The major bank has revised its home lending policy to align with recent guidance regarding the implementation of the new banking code.
ANZ has made changes to co-borrower and financial abuse provisions introduced in response to the new Banking Code of Practice.
The bank noted that the revisions have been made to address recent concerns over the original wording of the declaration forms, which broking industry stakeholders feared would impose a legal obligations on brokers who were not qualified to assess a borrower’s vulnerability.
ANZ has now stated that if each co-borrower is receiving a “substantial benefit” from a loan, the details of the substantial benefit are required to be documented by the broker, which may include instances in which:
The bank added that if such examples apply, answers to additional questions are no longer required.
However, ANZ noted that if substantial benefit cannot be demonstrated, some additional questions are required to “protect a co-borrower”, adding that:
Moreover, ANZ has rephrased its financial abuse declaration form, with brokers now required to ensure that during their dealings in connection with the loan application:
“These changes aim to simplify the ANZ process and address recent commentary around the Banking Code of Practice provisions relating to co-borrowers and financial abuse,” ANZ stated.
“This will also ensure customers continue to be afforded the appropriate level of support and ANZ continues to meet its requirements under the code.”
This comes after the Australian Banking Association, the Mortgage & Finance Association of Australia, and the Finance Brokers Association of Australia agreed on a “common approach” to identifying financial abuse in a co-borrower arrangement.
Charbel Kadib is the news editor on The Adviser and Mortgage Business.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.
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