Get a handle on fees with IT

David Chessell

In the big debate about whether mortgage brokers should charge fees or rely purely on the lender’s proc fee in order to make money, it can be hard to keep a track of how much you are being paid and by whom.

This can especially be the case if you get into the territory of refunding some of your commission to your clients in the way that many IFAs are forced to do now the Retail Distribution Review is upon us.

It is, of course, easier if all your clients are fee paying or commission based but, if they are not, how do you reconcile what you are getting from whom and whether you’ve been paid or not? This can be more complicated again if you’re a DA and you get paid by different mortgage clubs under different conditions.

Your saviour could be your IT system. An intelligent system should enable you to log, monitor and automatically reconcile fees, retainers and commission so you know exactly where you are at any given time. Ideally you need this linked to each client’s file as well as to your account’s system.

This way you can see across each client and each mortgage club, lender or your network, what you’ve been paid for, how much you’ve been paid and what money is still outstanding.

If you’ve got a system that can spell all this out for you, it can provide you with huge time efficiencies, and of course, time saved on admin is time that you could spend with clients instead.

It also enables you to have a really good handle on your business, your cash flow and how profitable you are. Whatever system you’re using you should be able to see a really clear picture of what you’re earning money on, with a break down by client types, by product type and you can also use it to show how profitable any leads you buy are.

Anything that puts you strongly in control of your business, gives you a firm handle on your profit margin while also lets you spend more time with your clients has to be something that no successful adviser can do without these days.