Get across Comprehensive Credit Reporting
There are updates to the Loan Market Supporting Documents Minimum Requirements. As of Monday June 21, Comprehensive Credit Reporting (CCR) will be considered as an acceptable process for verifying liabilities and meeting ‘reasonable enquiries’ (subject to the requirements of the Privacy Act 1988).
You will now have the choice of requesting an Equifax credit report (which can be directly run through MyCRM) to validate the account conduct of a client's existing liabilities such as credit cards, personal loans and existing home loans not being refinanced. This change is being made to assist you in verifying a customer's liability position and to provide greater visibility of repayment history.
Please note, this excludes existing home loans being refinanced, which will still require three months of bank statements with acceptable account conduct.
A few important points with regards to this policy as below:
- We will still require three month’s transaction bank statements to assess a client's living expenses.
- You can continue to collect existing liability statements OR choose to utilise CCR (ensuring this is aligned to the lender standard).
- If there is questionable account conduct that is highlighted through the report then you must request three month’s bank statements and be satisfied that the client's conduct meets lender requirements.
- If a client has declared a liability that is not visible on the credit report then an account statement no older than 60 days will be required.
- Remember the importance of satisfying reasonable enquiries into the customers liability position - this means that although you may rely on CCR, there will be occasions when you will request statements.
- What constitutes taking ‘reasonable steps’ to verify the information provided is generally scalable, and what amounts to reasonable verification will depend on the information and resources that are accessible and the facts and circumstances of each case (refer to RG209.46 for further guidance).
For more information, find the Supporting Documents Minimum Requirements Checklist here.