While the industry continues to deliberate over whether it should move towards credit representative or ACL, aggregator LoanKit has delivered an alternative third option.
Brokers that wish to hold their own Australian Credit License, but do not wish to deal with the compliance requirements can outsource the burden to LoanKit.
For $330 a year, LoanKit has said it will manage the licensee’s compliance obligations.
“We will create the necessary compliance documents and registers and then provide these to the broker as well as provide credit ombudsman liaison and credit audit services,” LoanKit head Kym Rampal told The Adviser.
According to Mr Rampal, the third option will give brokers the flexibility of lender panel, without the burden of compliance.
“If a broker is a credit representative of a particular aggregator, it means they are only allowed to use the aggregator’s panel of lenders. But if they hold their own license, they can use any lender. However, it does mean that they have to deal with various compliance requirements. The third option gives brokers the best of both worlds.”
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