Lender calls on peers to stop the broker 'blame game'

by Adam Smith24 Jun 2014
A broker head has called for an end to the “blame game” on loan quality.

ING Direct head of third party distribution Mark Woolnough has argued that brokers often feel unfairly targeted in discussions of loan quality. Woolnough said the fact that loan quality is “a two-way street” is often not communicated to brokers.

“Sometimes brokers feel that when banks talk about quality it’s a one-way blame game,” Woolnough said.

Woolnough said advances in technology will help lenders to address their own processes. He pointed to NextGen.Net’s ApplyOnline technology, and said it amounted to an investment in banks’ internal processes.

“Upgrading to ApplyOnline+ enables lenders to identify areas in their own processes that historically may have contributed to the inefficiencies,” Woolnough said.

Woolnough said the technology also allows for a more seamless process in dealing with a variety of lenders.

“One of the issues facing brokers is that they feel they should be competent and up-to-date with the policies and processes of their entire lender panel. However with so many lenders and the increasing burden and impacts of compliance most will concentrate on a smaller and more manageable panel. ApplyOnline+ has removed many frustrations in the end-to-end process by providing speed, scale and certainty around what meets a lender’s requirements, irrespective of whether the scenario is simple or complex,” he said.

COMMENTS

  • by Papery 24/06/2014 8:56:23 AM

    Wish the answer was as simple as a 'one size fits all' online application process.

    Its easy to make sure you fulfil the requirements of a minimum docs checklist, for a vanilla deal, but in my experience, most deals come with their own specific nuances which usually requires more commentary or perhaps a little more 'off checklist' support docs; not to mention the ability of the Lender's assessing officer to look outside the square & assess things with a common sense approach & not just decline because the 'puter says so & thats the easy thing to do, so the assessor can meet the 3.5mins they have to decision the request to meet their KPI target & achieve bonus.

    WE are still dealing with Lenders who maintain the 'reasons to decline' approach instead of looking at the mitigants of each deal & 'reasons to approve'.

  • by Broker 24/06/2014 2:42:57 PM

    CBA - They are talking about you.
    Surely there is enough to clean up in-house before worrying about what Brokers quality!