A big four bank has decided to overhaul its third-party origination process with a new digital program expected to hit the market next month.
In a note to brokers this week, ANZ revealed that handwritten applications will be scrapped in favour of a ‘click and drag’ process to upload all mortgage documents.
“We understand you want to spend your valuable time having deep and meaningful loan conversations with customers so we’ve enhanced our ANZ home loan application process, making it easier for you to lodge a home loan application with us,” the bank said.
ANZ’s application capture process will be 100 per cent online from 14 July for eLodge users and 19 July for Apply Online users.
In addition to submitting a full individual or joint end-to-end application through Apply Online or eLodge, brokers will soon be able to capture a company or trust mortgage application, including the business entity, online.
Amid increased regulatory pressure on interest-only mortgages, ANZ will allow brokers to record a “Reason for Interest Only” from a drop-down selection and if required an “Other description” field will be made available where those reasons don’t fit the customer's objectives. Brokers will also be able to add loan interview diary notes online.
The major bank further explained the new features of its updates application form.
“The updated application form will be dynamically created by the system based on the application type,” it said. “For example, if there is a guarantor in the application, the guarantor checklist section will be completed online or Breakfree details will only generate where applicable.”
Importantly, ANZ will now only require one signature form the borrower: “When you print the application for the customer to sign they only need to sign in the Applicant/Guarantor Declaration section,” the bank said. “All terms and conditions have been moved to the Applicant/Guarantor Declaration section so the customer only has to sign the application once.”
ANZ’s update comes as the major banks appear to be taking different approaches to third-party origination. With reports that CBA and Westpac are pulling back, NAB and ANZ are now stepping into the breach.
The latest AFG Compeetition Index, released this week, found that ANZ has consistently seen the lion’s share of broker-originated mortgages since September last year.
ANZ saw 15.8 per cent of AFG broker-originated loans in May, up from 13.4 per cent in June 2016. NAB also increased its share from 9.5 per cent to 10.8 per cent over the year.
Meanwhile, Westpac’s share fell from 12.4 per cent to 11.8 per cent. CBA saw the most significant decline, from 20.5 per cent in June 2016 to 11.8 per cent last month.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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