TV: Disclosure docs putting squeeze on broker business

by Adam Smith21 May 2012

Time-consuming compliance documents mean some brokers are having to turn business away.

Kellie Lam of Abacus Home Loans has told Australian Broker TV that the complexity of NCCP disclosure documentation and the time involved has hurt her business.

"The timeframe involved is dramatic cost-wise. Our business actually did drop because of the process," Lam said.

Lam said her business is part of the 1300 Home Loans network, and had to reject leads because of the paperwork burden.

"We could not actually take more clients in. We had to reject clients. When given leads, we had to turn them away," she said.

Vicki Grey of Gadens Lawyers agrees that the paperwork involved in disclosure represents a burden on brokers. But Grey said the complexity of the disclosure documents also hurts consumers.

"In think the disclosure document regulations are very complex, and they're unnecessarily complex. The problem at the moment is you have so much disclosure, and when you have so much disclosure we find that consumers tend to turn off," she said.

For more on the complexity of disclosure docs, and the MFAA campaign to simplify the process, see our exclusive report on Australian Broker TV.

Related stories:

Ditch disclosure docs, MFAA tells government

COMMENTS

  • by Ripped off broker 21/05/2012 10:34:59 AM

    spot on, some much red tape that you could almost mistake yourself for having some governement office position where productivity only applies to the mining sector.

  • by Country Broker 21/05/2012 10:55:06 AM

    am I a one out , if you use a CERM that popultaes all your disclosure documents it is not that difficult , get the credit disclosure out immediatly the client is in as an enquiry and then collect the information (you should know hat that is) and then the system if it is a good one should Generate all that you need to give the cleint ready for signing automitacally.
    I am not that technically minded and i can do this and do not find it a burden.

  • by Ken Crawford 21/05/2012 11:10:41 AM

    I must be on another planet?The documents used now, apart from some changes to the logos, are very similar to those I was using immediately prior to NCCP. Yes the privacy document (Credit Guide) might be longer, and yes there can some repetition between Credit Assessment and Credit Proposal documents, but in the main I am taking the same time to do my interviews as i always have.

    If anything needs to be adjusted it is the disparity between real estate and NCCP legislation. Costs? we have to have a few more files, but then that is only good business and I have never had a case where the client has been fazed.