NAB axes controversial home loan referral program

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Real estate agents, lawyers and sports clubs will no longer be able to receive payments from National Australia Bank for helping sell home loans | clancyyeates

Following the explosive evidence to the commission, NAB last year said it had tightened the program significantly, restricting who it was open to and slashing its introducers by 6500. The remaining 1200 introducers included people in professions linked to house buying such as lawyers and real estate agents, and weeded out members of the general public, with the exception of some community groups like sports clubs.

“Through the royal commission, we heard clearly that our actions need to meet the expectations of our customers and the community. We need to be simpler and more transparent to earn trust. We have to put customers first, to be a better bank,” Mr Chronican said.“We want customers to have the confidence to come to NAB because of the products and services we provide – not because a third party received a payment to recommend us.

NAB's key rivals continue to make introducer payments. The lenders defend the programs on the basis they are limited to certain groups, the payment is disclosed to customers, and referrers have no involvement in the actual lending decision. Westpac said its program was managed under a "tight framework" that required referrers to come from specific professions and to be accredited by the bank.

 

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