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Desperate times call for desperate measures, and it seems the prospect of a $91 million first half loss has prompted the Bank of Queensland to send out an SOS to Australia's mortgage brokers for immediate assistance.

But here is the rub - because it viewed them as competitors, BoQ turned its back on mortgage brokers a decade ago. 

However, according to a report in the AFR, new CEO Stuart Grimshaw has identified re-opening the mortgage broker channel as one of his short-term priorities to turn the bank's flailing fortunes around.

But the strategy is likely to become a high mountain to climb.

Firstly it risks incurring the wrath of the around 260 owner-managers of the BoQ franchised branches.

And, while the move has won strong praise from analysts for moving to raise capital the plan to do so through brokers has not been as well received.  

One analyst's comment was he did not believe "writing unprofitable mortgages via brokers in a funding constrained world" was the answer.

Meanwhile brokers themselves have been scathing of the initiative - enthusiastically so.

Writing across many media channels most brokers agree that the trust element between the third party channel and the BoQ brand was severed 10 years ago, and it appears there is little faith among them that it will be restored. Especially under these circumstances.



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