The Loan Market Way - Step 2: Capture Objectives
As part of your responsible lending obligations, you must make reasonable enquiries about your client’s financial situation, requirements and objectives. Although the responsible lending obligations and the Best Interests Duty are separate obligations, the information gathered for the purposes of responsible lending may help you to determine what’s in your client’s best interests.
When meeting your client(s), you should validate the information provided thus far (be it via the Online Fact Find or via any other means). You must make reasonable enquiries to ensure the information provided is accurate and complete and, where relevant, record notes within MyCRM that can act as evidence that you have done so. This information should also be verified against the relevant supporting documentation.
The Goal Setter
Alongside the Online Fact Find, the Goal Setter is designed to ensure you meet your responsible lending and best interests obligations. As per RG273.45, in order to make an individual assessment, you will need to understand your client’s needs, goals and financial situation. The information captured within the Goal Setter will support in forming any recommendation.
The Goal Setter also plays a critical role in educating your customer so they can make the best possible decision. As per RG273.165, this is an important component of meeting the Best Interests Duty and commentary should be added to highlight that these conversations have taken place. This includes, yet is not limited to, conversations around rate preferences, repayment preferences, feature preferences and the client’s future goals and objectives. Whilst the Goal Setter provides information specifying details on these factors, notes should be captured within MyCRM to confirm conversations held and outcomes reached.
Word count: Across customer objectives and future financial goals, you must capture a minimum of 50 words.
Verification of Identify (VOI)
In order to provide credit assistance, you must verify your client’s identity. The verification of identity can be conducted either in person or via a video conference platform (Skype, Zoom, Go to Meeting are examples of secure service providers).
Loan Market’s VOI requirements can be found here. It should be noted that the recommended lender may have differing requirements. These can vary significantly so you should review the recommended lender’s specific requirements prior to submission.
Loan Market recommends the use of FileInvite to collect supporting documentation from your clients.
To see the minimum supporting documentation required to meet Loan Market’s requirements, go to Important Documents in MyCRM.
In addition to Loan Market’s minimum requirements, you must also obtain any additional documents that can assist you in validating your client’s financial position and making a credit recommendation. In addition, lenders will have specific document requirements that will also have to be met. All documents are required to be loaded within MyCRM.
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