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Low-docs 'not dead' under NCCP: MKM Capital

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Australian Broker | 20 Sep 2011, 04:00 AM Agree 0
The NCCP has not killed off the non-conforming low-doc industry, or demand from applicants wanting non-conforming low doc loans, according to low-doc lender MKM Capital
  • Confused Broker | 20 Sep 2011, 10:50 AM Agree 0
    The reason most brokers are not dealing in Lo Doc loans at the moment is not because of the restrictions of bank policy surrounding Lo Docs but the fact that in order to maintain your ACL under an Aggregator you need to go above and beyond the requirements of the lender in order to verify the applicants income. This includes BAS statements, tax returns, letters from Accountants. So while it's all good and well to say that you can still get a LO DOC under 60% without BAS etc, you still to work within the requirements of your aggregator in order to hold onto your ACL. ASIC need to come ot and be clear as to exactly what types of verification are acceptable for a Lo Doc loan and this needs to be adopted consistently across the industry.
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