Hypocrisy in loan application requirements has broker fuming

by Mackenzie McCarty04 Apr 2013
“I’ve got an issue that I think could come to a head, that if the banks continue to reduce the amount of paper that they require and we’ve got lenders that don’t have to comply, if something goes wrong, who cops it?”

“I think the information that we ask for and what we’ve been asked for in the past is not rigorous, it’s not over-the-top. We’re being asked for consistent information which allows them to properly assess if the client can have the loan. But if these lenders continue on the path of ‘we want to make ourselves look great, so let’s only get one pay slip’ - and I’m not kidding, there is a lender out there, a major lender, that’s doing a one-payslip loan. How do you get a loan on one payslip? It’s just silly. And that person has to comply with NCCP. One payslip does not allow you enough information to justify whether a person can afford a loan or not.”

Furthermore, Kelly believes, the MFAA has let brokers down.

“I believe they’ve rolled over on what has been a ridiculous policy coming through from the federal government and I believe that we need a strong body to stand up and say: Let’s re-look at this, because right now, it’s just over-the-top.”


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COMMENTS

  • by simon sami 4/04/2013 9:42:41 AM

    its ok to accept one payslip, if overtime , penalty rates, etc to be included than more payslip should be reqd.

  • by George 4/04/2013 9:47:30 AM

    They only ask for one payslip when the year to date info is on them

  • by OzBoy 4/04/2013 9:49:54 AM

    Mr Kelly it's your business, your licence and your butt on the line. Don't worry about what the lenders want do what you need to do to satisfy yourself and the regulators. Stop getting worked up over minor things that you have no control over.