You maybe need to wait more than 3 weeks just for the initial appointment and often find yourself getting crazy in an effort to get your mortgage approved. While a good broker takes control of your application, knows what the lender is going to require before they ask for it, accomplishes your mortgage quickly and keeps you in the loop through the whole process. If you stumble upon one of the attractive direct only deals at the right time by chance, then you may be capable to benefit from lower repayments which paid per month and fees fewer than before. By sourcing the whole of the market, a broker will have the chance to look at all products and carry out a full cost comparison, which mortgage is going to cost you the least compared with banks or others.
Salmon (2012) suggested that mortgage brokers give you more research information. They see you as a house buyer and think over of your credit and reputation. They will make the best matching between you and the lender too. A mortgage broker apply loans on behalf of you and won’t stop working until you are satisfied. Of course, you can do this research on your own if you are not occupied, while the mortgage broker can do it better since they have cooperation with the lending companies already. Mortgage brokers obtain loans by a plenty of investors, investment banks, even including private sources and savings and loans. Mortgage brokers have put up many mortgages on the internet that you can see online.
Lots of mortgage brokers have cooperation relationships with lenders all around the country, which has its own pros and cons. you may not get a better rate anymore and you may not enjoy a professional company providing you knowledge of property in your area. In the long run, it may become a problem. There might be a slight delay in application procedure only when all terms and questions about the property are to be tackled. Therefore, the Monash Retail Commercial Bank should use mortgage broker as it has an edge in some cases, the use of it can help the bank to widen its service and have a useful starting.