Resi Product Spotlight

With Credit parameters continuing to be tightened across the industry, more and more brokers are turning to Specialist funding sources to provide solutions for their customers.

Resi Product Spotlight - Renew/Restart range.

With Credit parameters continuing to be tightened across the industry, more and more brokers are turning to Specialist funding sources to provide solutions for their customers. The Resi Renew & Restart range of loans not only provides more flexible prime solutions for those that don't quite fit the mould of the mainstream lenders, but we also provide the most competitive Near Prime and Specialist Lending solutions in market.

Near Prime: No risk fees up to 85% on most products

  • Unique pricing proposition which minimises entry costs (no risk fees for many customers) making our solution the cheapest in market for those that need a funding solution as a steppingstone back to prime lending.
  • Full Doc, Alt Doc (Declaration of financial position plus one of: Accountant Letter; 6 months Bank Statements or 6 months BAS) Construction (both Full Doc and Alt Doc) solutions are available.
  • Unlimited defaults, judgements and writs up to $1,000 accepted (paid or unpaid)
  • Unlimited defaults, judgements and writs > $1,000, registered > 24 months (paid or unpaid) accepted
  • Discharged from bankruptcy (1 day accepted)
  • Debt consolidation for an unlimited number of debts including payout of ATO debts

Our loan product is the best in market for someone that needs a solution today and intends to refinance into prime within 2 - 4-year time.

Specialist: No risk fees up to 85% on most products

  • Unique pricing proposition which minimises entry costs (no risk fees for many customers) making our solution the cheapest in market for those that need a funding solution as a steppingstone back to prime lending.
  • Full Doc, Alt Doc (Declaration of financial position plus one of: Accountant Letter; 6 months Bank Statements or 6 months BAS)
  • Unlimited defaults, judgements and writs up to $1,000 accepted (paid or unpaid)
  • Unlimited defaults, judgements or writs from 1 credit event < 12 months (paid or unpaid)
  • Discharged from bankruptcy (1 day accepted)
  • Cash out up to 80% LVR for acceptable purposes including renovations and business use
  • Debt consolidation for an unlimited number of debts including payout of ATO debt

Submission

  • Submission is via Apply on-line via Resi - Renew / Restart range, but credit assessment is carried out directly by our funder fast-tracking the process for you.

Finally, gone are the days where borrowers seeking a specialist lending solution have to put up with basic loan functionality. Our solutions offer 100% offset facilities and a great on-line banking platform. At Resi with our Renew/Restart range, we act as caretakers for your clients until you can place them in a Prime Loan offering! Interested to find out how to secure long terms clients via specialist lending, get in touch with the team, they will step you through the process.

Commercial Lending in Today's Markets

It is critical brokers use our approved Commercial lending panel, when writing off-panel you must seek approval from your State Manager or myself.

Unfortunately, I am aware of many instances, where purported lenders have appeared from nowhere setting up bogus websites to appear, they are funding Construction/Development or Commercial loans.

Issue letters of offers requesting upfront application fees, with no intention of ever funding these loans. No regulatory body is controlling these bad practises, I'm working with both FBAA/MFAA to highlight these bad practises that could impact our industry and brokers reputations.

I cannot stress enough the risks when writing off-panel, that's why us an aggregator review and fully vet any new lender before placing them on our approved lending panel

Glenn Mitchell
Head of Commercial & Equipment Finance

Pepper Promotional Offer

Pepper has extended their fee campaign for full doc loans to the end of November.

The Establishment Fee, normally 0.75% has been cut for Full Doc Loans. The fee reduction applies to Prime Full Doc and Near Prime Full Doc products.

(Download - Interest Rate and Fees)

Full Doc Prime

Loans up to $1m

o Establishment Fee Special - $1,000

Loans $1,00,001 - $3,00,000

o Establishment Fee Special - 0.20%

Full Doc Near Prime

Loans up to $1m

o Application Fee Special - $2,500

Loans $1,00,001 - $3,00,000

o Application Fee Special - 0.40%

AUSWIDE BANK

Temporary Suspension of Preapproval Applications

What is changing?

Effective from Wednesday 6th November, 2019 Preapproval Loan applications will no longer be accepted until further notice, except for the following circumstances:

  • Construction portion of a land purchase and build loan
  • Refinance with associated preapproval for new purchase
  • Existing Auswide Customers

Auswide Bank is extremely committed to helping everyday Australians achieve home ownership. We do understand the importance and value for a customer to be able to enter into the property market with the confidence our fully assessed preapproved loans provide.

However, we are also conscious of our obligation to our brokers that place their confidence in us to deliver the right customer experience to their clients who have committed to purchases and/or need to refinance their current facilities to achieve their financial objectives.

Why has this decision been made?

A recent change to our Consumer Credit Policy extended the validity of our fully assessed preapproval applications from 30 days to 90 days. This has resulted in the volume of these applications more than doubling, with no sign of slowing particularly in the higher LVR space.

Providing a fully assessed preapproval that includes Mortgage Insurer's assessment has been a niche offering for Auswide Bank, however it requires the same amount of processing time as an application seeking full approval.

In line with the rest of industry our conversion rate on fully assessed preapproval applications is less than 15%.

The increased volume of preapproval applications has now impacted on our ability to maintain our SLA's for our purchase and refinance applications and we have made the hard decision to temporarily suspend Preapproval applications, with some exceptions. This will allow us to return our SLAs to normal in the shortest possible time.

