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.
Who's to blame for submission problems?