Non-conforming spring as 'wait-and-see' ends

by Ben Abbott30 Jan 2012

Non-conforming lenders have been tipped to become increasingly visible this year as they vie for their share of broker business.

MKM Capital head of operations Michael Watson has said that brokers can expect to see non-conforming lenders "spring back into action" this year following the legislative challenge of 2011.

However, he said that these lenders will have to face the ongoing challenge of reasurring brokers non-conforming low-doc loans can be written in an NCCP compliant way.

“The biggest challenge arising from the introduction of the NCCP has been to communicate to brokers that low doc, coded loans can still be written with confidence in the NCCP environment.

"I expect to see competition in our particular segment heat up after a period of ‘wait-and-see’ last year," Watson told Australian Broker.

Watson said that brokers should capitalise on any non-conforming clients they find, as a continued tough credit and business operating environment is expected this year.

“Brokers must capitalise on non-conforming opportunities as they arise – even if it’s only one every few months," he said.

Watson said MKM Capital was focused on building relationships, as well as service and products.

“Factors such as recent legislative changes, housing market concerns and local and global economic conditions will each play their part in how 2012 pans out," he said.

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Low-docs 'not dead' under NCCP: MKM Capital