breaking news

NCCP costs brokers time, money

2841 people have read this article
Wednesday, 23 November 2011

Jessica Darnbrough

The weight of greater compliance is adding a significant burden to the time spent on each application, one broker has claimed.

Speaking to The Adviser, Property Planning's Will Foster said NCCP had forced him to work, on average, 1.5 hours longer on every loan application.

"NCCP is definitely having a negative impact on my business in terms of time management. It takes longer to do every single deal, which limits the amount of business you can write, unless you employ additional staff to look after the administration duties," he said.

According to The Adviser's latest comprehensive industry wide NCCP survey, more than one in three brokers are working an additional five hours every week under the new compliance requirements.

Moreover, an incredible 73.6 per cent of the 441 brokers surveyed said NCCP has increased their work load "substantially".

But while brokers are definitely doing more work under the new legislation, Connective principal Murray Lees said things will eventually get easier.

"Brokers that put in the hard yards now, can expect positive returns in the future," he said.

"Compliance will become second nature and the property market will pick up, so brokers that work hard will find that when the cycle goes around again they will be very well positioned to take advantage of it."

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-1 #17 We Need A Union 2011-11-23 19:03
If brokers dont unite, we will continue to have no voice. Aggregators are good for nothing as far as voicing and advocating our concerns. We should begin a union so that when an issue arises , whether it be at a funder level or aggregator level, we can use the weight of our support to make our point. Until this happens we will continue to be treated as second rate citizens.
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0 #16 Wind Back Aus 2011-11-23 12:44
Under warm fuzzy guise our government(s) push through more and more legislation. Finance, infrastructure, military, environment etc. All to benefit the government machine.In our case the catch-cry was to "protect the consumer"! In typical Aussie fashion, most of us sat by the sidelines thinking "she'll be right mate". The effect is that all the smaller groups are forced in a handful of larger groups which makes it easier for govt to tightly control a few rather than chase many. Most have not realised it but we are already in a communist dictatorship. People just accept what government does. The few that make a noise are given a "listen" so as "to be seen to be democratic". Yet the decisions are already set in stone. Eventually we will see unrest but that will be in someone else's lifetime.In our case, the winners are the big banks, Governement with more jobs for them, Austrac (and ASIO) by making it easier to keep track of peoples finances with only a handful of banks to audit etc.
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+2 #15 NCCP Benefits! 2011-11-23 11:46
Yes NCCP is time consuming and paperwork intensive but the upside is, we have become the only source able and qualified to provide credit advice. Therefore all service providers (accountants, financial planners, real estate agents, building consultants) who's clients require credit services and advice must refer them to a licensed ACL holder or someone qualified under an ACL license.
But you guessed it, this is not happening and unqualified and unlicensed individuals are still providing credit information because they use to before NCCP. It is time ASIC took action against other industry sectors to protect all us compliant brokers that have incurred great cost to retain or acquire our ACL standing. Where is the funneling of business towards us as it was meant to be a positive result of NCCP legislation. We incur the stick daily so where is the carrot. Where is our reward for being NCCP compliant brokers?
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0 #14 Wake up Brokers 2011-11-23 11:26
NCCP - National Consumer Counter Production. The client earns $200k p.a., has $600k in loans and wants a $30k upstamp and we make two visits. We issue 4 sets of paperwork to comply with our NCCP obligation requirements. Although the client has $100k in uncommitted income. We still do a full needs analysis and a budget yet as a sophisticated investor, he can drop $80k in to a property investment without batting an eyelid. Go figure and for all our work we might receive $120.
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+1 #13 morebroke 2011-11-23 10:27
In answer to Broker boy, the car yard only needs to do "all this stuff" if they have a license and as yet, not all car yards have applied as they don't have to yet. If they also do mortgages, then they have to do it now.
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0 #12 Stephen Nugent 2011-11-23 10:19
The feedback shows that 80% of brokers are negative about he impact of the NCCP. In this business we have embraced NCCP and dove tailed it with our existing processes. IT adds 30minutes to our initial document preparation, it has meant that we speak a little differently with our clients and our file reconciliation at settlement is a little more meticulous. I look forward to the opportunities that the compliance will bring, our clients are very happy with our diligence and observance of our responsibilitie s to them. Those who want to whinge... move on over.
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+4 #11 TJ 2011-11-23 10:00
And the one I hate the most.You've had a client for more than 6 years or so. You've written close to a dozen loans for them. You know them & their financial affairs nearly as good as they do (sometimes better), and you are still expected to conduct a full Needs Analysis etc. Why can't we get waivers from existing clients that they don't want this extra burden on how we deal with them?
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+2 #10 brokerboy 2011-11-23 09:42
can anyone tell me if the local car yard finance guy needs all this NCCP stuff?
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+4 #9 Ken B 2011-11-23 09:35
This is a typical example of a Labor govts attitude to all those nasty self employed brokers. A it doesn't help the clients much if at all. B it doesn't stop the crooks in the industry - we all know them and nothing happens.
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+4 #8 Paul 2011-11-23 09:26
My customers are no better off for the additional NCCP work both they and I need to do to get a loan lodged.

I think Will is being generous to NCCP in saying it adds 1.5 hours extra / application.

I don’t see Murray’s NCCP ‘positive returns’ anywhere.

NCCP – just another example of governments imposing unnecessary red tape, bureaucracy & impediments to business. Did I hear the sound of a peanut being cracked with a sledgehammer somewhere??
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