Origination contracts renewed with ‘big four’
THE PA GROUP has renewed its bond origination contracts with all four major South African banks and it is now business as usual for its origination businesses, Betterbond and Mortgage Alliance, says chief executive Rudi Botha.
“The fact that Standard Bank also re-signed our bond origination contract should enhance our volumes by at least 30%,” says Botha.
The announcement follows widespread media reports that banks are renegotiating home loan submission contracts and commission structures with the various mortgage originators.
Botha says sourcing bonds is a challenging task in a credit-crippled South Africa, seeing that mortgage originators are responsible for securing their clients the most suitable home loan solution.
“This is done at no cost to the client whatsoever, as bond originators take commission from the bank the client chooses to sign up with. Bond originating services know of all the products available at each bank and can therefore secure financially feasible deals by saving consumers lots of paperwork, money and time,” says Botha.