With newly sworn-in Prime Minister Tony Abbott announcing that Australia is “open for business” under the new Coalition government, Mortgage Professional Australia Magazine asks in a recent article what this win will mean for the country’s business owners.
According to the article: “Red tape has been a bane of small business owners and mortgage brokers in recent times, with industry bodies such as the MFAA and COSBOA lobbying aggressively to cut the hoops business owners are increasingly being asked to jump through – and it seems they may have gotten their wish.”
Currently ASIC sets out its expectations for responsible lending conduct compliance in Regulatory Guide (RG) 209. There are three steps to be taken:
- make reasonable inquiries about the consumer’s financial situation, and their requirements and objectives;
- take reasonable steps to verify the consumer’s financial situation; and
- make a preliminary assessment (if you are providing credit assistance) or final assessment (if you are the credit provider) about whether the credit contract is ‘not unsuitable’ for the consumer (based on the inquiries and information obtained in the first two steps).
In addition, if the consumer requests it, you must be able to provide them with a written copy of the preliminary assessment or final assessment (as relevant).
Regardless of any compliance changes introduced by the new Federal Government, you have that competitive advantage to streamline you business using reports in your RP Data subscription.
- Generate an rp.autoval report (AVM) to assist in the process of making reasonable enquiries about the consumer’s financial situation. This will provide a property value range of the customer’s asset. Take note of the Forecast Standard Deviation (FSD%) range as this will give you a picture of the accuracy of the estimate.
- Generate detailed property reports to give you some preliminary figures on current market value in comparison to the estimated value of their property. Reports are available on your rp.professional homepage and include:
- Comparable Market Analysis (CMA), which displays comparable properties that have sold nearby, properties that are currently on the market within the area, market comparisons and current rental appraisals.
- Rental Comparative Market Analysis (Rental CMA), provides an estimate of the weekly rental based on the past 6 months of rental history from RP Data’s On The Market database. This helps give an indication of rental return if the owner is considering the property as an investment.
- Suburb Statistics Report, which provides in depth property data and values of the suburb. You can identify growth trends, sales and listings data over time and much more.
Log in to rp.professional and start generating your property reports. For more information on how RP Data can help you maintain your competitive advantage as a Finance Broker, call us on 1300 734 318 or visit rpdata.com/training to book a free training session with a finance broker specialist.
Learn how to generate custom reports from your rp.professional homepage