Non-conforming loans made easy with Pepper tool

by Otiena Ellwand26 Oct 2017

A thousand brokers have used the Pepper Product Selector online conversion tool since it launched in June, giving them the ability to provide customers with an indicative offer in under two minutes.

“To see this tool go from a sketch on paper to a live online customer conversion tool and then to achieve this kind of market penetration – it’s been a terrific success," said Pepper’s director of sales and distribution Aaron Milburn. The tool is a "market first" for an Australian non-conforming lender.

Brokers answer a handful of questions, input client information and the tool returns a product match, indicative interest rate and associated fees. The tool also completes a broker enquiry with a credit bureau at zero cost. According to Pepper, the tool has fast become a broker favourite because it is easy to use and simplifies the non-conforming lending process.

“What’s more exciting is that the Pepper Product Selector is attracting a significant influx of brokers who are new to writing non-conforming business. It’s made non-conforming lending so much more accessible – blowing the lid off those misconceptions that writing a non-conforming loan is too hard," Milburn said.

An access seeker score combined with proprietary information collated over Pepper’s 16 years in home lending allows the Pepper Product Selector to indicate whether that customer might be prime, near prime or specialist. After receiving an indicative offer, the next step for a broker is to complete a serviceability check and then submit an application which is assessed by Pepper’s underwriting experts.

“The broker is then in a fabulous position to talk to the customer with the confidence of a genuine solution at their fingertips,” Milburn said.

Matt Porfida, director of Vault Lending Solutions, said the tool has made quoting the client easier, faster and more efficient.

“After using the Product Selector for the first time, all I can say is ‘Wow’," he said. "To be able to approach clients with an indicative offer from the lender is amazing and it’s great to know I have such a powerful tool available at my fingertips.”

Robyn Koski, from Evolve Money, said she recently used it to help a self-employed client who had a great income but had some circumstances "outside the box".

"To be honest, I didn’t think I’d be able to help him until my BDM suggested running the scenario through the Pepper Product Selector. It pinpointed a suitable product in a matter of minutes and my client was delighted that he had an option to move forward with."

“In most cases, a client will expect to be offered a home loan with a well-known lender who offers a low rate. The challenge is getting the client to accept the reality of their situation, which is that they do not meet the criteria to qualify for a mainstream home loan and being able to reassure them that there are alternative lenders who specialise in providing solutions for their specific circumstances."

To help with this, Pepper has released a 'five step process' to guide brokers on how to successfully present a non-conforming home loan solution to a client not expecting this outcome.