Delays to processing, poor communication, and issues with lender systems have been flagged by brokers, with the FBAA calling for immediate improvement.
The managing director of the Finance Brokers Association of Australia (FBAA), Peter White AM, is calling on lenders to improve their service level agreements and responsiveness and standardise discharge forms to overcome reported delays in loan processing.
The calls come after a recent FBAA poll found that brokers have been experiencing delays in loan processing over the last six months.
According to the poll – conducted in July by CoreData and sent to 100 FBAA brokers – each broker applied for 49 loans on average in the past year, with an average approval rate of 89 per cent.
However, 60 per cent of finance and mortgage brokers said they had experienced delays in loan processing over the past six months, with 45 per cent citing “poor communication from lenders” and 39 per cent flagging “technical issues with lender systems”.
More than a third of brokers said lenders had “inflexible requirements for borrowers” (35 per cent), while others noted “complex documentation requirements” (31 per cent), “post-settlement issues” (30 per cent), and a “lack of transparency in lending terms” (26 per cent) as difficulties.