SunPartnership

Welcome to SunPartnerships

In this edition, we hear from the keynote speaker at Suncorp's recent Synergy Sunrise Series event, Michael McQueen. Michael is a six-time bestselling Author and Futurist, who shares his views on "the age of transparency" and how defining one's purpose and building trust can translate to stronger returns and sustainable growth. Michael provides a blueprint for how organisations can dial-up authenticity and human-ness, and what as an industry we can do to close the perceived "trust gap"...and he presents a very compelling case based on his global insights.

Watch Here

Another popular presentation at Synergy was on customer vulnerability by Suncorp's Customer Advocate, Matt Leslie. Unique to Suncorp, the differing vulnerability profiles provided brokers with information on how they can actively help their customers manage their situation. Suncorp has established dedicated Vulnerability Hubs, teams that case manage and assist customers through these challenging circumstances. Matt is also leading collaboration with other Bank Advocates and industry to identify how to best support brokers and ensure there is consistency in expectations around the role brokers play in light of the Banking Code of Practice changes.

Some weeks ago, Suncorp became a founding signatory to the United Nations' Principles for Responsible Banking, signalling our commitment to drive an inclusive, fair and sustainable banking sector that contributes positively to customers and their communities.

And we have made some exciting announcements at our Executive level - with the appointment of Steve Johnston as Group CEO and the planned departure of David Carter, CEO Banking & Wealth.

The energy within the industry feels like it has turned-up the dial on optimism. And while at Suncorp we have faced some service challenges, our focus is on how we can better use technology to increase automation to deliver a consistent and reliable service to our broker partners and customers.

Thank you for your continued support and commitment to building a resilient and diverse industry - we truly value our partnership.

Renee Blethyn

Suncorp National Partnerships Manager

ANZ Update

As a valued business partner, we would like to take the opportunity to let you know that ANZ has recently launched a new marketing campaign, including a TV commercial to promote cash flow solutions to business owners as the end of the year approaches.

We understand that businesses have their ups and downs, and the timing of cash flow can be hard to manage. Whether ramping up or winding down, we can help broker clients with flexible cash flow solutions, in the lead up to the end of year period.

As you will see within the attached magazine advert we have directed business owners to brokers in the campaign, which may result in increased traffic to your brokers. You are welcome to share the attached example with your broker network. The campaign will run until mid-December on TV, in press and magazines, on outdoor billboards, online and across social media.

You can view the TV commercial here: https://www.youtube.com/watch?v=CJyHYt93p54

More information is available on our website at anz.com/cashflow

If you have any questions, please do not hesitate to contact Tim Carroll.

86 400- The smart, digital way to get a home loan is here

Our home loans are live!

We're very excited to announce our home loans are now live -- just 9 weeks after we launched Australia's first smartbank -- and we wanted you to be the first to know!

Our home loans are a real game-changer for both brokers and customers alike. As well as offering competitive rates, we've removed the major pain points on both sides of the fence. Our partnerships have enabled us to use the smartest technology available and offer the fastest time to a decision, with next to no paperwork.

It's been an incredible journey and we'd like to thank each of you for helping us create a product that's going to shake up the Australian home loan market. We simply couldn't have done it without you.

We can't wait for our accredited brokers to get their first 86 400 loans approved and will have more information to come in next weeks Vow Voice!
Thanks once again,
The 86 400 Team

Updates to Macquarie's Product Offerings

Changes to contract fees

To simplify our product offering, from 4 November 2019, we stopped charging fees on the following contract requests:

  • renovation
  • change the due date of repayments
  • once-off deferrals of a scheduled repayments
  • assigning a contract to another party
  • removal of a guarantor.

This applies to all new requests for both existing and new commercial and consumer contracts.

Please note, there will be no impact to fees previously charged on a customer's account.

Reminders

Macquarie have also included a reminder of the liabilities that need to be disclosed on a loan application, their anti-money laundering requirements and your responsibilities around the collection and retention of privacy consent documents.

Disclosure of liabilities

Having all the correct client information helps us to make efficient and accurate credit decisions for you and your clients.

