Application rework claims ‘contentious’, says broker
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A mortgage broker has suggested that inconsistencies in credit application criteria between lenders and credit assessors could result in rework and delay the process.
According to a recent Broker Pulse survey from Momentum Intelligence, undertaken in partnership with The Adviser, brokers have reported that, on average, around a quarter of their interactions with credit assessors involve the assessor not applying the policy “consistently”.
As such, brokers have been calling for credit assessors to apply lender policies consistently as broker satisfaction with lender assessors has continued to plunge to record lows.
While some lenders have reportedly suggested that rework from broker applications was a “very significant factor” in longer turnaround times, many brokers told The Adviser that the assertion of incomplete applications remained a “contentious” issue.
Mortgage Business
Treasurer urged to clarify reverse mortgage changes By Annie Kane 08 February 2021
A Senate committee has called on the Treasurer to provide further guidance and detail around some of the responsible lending reforms, including the provision of reverse mortgage credit assistance.
In December 2020, the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 was introduced into Parliament, setting out legal amendments relating to consumer credit and consumer leases, the controversial proposal to extend the best interests duty to more credit assistance providers and the removal of responsible lending laws for all but small credit contracts.
The bill was referred to the Senate economics legislation committee for review in December, with the Senate expected to report back to the chamber
Mortgage Business
RBA focused on lending, not house prices: Lowe By Malavika Santhebennur 08 February 2021
Governor Philip Lowe has said that the central bank will continue to focus on lending standards and hold discussions with regulators if they were to deteriorate.
Addressing the House of Representatives standing committee on economics on 5 February, the Reserve Bank of Australia (RBA) governor Philip Lowe has reiterated that the central bank would not focus on housing prices.
“As we have previously discussed at these hearings, the RBA does not – and should not – target housing prices,” Mr Lowe said.
“Instead, our focus is on the lending that is used to purchase housing. We want to see lending standards remain strong.”
New credit reporting bill passes Parliament accountantsdaily.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from accountantsdaily.com.au Daily Mail and Mail on Sunday newspapers.
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Financial hardship information will be exposed on consumers’ credit reports for the first time after the passing of a bill on credit reporting.
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National Consumer Credit Protection Amendment (Mandatory Credit Reporting and Other Measures) Bill 2019 was passed yesterday and would establish a mandatory comprehensive credit reporting regime and provide that a credit provider could not refuse to provide further credit or reduce a customer’s credit limit because financial hardship information existed.
However, Financial Rights Legal Centre chief executive, Karen Cox, was concerned the visibility of their hardship information would deter people from seeking assistance. Information would be retained for 12 months regardless of the time spent in hardship, a particularly important fact when thousands were forced to take hardship deferrals during the recent COVID-19 pandemic which could later affect their credit rating.