Vow Voice 21st February 2020

At Prospa, we are looking forward to adding even greater value to our partner network and helping more brokers uncover opportunities in small business lending.

We continue to bolster our National Sales team that support you and your brokers locally, by appointing a 2nd BDM (Kylie Gilbert) in SA, as well as a 3rd BDM (Goncalo Almeida) in QLD.

Additionally, we have updated our Lead Management Policy. The intent with these policy changes is to better support our partners and provide further clarity to scenarios. Our Partners can access this on the Prospa Partner Portal. As a partner-led business, we continue to give preference to and recognise our partners as demonstrated in the Lead Management Policy.

We have also made some minor changes to our 'Excluded Industries' list. We continue to support small businesses through strong portfolio management.

I would request you to please update your records and resources accordingly.

If you have any questions or would like to discuss, please don't hesitate to contact me directly.

Kind regards,

Alex

Documents:

Prospa-Lead-Policy-February-2020

Prospa-Excluded-Industries-200207

ANZ has announced that it will decrease its interest rate floor for home loan serviceability assessments from 5.5 percent to 5.25 percent.

The changes, which will be effective for all applications from Monday, 17 February, have come in response to the Australian Prudential Regulation Authority's (APRA) decision to scrap its 7 percent interest floor and raise its sensitivity buffer to 2.5 percent.

ANZ was the first major lender to implement the changes in July last year when it reduced its interest rate floor for home loan serviceability assessments from 7.25 percent to 5.5 percent. It also increased its sensitivity buffer from 2.25 percent to 2.5 percent.

In the latest update to brokers, ANZ said its sensitivity margin remains at 2.5 percent.

In explaining the reason behind the change in its floor rate, ANZ said: "To ensure ANZ remains in line with community expectations by applying appropriate tolerances when assessing serviceability, ANZ has reviewed the floor rate used for calculating serviceability."

"As a result, ANZ will reduce the minimum floor rate to 5.25 percent."

The bank said all new and existing applications for residential lending will have the new floor rate applied as part of the home loan assessment process.

The new floor rate will apply to:

• ANZ home loans

• ANZ residential investment loan

• ANZ Simplicity Plus Home Loan

• ANZ Simplicity Residential Investment Loan

• ANZ/OFI Line of Credit (limit)

• Other financial institution (OFI) home or investment loan facilities

ANZ has joined the Commonwealth Bank of Australia, Auswide, Heritage Bank and Westpac in revising its serviceability rates twice in response to APRA's changes to its home lending guidance.

In a new piece of analysis of trends underpinning the Australian housing market, ING Economics' chief economist and head of research, Asia Pacific, Robert Carnell, observed a shift in the housing market conditions since the Reserve Bank of Australia (RBA) began its monetary policy easing strategy in June 2019.

He said that while monetary policy may have lost some of its ability to stimulate the economy, the housing market "remains sensitive" to interest rates and has seen a resurgence due to the RBA's cuts in June, July, and October, and acknowledged concerns the housing recovery may be showing early signs of a new boom.

However, he said that while the current housing recovery is unlikely to dissuade the RBA from its easing strategy, it may persuade APRA to introduce new macro-prudential lending curbs.
According to the latest data from property research group CoreLogic, national home values have now risen by 4 percent in the three months ending December 2019, driven by Sydney and Melbourne, where values increased by 6.2 percent and 6.1 percent, respectively, over the same period.

Source: Mortgage Business

Hi all

Effective immediately, BOQ Broker is making changes to:

• The identification process for domestic customers; and
• Email details for brokers post unconditional approval.

Please read on for full details.

New Identification Process

As part of our ongoing efforts to make it as easy and simple as possible to partner with BOQ Broker, we are pleased to announce our simplified identification process for domestic customers.

Effective immediately, the following identification requirements will apply for Australian and New Zealand citizens:

• Where an applicant's FULL name and either current residential address or date of birth are able to be verified, BOQ will accept one primary photographic, government-issued identification document (one A document). Previously, BOQ has required two A documents in this scenario.
• Where an applicant cannot provide one A document that verifies the applicant's FULL name and either their current residential address or date of birth, they must be identified by one of the following document combinations:

One A document and one B document;

One A document and one C document;

Two B documents; or

One B document and two C documents.

