Pepper has received a big tick for its sub-prime products, which one broker said could help build a more loyal client base.
Standard & Poor’s has affirmed Pepper’s “strong” sub-prime residential loan servicer ranking while also awarding it a “strong” prime residential loan servicer ranking for the first time.
Grand Capital Finance Group writes many Pepper loans, with about 55 per cent of its business coming from the non-conforming sector, according to director Dorian Traill.
Mr Traill said non-conforming clients were often extremely grateful to brokers who could push loans through for them.
“Some become extremely loyal. It comes down to being solution-based rather than an order taker. That’s how we define the difference between non-conforming and 'mainstream',” he told The Adviser.
Mr Traill added that the Brisbane firm also helped clients work towards mainstream status.
“Most people who realise they’re in the non-conforming space are a bit apprehensive because the rates are a bit higher. They want to know how long they have to be in the higher interest rate for,” he said.
Mr Traill said most non-conforming loans were straightforward and required only a little bit more work on the part of brokers.
“It’s a little bit riskier, but we specialise in it and we’ve been doing it since 2003, so we know what questions to ask,” he said.
