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Second-tier lender turns screws on loan application process

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Australian Broker | 15 Feb 2017, 08:25 AM Agree 0
The lender has brought in strict new credit rules that require new borrowers to detail both household and discretionary spending
  • Com | 15 Feb 2017, 09:30 AM Agree 0
    I am so glad that a lender is stepping up to the plate, it is difficult that as a mortgage broker you are expected to detail a customers living expenses and yet lenders do not seem to have the same requirements. It is all to do with the preliminary assessment and the fact that lenders pass the obligation onto the broker to complete these detailed assessments, which i understand but it is still frustrating.
  • Simon | 16 Feb 2017, 10:09 AM Agree 0
    Hi Com,

    I agree to a point, however no doubt we will now see 20 different interpretations of what quantifies as a living expense, what is discretionary, etc. All of which will be passed onto the broker to verify.

    If it stops branch staff (and some rogue brokers no doubt!) under-declaring or in some cases not even reviewing living expenses then it can only be to the improvement of the overall industry, and protection for individual borrowers.

    I'm proud that our organisation is generally two years "in front" of the MFAA and lending institutions in our compliance and customer review obligations. I can sleep at night, knowing all of my clients have been well informed and made realistic judgements of their financial capabilities.
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