The latest compliance news - April 2021
It's been a busy month down here in compliance! But don't fret, we've got all the latest compliance updates to keep you keep you safe and firing from all cylinders below!
Remember, for any compliance questions, reach out to firstname.lastname@example.org
Re-issuing a Game Plan: this policy covers the different scenarios where you must re-issue a Game Plan and when it is sufficient to leave notes and confirm with your client instead.
For all policies check out the Loan Market Policy tab in State of Play.
As a reminder, we recently made updates to our Supporting Documents Minimum Requirements Checklist. These changes relate to the acceptable oldest supporting documents changing from 30 days to 60 days for specific document types.
We now accept supporting documents that are dated no older than 60 days when submitted to the lender for oldest supporting documents relating to:
- Bank Statements for expenses and liabilities
- PAYG income (i.e payslips)
- Other income (including rental and government income)
- Ensure you save the serviceability calculator to the file in MyCRM. Remember this can be either the Loan Market serviceability calculator or the lender’s calculator.
- All supporting documents need to be uploaded into MyCRM as per the Supporting Documents Minimum Requirements. Not uploading documents may impact your audit score.
Remember if your client requires an indication of borrowing capability in order to pay a deposit, the requirement is that you assist them with getting a pre approval. You must not sign an eligibility letter as this puts you at risk if the client cannot subsequently obtain the loan if you have not yet done a full assessment. The MFAA have also confirmed that this is their guidance.
Do I need to issue a Game Plan for commercial loans?
- As commercial loans are not covered under NCCP, you don’t need to issue a Game Plan.
Does BID apply for corporate trustee residential loans?
- No, BID does not apply for corporate trustees. This is in accordance with the MFAA’s view.
Do I need to have 3 product comparisons for SMSF residential loans?
- If the SMSF trustee is individual then yes as NCCP and BID apply, but if the trustee is corporate then you don’t need to have 3 product comparisons. If only 1 lender and 1 product is available, then you will need to put a note explaining the circumstances.