The major bank has announced a number of changes to its submission standards for loan applications in a bid to “achieve unconditional approval at first touch”.
NAB has informed brokers that as of Friday, 19 June, documents required for the formal assessment of a loan application will became “mandatory” upon initial lodgement.
Documents required include:
NAB will also require submissions to contain the following supporting documentation, where applicable:
NAB has claimed that the changes are designed to reduce turnaround times and enable more applications to “achieve unconditional approval at first touch”.
According to Momentum Intelligence’s latest Broker Pulse research, NAB’s turnaround times have increased from an average of just over 12 business days in April to 14 business days in May.
This has coincided with a fall in the share of brokers submitting mortgage applications to the big four bank, down from 29 per cent to 25 per cent over the same period.
Accordingly, NAB’s net promoter score slipped deeper into negative territory, falling from -30.9 in April to -48.1 in May.
NAB isn’t the only big four bank to amend its application process in a response to a blowout in turnaround times.
Earlier this month, ANZ overhauled its process by onboarding and reallocating 150 staff to its assessment team and prioritising “time-sensitive” loan applications.
ANZ has publicly acknowledged the deterioration in turnaround times, which increased from an average of 10 business days in April to an average of 22 business days in May.
[Related: NAB, Westpac lose broke business]
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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