Frustration over home loan processing

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Mortgage advisers say their turnaround times continue to be much slower than direct home loan applications, leading to frustration across the industry.

Monday, October 5, 2020, 9:35 a.m.

Several advisers said MMT online that direct customers received preferential treatment.

Mortgage Suite’s Krish Krishna said there were “major delays” in home loan approvals.

He said banks were processing direct loans faster: “I’m also aware of a case where someone was approved within three days by going directly to the branch.

“The problem, to some extent, is with the banks themselves. Brokerage centers have also taken over all trading applications in the case of ANZ, ASB and Westpac,” Krishna added.

Andy Phillipson of The Mortgage Shop also said there was a big gap in processing times.

“I know of cases where a client got a home loan approved and the contract confirmed even before we got a response from the brokerage unit. week, customers went straight to their own bank, got full approval within days and the loan was settled within weeks.

Phillipson worries that banks are avoiding non-standard transactions.

“Either there is a concerted effort by banks to reduce broker-led activity, or lending decisions are now so governed by a ‘paint-by-numbers’ system that logical offers from advisers that don’t fit lockers are expelled immediately.

Tags: home loans Mortgages

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