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Bendigo and Adelaide Bank's Damian Percy has called on all of Australia's non-majors to introduce a standard loan application document to make dealing with this sector an easier proposition for brokers.
Mr Percy's comments were made at a recent Leadership Luncheon hosted by The Adviser in Sydney, which brought together senior representatives from all of Australia's non-majors that distribute mortgages via the broker channel.
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Mr Percy said Australia's non-majors are missing out on a lot of business, because they have made it too difficult for brokers to do business with them.
"We all have slightly different loan requirements. Each lender requires its brokers to send through slightly different documents. Because we don't have the regular supporters that the major banks have, it has gotten to a point where some brokers would have to sit down and read a manual on how to submit a loan to us," he said.
"If they think submitting a loan is going to be too difficult or time consuming, they will often opt to out the business with a lender that they know and a lender whose documentation requirements they are well versed in.
"I think all the non-majors should have a standardised loan application. It would make it easier for us to do business with and then we wouldn't miss out on business opportunities."
Mr Percy told The Adviser that the lender was currently working on ways to improve their loan document requirements and make doing business with them easier.
But Mr Percy isn't the only lender to argue that loan documents should be standardised between lenders.
Bankwest's retail head of specialist banking Ian Rakhit agreed and said non-majors needed to make it easy for brokers to do business with them in any way possible.
"Brokers know what the majors want in terms of documentation because they write a lot business with them. Why do we need to have so much documentation and why does our paperwork have to be so different? We have to make it easy to do business with us, otherwise, we will miss out on broker business altogether," he said.
