CBA’s new broker requirements ‘a barrier’

by Caroline Dann12 Oct 2012

CBA’s new loan submission requirements have been labelled a ‘barrier’ which could delay approvals.

Effective Monday, the major requires all brokers submitting loan applications to obtain and check a client’s most recent transaction account statement for “any commitments that may not have been disclosed at the time of the application.”
Award-winning broker Benjamin Campbell contacted Australian Broker Online to raise concerns over its effectiveness.
“It is not hard to see a result where brokers will simply have to request all statements for every non-debt account from the customer just to satisfy the assessment, and have it fully assessed the first time which will increase work load and customer management in the process.”
While he acknowledged the new rules would improve risk assessment for CBA, it risked “decreasing the experience for the customer’ and could delay approvals “and [increase] the chance of decline.”
“Considering how many customers have multiple accounts with multiple institutions the exercise could simply become a barrier to entry,” he said.
“Further to that, the CBA already requires broker submissions to provide debt statements which are above beyond the majority of other lenders requirements that are on my panel.  
“Sighting that the lender already punishes brokers via reduced commissions for applications that do not pass quality submissions metrics, there is further risk of reduced commissions as a result of this requirements.”


  • by Philthyo 12/10/2012 9:58:27 AM

    I thought part of the NCCP requirements was to verify the clients financial situation. How can you assist with credit if you don't look at ALL available financial information. I can't believe the comment that it will increase the chance of decline - wow fancy declining a loan because you discovered some undisclosed debt that blows the deal out of the water!!!

  • by Broker IQ 12/10/2012 10:18:14 AM

    Wouldn't all mortgage brokers do this already??? It's in their interest to be observant and diligent in this area.
    I don't get surprised anymore when brokers get upset about being asked to do an efficient job when preparing a loan application...and actually EARN their commission!

  • by Melbourne MM 12/10/2012 10:20:25 AM

    Couldn't agree with you more Phil. As a credit assessor it's amazing the number of times I see an inadvertantly supplied transactional bank statement or Line of Credit / Offset account throw up an undisclosed committment. I would have thought it was in the brokers own interest to ensure everything is disclosed - it's called credit prudency....and really, is it that much of an impost for a client to dig out their latest statement (usually easily accessable via on line banking)???