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Time for brokers to get their heads out of the sand when it comes to risk management

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Australian Broker | 03 Jun 2013, 08:00 AM Agree 0
Many brokers are doing the bare minimum when it comes to risk management - even the UN is upset
  • Stan Fournarakis Vic Broker. | 03 Jun 2013, 11:11 AM Agree 0
    Greg Ashe from QED i totally agree with you. Our job is not a form filling exercise that requires no thought process. Unless you the broker is convinced that your applicant/s pass your pinch test how can you put it up to the banks? If you hope for the best and do put it up then you expose yourself and the client/s because of half truths through negligence. If audited, what will your files and risk records reveal ? What i do is at the time of face to face interview, i always do as MUCH OF THE GROUND WORK IN FRONT OF THEM. Filling out ALL COMPLIANCE forms virtually answering all required questions Why not add some more of your own while you are at it. Having gathered, signatures, ID, and yes diary notes read back to clients right then and there, you are safe, compliant, and satisfied that if the client fails for reasons unknown to you and starts pointing the finger (and a lot do if cornered) then your back up material was derived from smart, responsible behavior on your behalf. After the interview, back at the office, its only a matter of going online and typing up the application for the loan. When its time to risk rate your work either by getting someone else to do it every quarter (second pair of eyes on your work) at least once all compliance checks come up satisfactory, then all should be well. I say should because, ONUS SHIFTING is the new world order. Your job usually is to hopefully assist someone to make an informed financial decision which carries a lot of risk for all participating parties concerned. I would not risk my license for anyone, especially in an economic climate which has left and continues to leave many people financially crippled.
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