Two senior managers at non-bank lender Southern Cross Partners have left to start their own adviser support business, which will help advisers access non-bank lenders and deal with time constraints.
Ross Brogden was a credit manager at Southern Cross Partners for over ten years, and says he has worked with many advisers who have struggled with the logistics of putting a non-bank loan application together and getting the deal through.
Co-founder Jen Latham was BDM at Southern Cross Partners for over five years, and along with Brogden, has launched Solutions Out Sourced – a non-bank support service that helps mortgage advisers navigate the process of obtaining a non-bank loan for customers.
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Latham says lenders will also benefit from the service, as it will halve the time it takes to review applications as all information is already provided and verified – a “win-win” for everyone.
Brogden says the main objective will be to encourage advisers to enter more specialised markets, especially as supply constraints continue to be an issue.
“Prior to COVID-19, there were concerns around the New Zealand housing shortage – in particular, Auckland’s low supply,” Brogden said.
“This is now exaggerated with some banks not honouring previous approvals and leaving borrowers and developments at risk.
“SOS’s main objective is to grow the advisers reach-in to specialised markets by being a conduit to the non-bank lenders they have available to them, thus increasing the opportunity for the adviser to grow their business and find lending that is fit for purpose for the borrower.”
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Brogden says that despite the drop in property values, development activity is still on the horizon. The new business aims to ensure that advisers have good access to non-bank lenders, which may be the “catalyst” to help get the market moving again.
“The gap in the market for an independent support service for advisers who specialise in this market was the impetus for us to step out into our own start up,” he said.
“With Jen’s history as a BDM in this space and the trust and integrity that has been built over the years, we are hoping this will stand us in good stead going forward in this uncertain time, offering a transparent efficient support crew to all advisers.”