There is no difference between the current low-doc lending scandals and a footy team member who has brought his team and club into disrepute, according to one non-conforming lender.
In a colourful defence of low-doc lending following fraud claims surrounding the sector, MKM Capital argues that in sport a club doesn't just shut down if it's players do bring the team into disrepute.
Instead, it asks the player to toe the line, or cuts the player loose and moves on.
Listening to all the hoo-ha lately on low-doc lending it sounds like pundits are writing off the entire industry," MKM Capital's head of operations Michael Watson said.
Watson said the NCCP has already "spear-tackled" brokers and lenders "who took it easy in the off-season".
"Brokers have been forced to accept uniform, higher standards. Private lenders and products have exited in droves and standards have increased at lenders that may have been a little too relaxed in their attitude to credit."
Watson said the GFC has also caused brokers to exit 'en-masse' leaving only the fittest in the industry to survive.
"Do low doc loans even exist anymore? No, not really," he said.
"It’s like ‘player loyalty’ or an articulate Collingwood supporter (were there ever any?). Lenders are moving towards terminologies which mirror the fact loans aren’t just being dished out like luke-warm pies at the ‘G anymore – if they truly ever were in the first place."
Watson gave the example of MKM's flexi-doc product. "Sure it isn’t a full-doc, but there is more to it than signing a bit of paper and getting an approval."
Watson suggests the market take it "one game at a time".
"Let’s remember that we’re in September 2012 and the game has moved on from the way it was played five years ago," he said.
"The non-bank low-doc industry isn’t hanging up its boots. It has transitioned into the professional era. Reviewing pre-2008 issues is like watching old footy games. Some may remember them fondly but the game is played completely different nowadays."