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Who's to blame for application problems?

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Australian Broker | 14 Jun 2012, 12:00 AM Agree 0
Are brokers unfairly bearing the blame for loan application problems? MPA investigates submission quality and what all industry stakeholders can do to up their game
  • Belinda | 20 Jun 2012, 11:34 AM Agree 0
    Every single application I submit to Westpac comes up with an error saying it's on my behalf that I haven't put a post settlement mailing address in for the client when I know all too well that I have put this in. I have brought this up with my BDM several times to no avail.
    As for brokers failing to submit correct payslips etc, that's just plain laziness....there are checklists for a reason!
  • PeterT | 20 Jun 2012, 11:36 AM Agree 0
    I'm going to name and shame...

    Bank of Melbourne has made stupid mistakes on every deal I've sent them. From as petty to asking for documentation which has already been submitted, to dropping loan splits and errors in the clients name.

    What I don't get is that we electronically send the data too them in the application. Why is it that it changes without at least contacting us, or it simply goes missing.
  • Perth Broker | 20 Jun 2012, 11:37 AM Agree 0
    I totally agree the lenders need to take some responsibility for this. A lot of time is spent by broker trying to second guess what a lender may require as in many cases the correct and required documentation is supplied but the assessor comes back and requests something completely out of left field - basically the assessors require more training. With regard the comments from the CBA, they are in no position to talk. In WA I don't even know who my BDM is now and he or she is completely missing in action.
  • Mark Moenting | 20 Jun 2012, 11:37 AM Agree 0
    The with in built check list and you have transparent application for both parties. We need to take away the human error factor as a lender excuse. We cannot prove our point unless we apply a process that supports the brokers who deliver best practice. Obviously this will benefit the lender as well and you will find that lenders will then source these brokers as preferred partners.
  • Wes | 20 Jun 2012, 11:40 AM Agree 0
    I can only speak from my perspective and experiences. I am fastidious about following application checklist requirements and I reckon there are two problems. One, Banks - especially CBA constantly change their processes and supporting docs policy and forms. Some application forms are tricked up to make them more complex than they need to be. If Banks want to be helpful, stop making these excrutiating and complex changes. Second, missing information requests are often a ruse to get file movement off the coordinators desk. If they find an error its one less file they have to deal with and they can take the pressure off the bank to hit a service level commitment. I had a 12 item missing items list from one bank only a few months ago when all of the items were in fact held and acknowledged so when questioned. Ridiculous. I just had one today where the Bank wanted an explanation about an inward dishonour on a customers account when the account was clearly $30k in credit as well !! Simple answer someone gave them a dud cheque. It has nothing to do with the credit - move on. I can't be sure that there isn't a coordinated plan to make Brokers look bad but if the Banks want to use it as an excuse to change the landscape/commissions they're doing a good job about it. I would not be surprised
  • Ray C | 20 Jun 2012, 11:44 AM Agree 0
    Generic well designed form and standard requirements are required. This is what the FBAA should be pushing and not education. The Banks are incapable of designing user friendly forms and systems. Have the Bank's analyse the errors, look at the most frequent and you'll find it's system or form design and not the Broker.
  • David | 20 Jun 2012, 12:18 PM Agree 0
    Brokers should stop making excuses for their poor workmanship. If a broker can't submit a deal with all the necessary supporting documents, then they shouldn't have a licence. Sure, even I occassionally forget to sign an ANZ app (most lenders don't require that) but when you hear from lenders that contracts, pay slips, Tax returns, proof of savings or ID are missing, then those brokers need to be penalised by say a $50 commission deduction on that app. Now, on the flip side, If a bank does not read our submissions, or sends me an email to ask for a document which I have already provided, THEY SHOULD PAY US AN EXTRA $50. I know who would be better off, and that is why no lender does anything but moan.
  • Meeeeezy | 20 Jun 2012, 12:25 PM Agree 0
    When you call broker support to help run you through a scenario and the income assessment servicing calculator and they run you through exactly how the lender requires it to be and it is a deal they will lok at and it services, then an assessor says no because they interpret things differently it is frustrating to say the least.
  • Rod | 20 Jun 2012, 01:56 PM Agree 0
    Most of my problems come after when the loan is approved. There is a large number of times I have to follow the lender up with documents not issueed or issued with incorrect information, documents being lost in transit should be a big concern for the lenders. I beleive that is why customers like the broker relationship, we get the loan approved but the customer is already upset with the lender due to the lead up of events before loan settles.
  • salcee | 20 Jun 2012, 02:43 PM Agree 0
    i agree with Ray c, i think that its about time the lenders all got together and produced a generic form with generic requirements, what evidence may be a bit overkill for some lenders will satisfy others, this would make life so much simpler
  • Another Perth Broker | 20 Jun 2012, 02:55 PM Agree 0
    I fully agree with the Perth Broker, CBA is the worse offender and always finds a mistake. Every time they claim a document is missing where I have the evidence is wasn't missing when send electronically. It's the CBA that always does things to try and reduce the commission even further, and they're also the ones that have two set of for the broker and one for their own mobile lenders. I avoid dealing with them whenever possible for those reasons.
  • Mark | 20 Jun 2012, 03:05 PM Agree 0
    Yet again brokers are perfect and lenders are the problem, judging by some of the comments above. Let's get real. Sometimes a lender asks for more information because the information submitted is deficient or contradictory. Lenders do want to get the deal through first go - why would they ask for something they don't need? On a more positive note there are some worthwhile suggestions here - standard loan application forms (this happens in the US), better use of checklists etc. Finally, how many of those commenting above have actually developed the skills necessary to assess loan applications? Too many mortgage brokers have a pure sales background and do not know how to assess a deal - they "tick boxes" rather than look at information rationally and ask "does this make sense?".
  • Vbliquidity | 20 Jun 2012, 11:37 PM Agree 0
    If Banks want to reduce errors then they need to move to One standardised form with their logo in the top corner. The home loan application is as simple as the ATO tax pack! A home loan is a commodity, its up to each lender to assess the same info on the basis it is correct. The backend of the banks are unsophisticated & the IT departments have bamboozled the business units for so long its time the BU's took back the reins! The technology exists for data matching all forms of financial info. If ASIC want full transparency then we should be able to pull all of a clients banking & tax records into one data file, the TFN is the common denominator & could be secured under chip technology requiring client authorisation via digital Pin! Creative solutions to human error are all around us,brokers can deliver the relationship a client craves while the banks should give up on owning the customer & just take a share of wallet!
  • Harshal | 02 Jul 2012, 11:25 AM Agree 0
    I think this debate is never ending. however if the lenders did all the right things by the customer then we brokers will not have a job. so i try to keep my submission perfect irrespective of the fact that certain banks do regularly stuff things up.
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