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Queensland banking hoax should serve as warning to brokers

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Australian Broker | 01 Apr 2016, 07:00 AM Agree 0
A sophisticated banking hoax in Queensland should serve as a warning to brokers, the FBAA has cautioned
  • Tim H | 01 Apr 2016, 11:10 AM Agree 0
    What Peter is highlighting here is a question I have been considering for some time regarding on-line lenders.
    A recent article indicated one organisation now had an app where the clients could email their payslips, bank statements, identification documents etc to support an on-line application without the need for the broker to meet face to face with the clients.

    How is this satisfying the NCCP guidelines, how are these brokerages documenting that they have verified the details and ensured their bona fides? What does ASIC think about this on-line verification process?

    I for one would rather complete a face to face meeting and satisfy myself of the borrowers' details that way than rely on information emailed through on an app.

    My trailer income is too valuable to me to put it at risk in this manner.
  • Papery | 04 Apr 2016, 10:37 AM Agree 0
    Ive also seen a number of Brokeage's (not Lenders) begin to develop online applications and even going so far as to promise an approval in a few short hours. Not sure how any Broker can deliver any approval in this fashion & further I cannot see how any Aggregator or Licensee an let this sort of disceptive advertising get through...even on Fb!
  • Damien N | 08 Apr 2016, 09:43 PM Agree 0
    Online approvals are easy to accept as they are "subject to" providing necessary documents to validate their claims. It would be exactly the same as how banks approve loans.
  • OzBoy | 11 Apr 2016, 09:15 AM Agree 0
    Damien I think you are right except for one thing, a broker doesn't supply the funding whereas a lender does. In that case a broker would be unable to provide the "subject to" as the broker does not approve the loan the lender does.
  • Papery | 11 Apr 2016, 05:56 PM Agree 0
    I'll go so far as to say its very misleading & bordering on deceptive, given that many average Joe's don't understand the difference between a Home Seeker Approval, AIP, a Conditional approval or an Unconditional Approval, let alone the fact that under NCCP even a full approval has a time limit. They have no idea that even if the 'subject to' criteria is met, their 'approval' can still fall over.
    How may stories do you hear of buyers who have entered into a contract waiving the finance clause because they spent 5 mins doing an online application or had a quick chat with a local branch member who punched a few figures into their desktop PC.
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