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Risks flagged in broker-linked mortgage controls

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Australian Broker | 28 Apr 2017, 08:25 AM Agree 0
Inconsistency among broker vetting by the banks could put lenders at financial risk, says one credit expert
  • Denis Hill | 28 Apr 2017, 08:53 AM Agree 0
    Being a finance broker for 12 years and a banker before that I would really like to know where all these easy lenders are that keeps getting talked about on these pages. Every week I read the same thing that its the brokers fault if the economy and banking system colapses because we get loans through that are very poor quality.
    Tell me the lender who does this so I can send them some deals.
    I find all the lenders I deal with have very strict serviceability and lending guidelines.
    I have to work very hard to get very good quality loans through especially investment loans over the past 12 months.
    Some of these people having track records going back 20 years and have never missed a payment on any lending but are scutinised to the enth degree.
    All the lenders I deal with have interest rate serviceability tests at over 7% and take between 65% and 80% of rental income.
    Where is the easy lending in that????

  • Country broker | 28 Apr 2017, 10:47 AM Agree 0
    I really get quite amazed at the assertions of some so called experts.
    As a broker for 14 years and in mortgage finance and banking before that , I am finding that the banks and other lenders have as strong as ever credit standards. They are testing capacity with rates well above what they were, it not the broking industry fault that over 50% of home loans are now sourced via the third party channel, more like good management and determination. The vetting of broker origionated deals is as strong as ever
    I also take issue saying simply the start of the GFC was due to 1/3 of loan being in arrears, is hard to swallow , what about 105% loans, on fixed rate ( do not and never have existed in Australia) . selling of Mortgages as AAA rated when they were not , selling CFD deposits and so on.
  • bettina westaway | 28 Apr 2017, 11:47 AM Agree 0
    Having been in the broking industry for 12 years I too am thinking this is a badly investigated article or badly written based on a persons opinion and assumptions. What happened in the states was caused by greed and a lack of controls. The Australian mortgage industry has a high level of lending criteria serviced by mortgage professionals who provide an excellent service resulting in capturing the biggest market share. Should the Australian economy decline due to lack of good governance is not the fault of the broker. Should borrowers default on loans due to the economy shrinking even further if not the fault of the broker. While the economy is fairing well borrowers meet their loan commitments. Should the borrowers lose their full time employment and default, will this be blamed on the broker? We are not in charge of the economy, be that internal or global.
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