Please refer to the information below for an explanation of the different document categories. Original documents must be sighted. A certified copy is acceptable when certified by an authorised certifier and accompanied by a completed BOQ Certified ID form.

The supporting document checklist will be updated shortly and will be made available to aggregators' software. Apply Online changes will take effect from March 2020. We will also be issuing an updated Broker Identification Guidelines document in due course.

Please note: Identification requirements for customers who are not an Australian or New Zealand citizen remain unchanged.

Document categories:

Every customer's information must be validated to ensure identification details on each document are consistent (i.e. name, date of birth and address are the same on all identification documents provided by the customer).

A Documents (Primary Photographic)

• Photo driver's license issued by an authority of an Australian State or Territory or by an equivalent authority in New Zealand for the purpose of driving a road vehicle (interim documents are not acceptable as an 'A' document but may satisfy the requirements for a 'C' document).

Important: If the customer presents a NSW Drivers Licence with the condition 'Q', this means that the customer is a temporary overseas visitor and does not hold Australian Residency or Citizenship. In this event, please refer to the Foreign Personal Customer ID Requirements as the customer must provide an acceptable passport and valid Australian-issued visa permitting them to work and/or permanently reside in Australia (Visa length must be minimum 12 months with at least 6 months remaining from the date of account opening) and satisfy the remaining ID requirements as per the Foreign Personal Customer ID Requirements prior to on boarding.

• Passport issued by the Commonwealth of Australia or New Zealand Government which includes the photograph of the person to which it was issued.
• Card issued by an Australian State or Territory for the purpose of proving the person's age which contains a photograph of the person in whose name the card is issued (i.e. Adult Proof of Age Card or 18+ card).

B Documents (Primary Non-Photographic)

• Australian or New Zealand Birth Certificate or Birth Extract or extract from the Register of Citizenship by Descent.

Important: A Commemorative Birth Certificate is not acceptable.

• Citizenship certificate issued by the Commonwealth of Australia or New Zealand.
• Pension or health care card issued by the Department of Human Services that entitles the person issued with the card to concessions.

C Documents (Secondary) only Australian Commonwealth, State or Territory documents will be acceptable

• Australian Medicare or interim Medicare Card.
• Debit or credit card issued by an Australian financial institution containing the customer's full name.
• Interim driver's licence along with the expired driver's licence issued by an Australian State or Territory where the customer is renewing their driver's licence and the interim driver's licence contains all of the details that normally appear on a driver's licence.
• Photo identification card issued to a student at an Australian Higher Education Institution (University or TAFE).
• Australian Health Card issued by the Department of Veteran Affairs.
• Bank statement issued by an Australian financial institution within the last 12 months.
• Financial benefits notice issued by the Commonwealth, a State or a Territory within the last 12 months containing the customer's name and residential address.
• Tax assessment notice issued by the Australian Taxation Office within the last 12 months containing the customer's name and residential address.
• Land titles office records or Rates/ utilities notice issued by a local government or utilities provider within the last 3 months containing the customer's name and residential address.
• Birth certificate issued by a foreign government, the United Nations or an agency of the United Nations that, is written in English or be accompanied by an English written translation prepared by an accredited translator.

Aboriginal or Torres Strait Islander Resident

Customer Identification - Special Provisions Form available on request.

New Email Contact for Applications from Unconditional to Settlement

Effective immediately, please use the following email address for any applications from unconditional approval to settlement: brokersettlements@boq.com.au

If you have any questions about these changes, please contact your BDM.

