Brokers should be doing more to distinguish themselves as experts after APRA voiced concerns over ‘disconcerting’ credit assessments from banks, says the FBAA
CEO Peter White
says APRA’s warning serves as the perfect reminder for brokers to promote their unique benefits and personalised service.
“Finance brokers have been rigorously checked year after year and through the NCCP, industry compliance and regulatory standards have never been better,” he said.
“Unlike some of the banks, brokers follow rigid instruction for lending procedures. They look at the total capability to repay and service the debt and fully abide by responsible lending practices.”
White’s comments come after Australian Broker reported
on APRA chairman Wayne Byres warning banks about the importance of vigilant credit assessments, after the outcomes of a hypothetical borrower survey were “a little disconcerting in places”.
“The outcomes for these hypothetical borrowers helped to put the spotlight on differences in credit assessments and lending standards. The outcomes were quite enlightening for us – and, to be frank, a little disconcerting in places,” Byres said at the COBA CEO & Director Forum in Sydney last week.
White added that the public needs to be continually reminded of the advantages of using a finance broker and has urged brokers to never assume people understand the difference.