Oliver had been working through Mortgage Works before he joined Plan.
Oliver says he made the decision after many months of looking at his options but that ultimately rejoining Mortgage Works provided him with significant cost savings.
Berry’s group provides an aggregation service to 20 mortgage brokers, most of whom continue to operate under their own brand names.
Berry says his group isn’t actively recruiting members and is made up of very experienced brokers who he has known for many years and who share high ethical and quality standards. It isn’t open to new entrants to the industry.
"The market’s moving more and more this way. The lenders are looking at providing returns based partially on the quality of submissions and quality of relationship," he says.
Rather than charging a percentage of commissions, Mortgage Works charges a flat monthly fee for its aggregation services. "It’s not a money-making model of aggregation, it’s a cost recovery model," Berry says.
Plan NZ charges its members 10% of the commissions they earn.
Julie Stevens at Plan NZ says that while her company offers brokers a wide range of services including aggregation, some brokers opt not to use all its services. Oliver, for example, wasn’t using Plan’s software.
As well, the decision by the major banks to cease paying trail commissions has led some brokers to focus more on their expenses.
"I still have a great deal of time and respect for him (Oliver) and wish him well in his future endeavours," Stevens says.
