A non-bank lender has called on its broker partners to “ask additional questions” to their clients amid the economic uncertainty surrounding the COVID-19 crisis.
Non-bank lender Resimac has issued a notice to brokers, urging them to exercise greater vigilance in the loan application process and ensure they capture the full extent of the COVID-19 crisis’ impact on their clients.
Resimac’s general manager, distribution, Daniel Carde, said that while the lender’s product range, credit policy or responsible lending obligations remain unchanged, the fallout from the COVID-19 pandemic may be limiting a greater number of borrowers’ ability to service a loan.
“The current environment has made it necessary for both brokers and lenders alike to ask additional questions about the impact this global event may have on an individual’s circumstances,” he said.
“A broad cross-section of the community may be experiencing some type of change in circumstance as a result of COVID-19 precautions, which we won’t necessarily know about unless brokers ask the right questions.”
Resimac has suggested that brokers ask the following questions to borrowers:
This follows an announcement from NAB earlier this week, which now requires brokers to complete a COVID-19-specific template as part of a home loan application.
The template would include considerations of a client’s job/income security and any COVID-19 relief assistance they have received or requested, including loan repayment freezes or the JobKeeper wage subsidy
Other stakeholders in the lending industry have also adjusted their risk appetites, with mortgage insurer QBE Australia imposing an “embargo” on the provision of lender’s mortgage insurance to borrowers employed in industries hardest hit by the outbreak.
Deposit bond provider Deposit Power has also revised its underwriting policy for short-term deposit guarantees, doubling the equity requirement for home equity products from one to two times the deposit amount.
[Related: NAB clamps down on serviceability]
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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