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ISCOVER
Still standing in an industry renowned for shake-outs, MKM Capital continues to provide solutions for the trickiest of residential loans
While the post-NCCP legislative environment has seen many lenders exit the non-conforming market, MKM continues to specialise both in coded and non-coded residential loans that don’t fit mainstream lending criteria.
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Typical scenarios include:
- Residential property and vacant (non-development) land as security
- Payout of bankruptcies, tax debts, liquidations, litigations and divorces
- Refinance of private loans
- Related-party purchases and estate transfers
- Overdue settlements
- End development stock
- Incomplete properties as security (90 per cent complete or less at land value)
- Credit defaults, paid or unpaid
- Mortgage arrears
- Unusual income types
- ABNs under six months
So, what kind of broker refers loans to MKM? “We have a steady stream of referrals from specialist non-conforming brokers,” says director Graham Mendelowitz. “However, most brokers’ need for a non-conforming lender is only occasional. We cater for both types of enquiry.
“There has been a splash of publicity recently speculating the extent to which the NCCP requires a broker to verify information provided by a borrower,” says Mr Mendelowitz.
“This shouldn’t deter brokers from venturing into non-conforming. We know there’s a limit to how much a broker can verify when their priority is to build a relationship with the client. Referring brokers can be confident that our credit team will double check everything.
“Importantly, MKM does not claw back commission for loans refinanced shortly after settlement. We recognise that the goal of a non-conforming borrower is to demonstrate their creditworthiness and refinance to a mainstream lender. There is no reason to penalise the referring broker for doing the right thing by their client.
“We also acknowledge that the broker workload for a complex non-conforming loan is higher, so in addition to paying commission, we allow mandates to be deducted from loan funds.”
And a typical MKM borrower? “Ours is not a one-size- fits-all product,” Mr Mendelowitz says. “Any good borrower in a tricky situation may find their solution lies with MKM Capital.”
To run a scenario direct with the MKM credit team, call 1300 762 151 or email applications at mkmcapital dot com.
Quote this article to receive an extra 0.1 per cent commission for all loans settled in 2013.
Graham Mendelowitz is director at MKM Capital