Regards

BOQ Broker Third Party Distribution
e: BOQBroker@boq.com.au
boq.com.au/broker

Please see Westpac's new offers below-

REFINANCE OFFER:

$2K + secret offer per security refinance to Westpac.
Waiver of first year annual package fee
Last day to lodge 29th Feb settled by 31st March
Additional information, refer to Business Update
Competitive Interest Rates (currently best in the market) Load a pricing request today
Additional 0.10% pricing discount LVR <70%

PURCHASE OFFER

$2K cashback
Last day to lodge 31st March settlement by 31st May
Additional information refer Business Update
Competitive Interest Rates (currently best in the market) Load a pricing request today
Additional 0.10% pricing discount LVR <70%

BDM TIP - Check out our BRAND NEW SERVICEABILITY CALCULATOR (hold CTRL Key + select below link)

Serviceability Calculator

Securitisation

Our new product is just about to enter the pilot phase. When this happens, you are likely to notice some changes to Vow Net. Here's a quick peek into what you can expect.

• Within Vow Net, the securitisation product range may appear as an available funder in the accreditations section. These products, however, are not yet available for general use.
• We will be working closely with a small number of branches and brokers to test the product so that is it is robust and ready for the general use
• As such, should you see this product, we request you to not access it unless you have had discussions with Mick Abboud and his team.
• Rest assured once we have completed the testing phase, comprehensive communications and a roll out program will provide you with all necessary information.

Renew Restart - Our Pepper Funded Range

We are transitioning our Renew/Restart range to a full white label solution so that your applications will flow through directly to the Pepper Credit team. This will create a number of efficiencies and you can expect even better turn around times. With this initiative, there are a number of things you will need to do to access this product range. These changes are scheduled to occur on the 24th Feb and are summarised below.

New Forms

'Resi Fact Find' will be replaced by 'Customer Requirements & Objectives' form for all Renew - Restart applications. The document is included in both Standard and Short Form Applications and is also available as a separate (stand-alone) form.

Resi Product Selector Tool

• The current Pepper Product Selector (PPS) will be rebranded as Resi Product Selector
• The Product Selector tool will return a Resi branded Indicative Offer and feature the appropriate Resi home loan solution (including product, rate, and fees)
• A revamped version of the Product Selector will be available to you
• For now, Product Selector will continue to be available via the Resi Broker Portal and can be accessed through pepper.com.au

Resi Resolve Tool

• We are very excited to confirm that Vow brokers will be provided with access to Resi Resolve (previously Pepper Resolve tool). This access is automatic and will happen with no intervention from your end
• What is Resi Resolve?
  • Resolve is an industry-leading broker conversion tool designed to provide you with an alternative loan solution for your customers when their needs cannot be met (or easily met) by their first-choice lender.
• How does Resolve work?
  • When a Resi loan application gets declined, it is automatically processed through Resolve, which will immediately determine eligibility for a Resi loan product. In case a Resi solution is available, a customised indicative offer is shared with you detailing out the potential alternative Resi product, interest rate, fees, and conditions (if any).

New Broker ID

As part of the launch, you will receive NEW logins - a login for Pepper products and a login for RESI products. Click HERE for an example of the RESI dual accreditation message that will be issued.

Contact Details in case of clarifications

For Loan Queries (Loan Structure, Escalations, etc) refer to whitelabel@pepper.com.au
For Loan Scenarios refer to wlsceanrios@pepper.com.au
Phone 1800 737 737

Pipeline Management (New Deals) for Brokers

New applications will continue to be processed - no change.
All applications will be viewed by the submitting broker.

Existing Pipeline Applications

Existing applications (including pricing) will continue to be processed - no change.
The applications will be viewed via RESI Mortgage Management.

Discontinuation of RESI Smart Pro

Following an announcement late last year by Advantedge Financial Services, the Resi Smart Pro will not be available for sale from Monday 16th March 2020. From this date, no new applications will be accepted.

Changes on Vow Net

We will maintain a generic product on Vow Net for the purposes of any post-settlement variations that may be required. Permitted variations include but are not limited to:

1. Increases
2. Consents
3. Product changes - including fixed-rate requests
4. Partial discharges
5. Loan structure and applicant changes
6. Discharges

Customer Service

For existing customers, nothing changes. We will continue to extend our top-class post-settlement services to your clients.

For rate inquiries for existing customers and new accounts created by a further advance, please get in touch with the Resi Service team.