Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Hypocrisy in loan application requirements has broker fuming

Notify me of new replies via email
Australian Broker | 04 Apr 2013, 08:00 AM Agree 0
Sydney-based broker Andrew Kelly says he's afraid of what will happen should 'one-payslip' loans become the norm
  • simon sami | 04 Apr 2013, 09:42 AM Agree 0
    its ok to accept one payslip, if overtime , penalty rates, etc to be included than more payslip should be reqd.
  • George | 04 Apr 2013, 09:47 AM Agree 0
    They only ask for one payslip when the year to date info is on them
  • OzBoy | 04 Apr 2013, 09:49 AM Agree 0
    Mr Kelly it's your business, your licence and your butt on the line. Don't worry about what the lenders want do what you need to do to satisfy yourself and the regulators. Stop getting worked up over minor things that you have no control over.
  • Moonae | 04 Apr 2013, 09:55 AM Agree 0
    I see all this as a long term positive. It helps us differentiate as experienced professionals. Change is difficult but in the long run worthwhile. I do agree though that the average consumer out there has no idea about the obvious, absolute and unquestionable benefits of Broker over direct and the MFAA & FBAA need to prove their relevence very quickly otherwise Brokers as a collective will dump them and do it themselves
  • JohnW | 04 Apr 2013, 10:04 AM Agree 0
    First talks about the red tape in brokering due to NCCP, then wants to make more paperwork required for submissions of loans? I'm confused. Not every clients is so complicated that we need to move in with them for 1 months to acertain thier financial situation. Some are straight forrward where 1 payslip evidences thier income. Talk about a storm in a doll house tea cup.
  • Tim | 04 Apr 2013, 10:11 AM Agree 0
    I gather from his comments that Andrews' beef is simply not just about the "one payslip" requirement but a general frustration about the lowering standards within our industry despite all the chest beating from lenders, industry associations and ASIC to the contrary.
    A broker colleague coined the term the "Dumbing down" of our industry when referring to the assessment of applications and the lack of basic knowledge that is endemic within the lenders staff and also in the case of a lot of new brokers to the industry.
    Ozboy you are correct to say to Andrew keep his own standards up but I do think that many of the players in our industry need to have a good look at themselves and put the focus back on good credit assessment practices.
  • Broker Tony | 04 Apr 2013, 10:16 AM Agree 0
    I'm with OzBoy. I undertake my own due diligence as I am required to do under my licence and as I have done for 30 years before NCCP. I would prefer the lenders reduce the amount of paperwork they require. Every piece of paper we provide has a chance of being rejected on a technicality whether it is relevant to the application or not. I know that fraud is a problem but the banks have to toughen up on rogue brokers even if they do produce good volumes. Clean the ratbags out of the industry and we will all be better off.
  • Sand Groper | 04 Apr 2013, 10:25 AM Agree 0
    There are some worthy points. I do thou believe we need to simplify. We are way to repetitive with our requirements quite often repeating ourselves with NCCP requirements and asking for additional pay slips when one pay slip clearly covers the requirements. I think contary to what Ozboy says we need to challenge the NCCP requirements in a host of areas where commonsense goes out the window. We have been bullied into becoming to subservent with a lack of discussion within the coalface of the industry.
  • AaronG | 04 Apr 2013, 10:26 AM Agree 0
    The idea that regulation would get the 'schonky' brokers out of the industry pre-supposes that 'shonky' brokers don't know how to do mountains of paperwork. It was always incredibly naive. I remember going to meetings and actually listening to brokers cheer the coming regulation and I used to think what a bunch of fools. Here it is! do you like it? What a surprise that the government isn't doing things smart or fair and has no regard for the individual needs of brokers. You expected a different outcome? We now find ourselves in the extrodinary position of arguing whether one or two pay slips should be good enough for the NCCP. Why not just kneel and pray at the government altar and beg them to let us do the jobs we've been doing exceedingly well for years? I always find myself asking the same question -- What was the problem that regulation (governemnt vs. internal industry) solved?
  • Keith B | 04 Apr 2013, 10:48 AM Agree 0
    I don't see the issue, we are governed under NCCP which is acknowleged and our requirements are quite clear irrespective of indivdual lender stipulations. Failure to do so has for us from very serious implications!
  • Papery | 04 Apr 2013, 11:47 AM Agree 0
    Shonky Brokers know how to rort requirements & fudge any mountain of required paperwork, NCCP or no NCCP. The kicker is when they get caught & who ends up being complicit. The problem lies is that the 99% of profesional, well experienced & honest Brokers get caught up with justifying the good work we already do. At the end of the day the extra paperwork does not make our clients and deals any better, we just keep the regulators happy with more paper to wade through & more documentation for the Legals to throw around when the litigation begins, warranted or not!
  • Concerned broker | 04 Apr 2013, 12:33 PM Agree 0
    Everything must be consistent on all levels with all parties, i.e. brokers and lenders. The issue is the bank staff don't need to comply with NCCP, brokers must. This is a conflict that needs to be addressed. I was in a queue at a bank branch overhearing a client going through a home loan process. What I was hearing from the staff member left me in disbelief. A broker can not get away saying what the bank staff was saying to the client, mainly would be in breach of NCCP. The client was only nodding to the mambo-jumbo presented. He was sold in 15 minutes. How long does a broker's loan process from interview to sign up last?
    Let's make a level playing field for everyone and no-one will hold grudges!
  • The Observer | 04 Apr 2013, 02:15 PM Agree 0
    I am with OzBoy on this one! I am not aware that NCCP drills down to whether 1,2 or more payslips are required. NCCP seeks from brokers a systematic/checklist type procees to assess loan applications but does not tell you how to do it. What I can see is there there are many shades of grey!
  • Brado | 04 Apr 2013, 05:46 PM Agree 0
    @Concerned Broker.... you have hit it on the head.... the REAL issue is that lender branch staff do not need to follow NCCP and they are the cowboys in the industry, providing ill informed advice and potentially placing people into unsuitable loans...
Post a reply