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Borrower education 'fundamental' for brokers

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Australian Broker | 18 Jun 2012, 06:00 AM Agree 0
Educating borrowers is set to become a 'fundamental part of the mortgage process' according to one industry consultant
  • stormy waters | 18 Jun 2012, 10:58 AM Agree 0
    "It would be unusual to sell a consumer a high powered car without first making sure they knew their road rules or had a driver's licence"...good attempt at an analogy, but I've bought a few cars in my time (some of them with many horses under the hood) and have never been specifically asked for my driver licence, just ID. Testing consumers knowledge will be a turn off, but educating consumers about their loan and the options available is always warranted.
  • Jeff Mazzini- AAMC Training Group | 18 Jun 2012, 12:14 PM Agree 0
    I believe it is compulsory in the USA for borrowers to attend a half day training course and I feel it will also become compulsory in Australia for borrowers to undertake education as well, given we have a low level of numeracy and literacy skills within the country.
    I have viewed the software and fully support its use to ensure that consumers are educated and have a full understanding of their roles and responsibilities they also play when borrowing money. Imagine when the consumer can no longer say I did not know what I was signing for, maybe PI may even reduce in due course.
    I feel this is the first step in the ongoing up skilling of borrowers and there are many other exciting things to follow this and other initiatives currently been worked on.
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