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Steven Cross
A new program is “training” consumers to be more responsible when borrowing money, with the program’s developers suggesting it will subsequently become industry standard.
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CreditED, an online learning program incorporating a crash course, 45-minute video and quiz, is designed to ensure potential borrowers understand the implications and obligations of taking out a mortgage.
The program’s executive chairman Kym Dalton told The Adviser that most borrowers do not read the requirements of loan documents and simply sign the documents.
“The program covers the industry standard 34 essential knowledge requirements that each applicant must know before taking out a mortgage loan with any lender,” Mr Dalton said.
“Currently, these are disclosed to applicants in a hard copy ‘review and sign’ format, which does not prove the applicants’ genuine understanding or comprehension.”
After completing the test, borrowers are given a certificate to prove they understand the terms of a mortgage.
“The entire program should take around one hour to complete if the episodes are viewed in full,” Mr Dalton said. “However, participants have the option to attempt the quizzes without watching the episodes and stop and re-start the process as necessary.”
Mr Dalton believes it is ‘”destined” to become a fundamental part of the mortgage credit process.
“Like verifying income or checking credit history, confirming comprehension will become an essential part of responsible lending practice,” Mr Dalton said.
A demo of the program is available at www.creditedonline.com.
