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Some of Australia’s largest mortgage management funders will now provide brokers with five days notice to any amendments made to credit policy or product changes.
FirstMac, Challenger, ING Direct, RESIMAC, Adelaide Bank and Origin have all committed to providing the notice period in a bid to improve communication with brokers.
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At the MFAA sponsored Industry Roundtable, held earlier this year, many brokers raised concern over the short notice period being given by some funders when significant policy changes were being made.
MFAA chief executive officer Phil Naylor told Mortgage Business that in a number of cases, brokers were submitting loan applications only to be advised that policy had changed overnight and the loan could not be assessed in its current form.
“The mortgage management sector has always been a great supporter of the broker channel and we recognise the importance of communicating any major changes to brokers in a timely manner and with adequate notice,” Mr Naylor said.
“The five day notice period will make the whole loan process easier for brokers so that, if policy does change, they will be able to give their customer fair warning and explain that approval could take longer than first predicted.”
Mr Naylor commended the mortgage managers for being involved and said the new standard was fair and adequate.
“Obviously the longer notice a broker gets the better, however, lenders are constantly changing their policy so at least five days is better than nothing at all,” he said.
