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New rules for banks could cost brokers

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Australian Broker | 11 Jun 2015, 07:00 AM Agree 0
Australian banks’ transition to Basel 4 regulatory requirements could come at a cost to mortgage brokers, according to J.P. Morgan
  • SEQ Broker | 11 Jun 2015, 10:00 AM Agree 0
    Come On.... Surely there has to be a point where compliance has become hindrance to the economy. Pay slips, evidence of pays going into a transaction account, verbal checks with employers, tax returns, income assessment notices, group certificates etc.. There is only so much you can get as far as certainty of income. The regulators are so worried about the 1% that they are missing the 99%. A client can lose their job a week after settlement, what next, regulators will require employers to guarantee employment so their staff can buy a home... The system we have now has sufficient checks and balances. Fraud by Brokers, Banks and Borrowers is very low.
    Regulators, stop justifying your salaries by making over the top regulations... As at this point you are probably redundant.
  • John | 11 Jun 2015, 10:46 AM Agree 0
    It looks the regulators are jumping at shadows?
    If you don't trust Banks, brokers, employers, customers, then why don't you have ALL information certified?? Ha Ha, not going to happen. Who will put their name on docs if they don't know.

    At some point this has to stop, so please don't assume, overall we have a very strict process.

    SEQ Broker you are correct 99% is VERY GOOD.
  • Macarthur Broker | 11 Jun 2015, 11:12 AM Agree 0
    Couldn't agree more with SEQ & John. What is the problem here. If I am referred a client and get two payslips, a PAYG Summary & a bank statement showing salary credits is that not enough. Sure I can ring an employer, but do need to get certified ID from the person I am talking to to protect me from fraud? Regulators are in the process creating a property crash like we have never seen before because banks are becoming too scared to lend. Red tape will cripple this entire industry if we are not careful.
  • Rocket Scientist | 11 Jun 2015, 11:20 AM Agree 0
    That'll do me...
  • marty | 11 Jun 2015, 11:42 AM Agree 0
    This is surely not going to be applicable in resi space. We need to mobilise against this. It is utter BS.
  • regulation | 11 Jun 2015, 11:53 AM Agree 0
    George Orwell missed one thing in his book....a time when we regulated every job & task out of existence.
  • Papery | 11 Jun 2015, 12:08 PM Agree 0
    I have visions of a mad man in a dark room with crazy white hair & crazy eyes rubbing his hands together & laughing maniacally while he comes up with this tripe.
  • Tipping Point | 11 Jun 2015, 09:40 PM Agree 0
    Come on J P. Its a report for a reports sake when there is nothing to report! Maybe asking brokers to guarantee their clients loans will come out in Basil 5. Basil faulty towers.

    Consumers at 51% on home loans via brokers is only going north.

    Make an impact on the novated leasing and car finance which slipped outside the ASIC regulation and you'll find a turbo charged sugar trail. You heard it here first!!
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