We've collated a few of the lender updates that we've recieved over the last week. Make sure you are aware of the these lender updates.
AMP Bank Commission Arrangements Implemented
At AMP Bank we're constantly looking for ways to improve outcomes for our customers and business partners. In line with our focus on continuous improvement, we have reviewed our approach to commission arrangements implemented in January 2019 as part of the Sedgwick recommendations.
What is changing
Effective immediately, we will cease clawbacks for decreases in loan utilisation. We will retrospectively apply this new methodology from 1 January 2019.
At the same time, we will continue to apply the following:
- At 180 days after settlement, a review will allow for payment of additional commission should overall loan utilisation increase
- Apply clawback for full and partial loan discharges as per current timeframes
What this means for you
In the interim and as we go through the process of updating our system to reflect our revised position, utilisation commission payments and clawbacks will continue to appear on your monthly statements. However, we will make a manual adjustment to reverse the transactions if they have occurred due to an overall net utilisation decrease.
For more information on the process please review the FAQs or reach out to your Business Development Manager with any questions.
We thank you for your continued support.
Director, AMP Bank Distribution
ANZ Application Assessment Times Update
CBA Serviceability Rate Updates
Calculating the Assessment Rate
- System, Servicing Calculator and CommBroker have all been updated with the new Serviceability Rates.
- The Servicing Calculator will automatically calculate the assessment rate on Continuing Commitments once you input the current interest rate.
- For example on a Standard Variable Rate in the Proposed Loan Details, you must enter the assessment rate as the higher of the following:
- 5.75% p.a.
- Loan Rate + 2.50% p.a. less any discounts given
- 5 Year fixed rate less any discounts given
Interest Rate Buffer
- For a full table of assessment rates per product e.g. Extra, VLOC and Fixed visit CommBroker
Dept to Income Prompt
- The Serviceability Calculator has now been updated to display the following prompt when the DTI is higher than 6 "The debt to income ratio is high. Ensure all income sources and account variations are captured accurately"
- An application can still be submitted with a high DTI.
- To support an application, provide detailed comments on the stability of the customer's overall income position. Credit will consider your comments during their assessment. For example
- High income stability (such as income predominantly comprising of base income, net profit or consistent sources).
- High stability of employment (with details of years in current employment, same industry or current business).
For more information visit CommBroker
2019/20 Tax Rates, Medicare & HEM
We recently updated our systems to reflect the new 2019/20 Tax Rates, Medicare Levy & Living Expenses Thresholds - you can download the new calculator from CommBroker.
Adhering to these thresholds is an important regulatory requirement that ensure our customers can continue to service their loan and maintain their financial security.
We understand that some impacts of these changes may be frustrating, particularly considering conversations previously held around borrowing capacity.
These benchmarks are set through a variety of factors, including inflation, wage growth, and the overall cost of living, all designed to enable us to adequately protect our customers against future economic changes that may impact their financial position.
As always, we will review your feedback and explore options to continue providing support in future.
NAB Broker Website Refresh
As the bank behind the broker we're always looking at ways to make it easier for you to do business with us.
We have refreshed NABbroker.com.au today to bring you a new look and feel website which is more intuitive and secure. This is the first of many planned updates to the site.
How will Brokers be notified of these changes?
Brokers should have already received communications in July about the new refreshed site. NAB will be re-communicating to brokers also this week that will include the Quick Reference Guide in the BDM Update.
Which browsers does the portal work best with?
The website will work best if viewed on the following browsers:
- For desktop: Google Chrome (latest version and version minus last), Internet explorer® V11, Safari 10.0+, FirefoxTM(latest version and version minus last) or Microsoft Edge 15.
- For mobile: Safari 9.0+, Chrome mobile browser (latest version and version minus last) or Samsung default browser 4.0
- Check out the Quick Guide NAB have put together to help you see what's changed and find the sections you need.
- If you still have queries about portal access, please contact the Broker Response Centre Team at firstname.lastname@example.org or 1300 622 276 for more information.
In addition to the new website - there is lots happening at NAB which they have communicated over the last couple of weeks.
Last week NAB launched their Spring Home Loan Campaign - 'The Story of Progress'. Supported by their new affordability and buffer floor rates, as well as their current pricing offers, you'll see the campaign promoted across a number of channels including TV, radio and social media.
The campaign will showcase the following ways they offer support and flexibility to brokers and their customers:
- Flexi repayments - the ability to modify repayments, switch loan type, take a repayment breather
- Cash back offers - new lending and refinance customers get $2,000 cash back when they take out a home loan with NAB - for all NAB offers refer to http://partner.nabbroker.com.au/offers/
- NAB Check-in - our email program which checks in with customers and provides insights to ensure they're making the most of their NAB product/s
- Tools & calculators - property reports, borrowing/repayment calculators, loan selector tools
- The NAB App - a quick view of equity, redraw access, My Goals section to save towards a property
Any questions / issues relating to the information contained here please direct to Kristy Clucas on Kristy.Clucas@nab.com.auor Nicole Triandos on email@example.com
St George Home Loan Process Update
Today, we're announcing some changes to the home loan process when submitting a home loan through business channels.
What do you need to be aware of?
- From 17th August 2019, Consumer Only will be making home lending changes to ensure we continue to meet the needs of our customers, communities and regulators responsibly. As part of these changes, Consumer will be introducing new application forms with updated expense categories. New rules will also be in place for calculating the Debt to Income Ratio.
- As a result, there is a change to your current process for home loans submitted via Business Bank channels.
What do I need to do?
From Monday 19th August 2019 you must:
- Stop using ApplyOnline to submit deals via SBG Business Banking
- Download and complete a separate home loan application form titled Home Loan Application Form - SME and Commercial (Form ID: STG32015 0419, BSA30500 0419, BOM32015 0419).
- Document the Requirements and Objectives (R&O) conversation via the Responsible Lending - Requirements and Objectives Form
- Access the SBG Broking portal for the forms
- Include your Aggregator name, your name and Agent ID on the application form - if you do not enter all the required information, you may not receive your commission correctly
- If you submit the wrong application form, you will be asked to re-submit using the Home Loan Application Form - SME and Commercial (Form ID: STG32015 0719, BSA30500 0719, BOM32015 0719)
- Whilst your Business Banker will liaise with the customer to complete the serviceability assessment, you will still need to meet your own preliminary assessment as part of your Responsible Lending obligations before paperwork is submitted
When is this happening?
From Monday 19th August 2019, you must download and use Home Loan Application Form - SME and Commercial and Responsible Lending - Requirements & Objectives Form when submitting a home loan via business channels. You can no longer submit via ApplyOnline from Monday 19th August 2019.
Please contact your local Commercial BDM if you have any questions
St.George Banking Group