‘Without an aggregator, we’re pretty much unemployed’
Brokers operating under the collapsed sub aggregator Hai Money remain in limbo after Finsure – the aggregator under which Hai Money operated – terminated its agreement with Hai Money last week.
Finsure’s split with the sub aggregator amid allegations of fraud being perpetrated by some Hai Money brokers caused it to collapse in stunning fashion last Thursday, leaving question marks over the future of Hai Money’s 211 brokers.
Following the termination, Hai Money brokers lost access to their Australian Credit Licence (ACL), which is required for writing new loans.
Hai Money brokers are now scrambling to join another aggregator, but it is expected to be an uphill struggle given their association with the tarnished Hai Money name. While certain former Hai Money brokers have been implicated in home loan fraud – most notably alleged crime syndicate ringleader Andrew W. Hu – the majority are not suspected of any wrongdoing.
One Hai Money broker, who asked not to be named, told MPA that he is unable to coordinate existing business that’s waiting to be settled. Following Hai Money’s collapse, he has been locked out of all major lenders’ broker portals.
The broker stressed that he does not attribute blame to either Hai Money or Finsure, but to the small pool of bad actors that set the wheels in motion for Hai Money’s collapse. “The only thing to do is to just figure out a way to move forward, which is exactly what I'm doing,” he said.
The broker suggested Finsure was right to part ways with Hai Money to preserve its reputation.
Hai Money, however, called Finsure’s decision to terminate its agreement “hasty, disproportionate and grossly unfair”, and has urged Finsure to take on former Hai Money brokers “who have been cut adrift following the termination, and are now unable to find alternative arrangements”.
The group said: “I believe our brokers are collateral damage caused by systemic industry issues. These are hardworking, honest brokers who have done nothing wrong. They have families to support but now find themselves in limbo, with their main source of income cut off.”
Broker associations weigh in
Now, Peter White (pictured), the outgoing chief executive of the Finance Brokers Association of Australia (FBAA), has weighed in on the debacle.
“The industry has to go hard on those who are tarnishing our reputation, and there can be no compromise,” said White. However, he also said there were Hai Money brokers who have done nothing wrong and should be treated as innocent until proven guilty.
“The FBAA has received calls from brokers who haven’t even written their first loan, and have lost their accreditation, and others who are distressed that there has been a blanket decision against all Hai Money brokers,” White continued.
Indeed, another Hai Money broker told MPA that they have been declined by all major aggregators as fraud investigations continue.
“I really don't care if I get my commissions or not,” the broker said. “What I do care about is continuing in this industry… every single aggregator I've gone to, including my colleagues, people within the Hai Money Group, everyone has been given a ‘no, you can't join us’. So without an aggregator, we're pretty much unemployed."
White said the FBAA has an obligation to stand up for members who deserve natural justice.
“Overall, this is not about brokers from any one company or demographic, but about those, wherever they are and whoever they work with, engaged in sophisticated criminal activity,” said White. “We can’t tar everyone with the same brush, and we must shine a light in the darkness and support those who have done nothing wrong and are running legitimate, honest businesses.”
White is calling on lenders and aggregators to do their due diligence to ensure brokers not involved in any wrongdoing aren’t unfairly treated.
Anja Pannek, chief executive of the Mortgage and Finance Association of Australia (MFAA) said the MFAA “is aware of the circumstances involving Hai Money and understands this is a difficult and uncertain time for many brokers and their businesses”.
She added: ”As details are still emerging and not all information is publicly available, it would be inappropriate to speculate on the specifics. We encourage those impacted to engage directly with their licensee, carefully review their contractual arrangements, and seek appropriate legal advice where needed.
“The MFAA remains focused on supporting members with practical guidance and upholding professional standards as the situation continues to evolve.”
Hai Money founder Bruce Li said he is open to working with Finsure chief executive Simon Bednar to resolve the situation for Hai Money’s brokers.
