More haste, less delay on mortgage transfers: FBAA

by Julia Corderoy12 Jun 2015
The FBAA is calling on banks to stop sitting on discharge requests and hasten the mortgage transfer process.

This was one of the key issues the FBAA’s chief executive Peter White talked about when he attended an invitation-only roundtable discussion with Federal Minister for Small Business, Bruce Billson.

“Banks are notorious for holding onto a customers’ mortgage as long as possible and we urge them to stop this unfair practice,” White said.

Currently there are no regulations or requirements about the time it takes from the approval process through until settlement.

“This is the crux of the problem. If banks know they have a limited time frame, we wouldn’t have lenders sitting on dischargers for as long as they want.

“Time is money and while banks make more through maximising revenues and fee charges, the customer is the one losing out.

“This delay impacts consumers and especially small businesses who need to take advantage of commercial opportunities.”

The delays are another reason why the negative image of lending institutions remains, says White.

“The government continually tries to make things easier for those needing a loan but in the process is being deliberately stalled by the banks looking to profit at the expense of goodwill.”

The FBAA was the only body from the finance industry to attend the forum, which also had representation from the retail, food and travel sectors.


  • by barney 12/06/2015 9:58:54 AM

    This is a very good comment by the FBAA and shows that they are addressing very real issues. Under the UCCC there WAS a timeframe though when the legislation changed or was "updated" it seems this disappeared? What should take no longer than 2 weeks - ever - can now take double that.
    You also do not want your client chasing the lender direct as their retention team then try and stop the refinance even though they may have been over charging for years!

  • by Harold Spencer 12/06/2015 10:17:31 AM

    This has been going on for 30-40 years why the message now? Great to see it and keep up the pressure but still want to know why now?

  • by Broker 12/06/2015 10:53:50 AM

    And we all know that NAB are so very famous for this extremely unethical business strategy.

    I recently sent NAB a discharge authority on June 2 and NAB told me that June 30 will be the first available refinance settlement day!

    At which stage they commence their deliberate delaying tactics and start harassing the self-employed clients to stay with NAB after previously declining them twice for a loan top – up and consolidation despite the clients banking with NAB for 20 plus years with a clean payment history and no serviceability issues whatsoever, not to mention NAB’s totally unnecessary annual reviews of their financials.

    NAB then tell the client that the new lender I have recommended is not going to be a good fit for them , only after I have secured an unconditional approval within a week that reduces their monthly payments by 40% , accesses some equity to do some renovations , and consolidates home loan, credit card and some business overdraft debt to 4.33%, now all of a sudden NAB say they can do the same despite previously offering no solutions whatsoever , yet now they are literally pleading to keep their business!

    As a Broker I have to advise my client to call NAB and mention the banking ombudsman, to literally shame them into action in order to get a timely settlement date.

    I then spend two lots of 30 plus minutes on hold to navigate my way through NAB’s unprofessional and deliberate attempt to undermine my all my efforts as a Finance Broker to arrange a timely settlement next week sometime which I am still attempting to do.

    How many clients do you think I recommended to NAB these days?

    This situation is simply not good enough.