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.”