Brokers take aim at banks on submission criticism

by Adam Smith21 Jun 2012

Brokers are none too happy at being blamed for application hold-ups, saying banks need to take their fair share of responsibility.

Yesterday, MPA Online delved into the contentious issue of submission quality, with CBA's Kathy Cummings saying the onus is on brokers to know a lender’s loan products, credit policy and submission process to ensure their client’s financial and customer service expectations are met.

Brokers on the MPA Online forums have returned fire, saying banks are the ones who often get it wrong.

"A lot of time is spent by brokers trying to second guess what a lender may require as in many cases the correct and required documentation is supplied but the assessor comes back and requests something completely out of left field - basically the assessors require more training," Perth Broker wrote.

Vbliquidity suggested that banks move to standardised forms to cut down on errors.

"The home loan application is as simple as the ATO tax pack! A home loan is a commodity. It's up to each lender to assess the same info on the basis it is correct. The backend of the banks are unsophisticated & the IT departments have bamboozled the business units for so long it's time the BU's took back the reins! The technology exists for data matching all forms of financial info."

Meanwhile, Rod claimed banks are repeat offenders when it comes to missing documents as well.

"Most of my problems come after when the loan is approved. There is a large number of times I have to follow the lender up with documents not issued or issued with incorrect information. Documents being lost in transit should be a big concern for the lenders."

But some brokers leapt to the defence of lenders, saying the third party channel needs to up its game.

"Brokers should stop making excuses for their poor workmanship. If a broker can't submit a deal with all the necessary supporting documents, then they shouldn't have a licence," David said.

"Yet again brokers are perfect and lenders are the problem, judging by some of the comments above. Let's get real. Sometimes a lender asks for more information because the information submitted is deficient or contradictory. Lenders do want to get the deal through first go - why would they ask for something they don't need?" Mark added.

Related stories:

Who's to blame for submission problems?


  • by Brisbane Broker 21/06/2012 10:39:23 AM

    Why anyone want to deal with CBA. I'm a broker now for 7 years and never used CBA. There are so many other lenders that have better rate & products than CBA.

  • by melo 21/06/2012 10:52:29 AM

    Most Lenders ,more so CBA have complicated what should be very simple straight forward process.I believe 90% stopped applications could be avoided with straight forward checklist and process.I.E Anz process.Up front valuation,one pay slip always YTD Income,1 years tax returns for s/E + on floor LMI.Most of our application come back unconditional in 24 hours with anz.Rest pack look for reasons outside check list ,to stop,condition or decline loans, even on most straight forward of deals.Many conditions placed on loans havent been invented yet, as after 20 years still seeing them.Plus 1 phone call could avoid other 10% of stopped application>YES Just use KISS system.Further non Majors have to be easier ,otherwise they wont get sniff as they taken process to new level of unnecasserily pendatic to ridiculous.

  • by Incognito 21/06/2012 11:16:27 AM

    Bank's are staffed by people - sometimes young people. And loans can be tricky.

    But banks !PLEASE! do something about variations & increases. These things are impossibly cumbersome.

    I recently did a FULL DOC $108k increase to 80% LVR (clean credit, perfect repayment history) and it involved over 40 emails of correspondence.

    It's absolutely tragic..