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Challenger Mortgage Management has applauded the changes made to the National Consumer Credit Protection Bill which will reduce pressure placed on brokers in the future.
Last week, section 130(3) of the proposed legislation, which gives lenders permission to use the information gathered by brokers or mortgage managers instead of verifying borrower information themselves, was removed from the Bill.
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Challenger had advocated the removal of section 130(3) in its submissions to the Senate Standing Committee in July 2009.
“While brokers and mortgage managers must make reasonable enquiry and verification, the ultimate responsibility must always lie with lenders because of their exposure to any default risk,” Challenger’s general manager of distribution broker platforms and lending Steve Weston said.
“We’re also pleased that brokers and mortgage managers have been given more time to prepare for the new laws by virtue of their deferral to July 2010,” he said.
Last week, the federal government deferred the commencement of the national reforms by six months to 1 July 2010.
