In a recent interview on Australian Broker TV, ASIC Commissioner, Peter Kell, spoke about complying with the new NCCP Legislation and his areas of focus for enforcement in the mortgage broking space.
Mr Kell, acknowledged that there was generally a good understanding of the new legislation but advised that there were some areas which needed improvement.
In particular he said brokers needed to understand that they have a responsibility when it comes to establishing a customer’s ability to repay or deal with the credit being offered. A broker can’t just rely on information provided by the lender, they need to be diligent themselves. This cannot be outsourced
RP Data can assist with this area even before a loan is written. When a customer approaches you looking for finance to purchase a property, you can look up on RP Data what properties are likely to cost in that area and compare that to your customer’s income, deposit amount and outgoings, to get a sense of a realistic loan amount and repayment ability. Generating an Automated Valuation report (AVM) will also give you a deeper understanding of a property’s estimated worth by using comparable attributes and recent sales in the area.
One of ASIC’s areas of focus for enforcement in the mortgage broking space is fraudulent material being provided on loan application documents. ASIC continue to crack down in this area and already some brokers have been banned from the industry and criminal proceedings have been instigated.
RP Data can also assist in this area, as some of the details provided on application forms, such as property ownership, can be verified on RP Data prior to submitting the application form. This extra check only takes a moment and will assist you with your compliance.
With ASIC sending a message that compliance with new regime in something needs to be taken seriously, RP Data is on your side to help with compliance matters.
Log on to RP Data to stay informed and compliant.
Watch a quick video on how to generate an AVM report in less than two minutes here.