“They’ve used a sledgehammer to kill an ant and right now we are so over-regulated with the amount of paperwork we have to wade through – and the hypocrisy is that the lenders don’t have to do it. So we get slashed, but the actual branch managers? They’re not held to account. We are.”
Kelly says he can ‘put his hand on’ four brokers who, along with himself, have a combined history of 120 years in banking. Yet, he argues, these experienced brokers are being ‘absolutely crucified’ by a ‘ridiculous’ on-going paper war.
“At some point they’ve got to have some sort of meeting of the minds to say ‘look, we’ve gone overboard. We’ve done the wrong thing. Let’s attack those products that really need it like the low-docs, the non-conforming, that type of thing.”
Lenders are exacerbating the problem, he says.
“They’re reducing the amount of requirements that you need to get a loan through. I’m consistent with what I ask for, which is full tax returns, payslips, bank statements - the whole box of dice. I’ve always asked for the same things regardless of the lenders. But some of the lenders, just to make themselves better in the eyes of the brokers, are reducing the amount of requirements – and they can do that because they’re not under NCCP.”
But brokers are under NCCP, notes Kelly, and this is where he starts to get worried.