During the asset finance loan application process, if you become aware that the applicant is taking out any other finance related to the purchase of the asset, those relevant liabilities must be disclosed on the finance application to Macquarie along with all other liabilities.

For example, if the applicant uses "buy now pay later" or other finance to fund the purchase of any vehicle accessories, insurances or warranties that are relevant to the asset being financed, then these liabilities must be disclosed on the application.

If this happens after the application is submitted or approved, but before settlement of the application, then you'll need to update the application to include the relevant liabilities and resubmit it.

Anti-money laundering (AML) requirements

As part of our AML obligations for company borrowers, we need to collect and verify beneficial owner details. A beneficial owner is an individual who ultimately owns or controls an entity such as a company.


The term Owns means owning 25% or more of the entity. This can be directly, such as through shareholdings, or indirectly, such as through another company's ownership.

The term Controls means having the power to make decisions about the entity's finances and operations. This can be through trusts, agreements, arrangements, understandings, policies or practices. Please note, a customer may have more than one beneficial owner.

Application requirements

During the application process, we require the full name and residential address of each beneficial owner to be collected when applying for finance for a company, partnership, trust or offshore government body.

If we identify that any beneficial ownership details are missing on the application, we'll need to call you to confirm the correct details which may delay the application process.

To assist you, we've included a downloadable guideline to walk you through entering beneficial owner details into our system.

(Get the guidelines)

Privacy consent collection and retention


Did you know you are required to collect a privacy consent for every customer who submits an application?

You should keep a copy of all privacy consents in case they're needed in the future.

CBA slashes mortgage serviceability rate

The big four bank has lowered its interest rate floor for home loan serviceability assessments for the second time in less than four months.

The Commonwealth Bank of Australia (CBA) has announced that it will be lowering its interest rate floor for mortgage serviceability assessments from 5.75 per cent to 5.40 per cent, effective from Saturday, 9 November.

The major bank added that applications submitted prior to Saturday,9 November, that have not yet been formally approved will be assessed using the new floor rate.

The 2.5 per cent interest rate buffer will remain unchanged.

A CBA spokesperson told Mortgage Business that in making the decision, CBA sought to balance its regulatory obligations with the interest of its customers and the broader economy.

"In delivering this change, we have ensured we continue to meet our regulatory commitments while remaining focused on delivering great customer outcomes and supporting the Australian economy," the spokesperson said.

CBA joins Auswide Bank, Heritage Bank and Westpac in revising its interest rate floor twice in response to the Australian Prudential Regulation Authority's (APRA) changes to its home lending guidance

In early July, the prudential regulator scrapped its requirement for a 7 per cent interest rate floor and raised its recommended buffer rate from a minimum of 2 per cent to 2.5 per cent.

APRA chair Wayne Byres said the regulator's amendments were "appropriately calibrated", stating that a serviceability floor of more than 7 per cent was "higher than necessary for ADIs to maintain sound lending standards".

Analysts have partly attributed the rebound in home lending activity over the past few months to APRA's changes. However, some stakeholders, including CBA CEO Matt Comyn, have downplayed the stimulatory impact of the floor rate cuts.

Mr Comyn previously stated that the changes would have a "minimal effect" on credit growth, claiming that "almost 90 per cent of borrowers don't borrow at the maximum".

However, CEO of the Australian Finance Group (AFG) David Bailey recently told Mortgage Business that the floor rate cuts had removed barriers to credit for borrowers that were lured into the market following the RBA's interest rate cuts.

Mr Bailey said the floor rate cuts enabled the broking group's network of loan writers to facilitate access to credit for borrowers that had previously been turned away by serviceability restrictions.

"Our brokers are reporting that when there was a change in interest rates, it drove a higher level of enquiry, but there were some customers who still didn't service under the old benchmark," he said.

"I think it's had a role to play because those customers who initially enquired have now been activated."

This was reflected in AFG's financial results for the first quarter of FY2020 (1Q20), in which the group's broker network lodged $15.7 billion in home loans, up 11 per cent on the same quarter in 2018.

Source: MortgageBusiness