Brokers gain valuable insight into borrowers

Built on 18 months of extensive research conducted by Pepper Money, Veda, Dun & Bradstreet and Fifth Dimension, data presented at the roadshow highlighted that six out of 10 home loan customers who are rejected by prime lenders are eligible for alternative loans.

Pepper Money’s director of sales and distribution Mario Rehayem said that against the backdrop of a challenging industry environment, it was vital brokers understood the markets available to them and were clear on customer needs.

“A lot of brokers were surprised at the significant opportunities that non-conforming borrowers present in their own backyard,” Mr Rehayem said.

“Customers who fall outside the eligibility of prime lenders shouldn’t be overlooked, and as a provider of non-conforming loans, we want to ensure that our brokers understand the alternative loan options for these customers.”

Event attendees were presented with a detailed profile of key market segments that were missing out on loans from prime lenders.

“There are a range of reasons why customers can fall outside the eligibility of prime lenders,” Mr Reyahem said.

“Some of these customers may have qualified for a prime loan yesterday, and because of a tweak to a lender’s algorithm, find they are no longer eligible.

“If they understand the alternative products available in the market, brokers have a real chance of helping to find a solution for these customers.”

The roadshow also featured a video from Dun & Bradstreet which covered comprehensive credit scoring and how industry protocols will change in future.

Also in attendance as guest speaker was Australian gold and silver medal Olympian Dan Collins, who explained how to create a high-performance culture in business.

Following the success of this year’s event, Pepper Money will return with another national Insight Roadshow in 2017.

[Related: The four myths of specialist lending]