Posts Tagged ‘Brokers’

August issue of industry magazine “Australian Broker” presents industry experts agreeing that “Low-Doc” Lending is now effectively gone or will be gone with the National Consumber Credit Protection (NCCP) laws coming into effect as from 1st January 2011.  This legislation requires brokers and lenders to obtain adequate information and take “reasonable steps” to verify a borrower’s situation at the time of application, requiring additional documentation.  Therefore, a borrower who self certifies his income solely will no longer be accepted.

The irresonsible practices in the US market which preceeded the global financial crises has seen low doc lending in Australia being tarred with the same brush despite our lenders having more stringent processes.  It all comes down to whether Lenders and their repesentatives having done their due diligence as to the loan being “suitable”.

Low doc products remain currently.  However,  1st January 2011 will tell a different story.

I have just received a welcome email from my RTO advising me that my assignments for the Diploma of Financial Services (Finance/Mortgage Broking Managment) were assessed as of  “a high standard, reflecting your professionalism and experience.”  I am looking forward to framing my Diploma once it arrives in the mail. 

As from 1st July 2010, brokers were required to register with ASIC as a prelude to mandatory licensing which comes into effect as from 1st January 2011.  No registration means that a broker is unable to “write” a home loan for a borrower.  With coming regulation under the National Consumer Credit Protection (NCCP) Laws more skill, expertise and experience will be required by brokers to meet the “responsible lending” guidelines. 

To engage in ongoing education is my way of ensuring that I can offer the professional skills required as a mortgage planner servicing the key areas of Newcastle, the Hunter, Lake Macquarie and Central Coast.