We expect to be able to restore the acceptance of preapproval applications in the near future as we understand the importance of them for our potential customers.

The Bank will continue to keep you updated as we restore our SLA's and will advise when we can begin accepting preapprovals again.

What does this mean for loans in progress?

  • Preapproval applications that are in the system that are not related to a land purchase/construction application or a refinance/purchase application have been placed into a lower priority queue and will continue to be worked. If the applicant enters into a Contract to purchase please advise our LOS team immediately, so that the file can be reallocated as a Purchase.
  • Preapproval applications that are in the system where the preapproved loan relates to a land purchase and construction application or a refinance/purchase application will remain in the normal workflow queue.

If you require any further information, please visit www.auswidebrokers.com.au

Vownet update: New Release

Recently we worked on Maximum Borrowing relocation. We have now made further improvements to this feature, which was launched Monday evening.


Maximum Borrowing tab has been reinstated within Broker Tools with a new 'Product used to calculate' field. Please note that values calculated within this tab are approximate and are based on a single product per lender (displayed).

For more accurate calculations please use information in Client Profile/Broker Tools to determine maximum borrowing capacity (Search loan products, Review loan products, Compare loan products).

You can now view and save PDFs for Maximum Borrowing within both Broker tools and Quick tools too.

We have also enabled the option to edit interest rate of product and interest rate discount under Review loan products tab.

AFCA reveals broker share of customer complaints

AFCA's new online comparison tool has revealed that brokers make up only a small pool of total complaints filed over finance lending grievances, as the banks bear the brunt of customer dissatisfaction.

The Australian Financial Complaint Authority (AFCA) has released a new tool that allows consumers to view the number and type of complaints made against any particular financial institution, service or representative.

The tool, named Datacube, was designed for consumers to see if their broker, insurer, bank, financial adviser, superannuation fund or other financial firm has received and responded to consumer complaints.

Users can search by financial firm (i.e. institution name), primary business or service (i.e. mortgage broker, financial adviser), business size, or product group provided (i.e. housing finance, business finance).

The Datacube contains AFCA's complaint data filed between 1 November 2018 and 30 June 2019, and will reportedly be updated every six months.

In total, AFCA received 44,988 complaints from consumers, which were initially passed on directly to the financial institution concerned.

A large number were resolved without further interference from the complaints body.

Of those that remained unresolved, 24,665 we accepted and progressed by AFCA for further actions.

Overall the banking and finance sector accounted for 57.3 per cent of all grievances accepted and progressed by AFCA, with 14,129 complaints.

Of the total complaints actioned against the sector, 20.5 per cent were made in regard to consumer loans (including personal loans and lines of credit), while 20.3 per cent concerned housing finance, and 14.7 per cent related to business finance.

Credit cards received the most complaints, making up 24.5 per cent of the accelerated complaints for the sector.

In the reporting period, there were 2,933 complaints accelerated by AFCA regarding housing finance, 2,091 complaints about business finance and 2,965 complaints for consumer loans (largely comprising of personal loans).

Complaints about lending products therefore made up 54.8 per cent of the total accelerated complaints filed against the banking and finance sector.

Broker complaints a drop in the ocean

Looking at complaints by channel, brokers made up a very small proportion of consumer complaints, even in light of an increase in overall complaints made to AFCA.

With 53 complaints in the eight-month reporting window, mortgage brokers made up just 0.1 per cent of total AFCA complaints filed in the data period, and 0.23 per cent of the banking and finance complaints that were accepted and progressed.

Of the 33 complaints that progressed through to the second stage of AFCA's resolution process, 71.4 per cent were in relation to securing housing finance, and 14.3 per cent related to business loans.

Other complaints involved personal loans (8.6 per cent), credit cards (2.9 per cent) and bank accounts (2.9 per cent).

Of the 7,740 complaints regarding lending products accelerated by AFCA, mortgage brokers were the channel used in just 33, or 0.4 per cent of cases.

Additionally, when combining data with finance brokers, who also provided lending advice, complaints totalled 91 in the eight-month reporting period, just 0.37 per cent of all banking complaints that were progressed by AFCA.

Of these 91 complaints, 77 were directly related to lending products, showing that mortgage and finance brokers were related to 1.0 per cent of total grievances over lending products.

Banks face brunt of consumer dissatisfaction

In comparison, banks (excluding mutuals, credit unions and non-bank lenders) received 16,214 initial complaints, making up 36.0 per cent of total complaints to the body during the reporting period.

Of these, 7,939 were accelerated and actioned by AFCA, meaning banks made up 56.2 per cent of all banking and finance complaints.

For the progressed complaints against the banks, 29.1 per cent related to housing finance, 10.9 per cent were about consumer loans, and 8.5 per cent involved business finance.

The biggest factors that caused consumers to complain about banks included bank accounts (26.7 per cent) and credit cards (24.6 per cent).

Grievances around lending made up 50.0 per cent of all complaints filed against banks, and banks accounted for 51.3 per cent of all lending complaints.

When including banks, mutual banks and credit unions, these lenders account for 84.9 per cent of all complaints filed in the banking and finance sector.

Further, these combined lenders make up 48.6 per cent of all complaints accelerated by AFCA.

Author: Hannah Dowling

Source: The Adviser