Vow Voice 22nd February 2018

Yesterday in Brisbane we shared the new Vownet CRM to our QLD broker partners. The response was enthusiastic, with everybody impressed at the ease and automation the platform delivers. Some of the feedback so far:

"The workshop yesterday was very informative, constructive, well run. I am waiting for the new system rather than updating my current compliance docs. I just can't wait."

"It was a great launch and I'm really looking forward to getting started on the platform."

"Can't wait to use it to manage my leads and appointments!!"

We'll be rolling it out to other states in coming months, so stay tuned for more details.

There's a lot happening on the regulatory front this year. From the Roayl Commission through to ASIC actions, we want to make sure you know what's going on, and what it means for you.

The 'Coffee & Compliance' breakfasts are an informal way to connect with the Vow team and get up to speed on the issues affecting your business.

Some states have already held events, and the remainder will be held in March. Your State Manager will be in touch to provide more details.

What's in store for the broking profession in 2018? Our own General Manager, Clive Kirkpatrick, recently shared his thoughts in the FBAA magazine.

Check p. 16 out in the latest issue here https://www.fbaa.com.au/broker-magazine/

You may already be aware of Group Lending's Flexi Options specials with rates of 3.89% for investor P&I up to 80% and 3.74% for owner-occupiers P&I up to 80%. However, with 4 funders, there are plenty of niches that will help your customers. Below are just a few:

• For investment purchases, we can offer Interest Only lending up to 95% LVR through two different wholesale funders, with rates starting just over 5%, this may well fit the bill for some of your investment borrowers.
• Trouble with servicing? The Renew/Restart range has one of the most competitive calculators in the market. We can use up to 100% of Overtime, Bonuses and Commissions, in addition OFI debt are input at actual payments on our servicing calculator.
• Construction combined with bridging finance? Or has your client got some credit issues and looking to build? No problems, we have 3 funders that offer construction funding, so chances are if we cannot help, no one can.
• Need a significant cash out component and not sure where to turn now?

Group Lending has experienced credit assessors and do not rely on credit scoring. We can allow you to discount your client's rate by varying your trail and the entire team is focused on client outcomes both pre- and post-settlement. For your next scenario, why not reach out to the team below?

We want to update you with some changes to the VOW Home Loans interest rates, the serviceability calculator as well as some form changes, which will be effective from 19 February 2018.

Changes to VOW Home Loans rates

• Reduced variable rates for investment loans with principal and interest and interest only repayments.
• Introduction of additional fixed rate tiers for owner occupied & investment principal & interest loans.
• Adjusted some of our fixed rates due to market conditions.

Discharge Requests

In the interests of keeping everyone updated on customer movements, we are sharing the communication that will be sent to all Vow brokers when a discharge request is received by Macquarie for one of your clients.

Naturally when a discharge request is received, often it is difficult to save the customer, but the Macquarie retention team will be doing their best to retain your customer.

This highlights just one of the advantages of providing a solution under your own brand. Not only are cross sale opportunities preserved for you, communication of client movements also helps you to retain your clients or at the very least give you the opportunity to re-connect to ensure you are the go to for future financing opportunities.

An example of the e-mail you may receive from Macquarie below:

Subject: Your client has submitted a discharge form

Good Morning Vow Broker,

Jenny Citizen has submitted a discharge request related to their Vow Home Loan.

We value our relationship with you and we want to keep you informed of potential changes within your portfolio.

We're here to help.

We appreciate the changing needs of our home loan customers.

Vow offers a dynamic and flexible product range that provides support across the entire home loan lifecycle. It is important that all of our customers are aware of this.

Our Customer Solutions team will reach out to Jenny shortly. A simple conversation can identify customer needs and reduce the likelihood of a Home Loan discharge.

To discuss this with one of our home loan specialists, please call us on 1800 453 428.

Whilst your customers discharge request is being processed - what do you need to do?

Now we have the completed discharge authority form, we'll let our solicitors know. You, the customer or the acting Settlement Agent will then be able to confirm the discharge date with our solicitors.

If this is a partial discharge, we'll need to arrange a valuation on the remaining property(s) before letting our solicitors know. Once the valuation is complete, we'll calculate the payout figure and advise of any loan adjustments for the properties that are not being discharged.

Important information

Four days before settlement, the loan, including redraw and/or offset accounts, will be suspended so we can calculate the right payout figure. This means the customer won't be able to use the funds in their account during this time and existing direct debits will not be processed. This also applies for a partial discharge.

Please note, this process takes approximately 21 days

Kind regards,

Client Contact Centre

Updated serviceability calculator

In line with the quarterly release of the new Household Expenditure Measure (HEM), we've updated the serviceability calculator. The new measures are effective from 19 February 2018. Any applications submitted before this date and formally approved prior to 5 March 2018 will be assessed in accordance with the existing policy.

Updated Forms

There new E-lodge Support and AML/VOI forms, which have been updated in Vow's system.

If so, CAFBA is the industry association for you. CAFBA stands for the Commercial & Asset Finance Brokers Association of Australia, and as such we are the industry body representing commercial finance brokers.

In 2017 CAFBA commissioned East & Partners, Asia Pacific's leading specialist business banking and market research firm to provide a Broker Channel Analysis in the Australian Asset and Equipment Finance markets. The analysis found that broker sourced proportion of total equipment finance has hit a new record high of 67.3% in 2017.

This confirms the important role commercial finance brokers play in the Australian economy, and CAFBA represents your interests. Our focus is on the issues that affect you, and that is why much of our lobbying centres on keeping our industry self-regulating. CAFBA has been very vocal to not extend NCCP to small business lending, as they are different circumstances requiring different skills, and to distinguish consumer lending to commercial lending.

We have made submissions to Government to reduce the onerous requirements of AML legislation, and are speaking with the ATO and banks about lenders perception of tax debt when approving loans for small business.

Our strategy going forward is to:

1. Professionalise commercial finance broking
2. Develop CAFBA's education program
3. Expand CAFBA to represent all commercial finance brokers
4. Attract more diverse entrants into the profession

CAFBA will be soon launching our Certificate IV in Financial Services: Commercial and Asset Finance, which will be a dedicated curriculum to train new commercial brokers.

If this sounds like the industry association that best meets your needs, please contact Tracey Embleton on 0417 871 912 or membership@cafba.com.au