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Bank prohibits brokers from self-submitting loans for personal use

by Reporter1 minute read
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Teachers Mutual Bank has become the latest lender to prevent brokers from submitting their own personal mortgage applications to the bank.

Following in the footsteps of Westpac, which announced in April that it would no longer accept loan applications from brokers where they are one of the named loan applicants, all brands under the Teachers Mutual Bank umbrella have likewise changed their credit policies.

As of Tuesday, 16 October, Teachers Mutual Bank, Firefighters Mutual Bank and UniBank will no longer accept loan applications from brokers where the broker is also the applicant of the loan. 

Mark Middleton, head of third-party distribution for Teachers Mutual Bank Limited, commented: “This change is in line with our responsible lending commitments and strengthens our standards.”

Several other major banks have introduced similar changes relating to self-submissions this year, with ANZ announcing in February that it would no longer pay commissions to brokers that submit asset finance (including commercial) applications for themselves (or for loans in which they are party).

[Related: Westpac Group announces new credit policy changes]

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