A South Australian-based lender has announced that it will launch a new compliance model designed to ensure that mortgage applications meet “stricter nationwide criteria”.
HomeStart Finance has revealed to brokers that it will launch its new “Lending Governance Model” on Thursday, 4 April 2019.
According to the lender, the model was designed in consultation with mortgage aggregators to ensure that home loan applications “meet responsible lending expectations common to most lenders” and that they are processed in line with HomeStart’s “Service Level Agreement” commitments.
HomeStart added: “It is also designed to manage serious incidents, if they arise, in a specific, measurable and objective way.
“We have enhanced our supporting activities to help our brokers submit quality applications, which will provide customers with better experiences and outcomes.”
“This model will target specific areas of omission or error in lending applications, which stem from a breach of compliance and responsible lending obligations to your [broker’s] customer, your aggregator and your lender.”
HomeStart noted that once the model is launched, brokers must submit loan applications with the following to avoid “serious incident”:
The lender added that if the criteria are not addressed or are addressed in error in any application, the below escalating process will apply:
The new compliance guidelines will apply for all new applications lodged from Thursday, 4 April.
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