Comments on: Taxpayer Alert: ATO has your bank application under review http://www.crikey.com.au/2008/04/15/taxpayer-alert-ato-has-your-bank-application-under-review/ now with extra source Tue, 24 Nov 2009 09:54:15 +1100 http://wordpress.org/?v=2.8.6 hourly 1 By: Steve Murphy http://www.crikey.com.au/2008/04/15/taxpayer-alert-ato-has-your-bank-application-under-review/#comment-5378 Steve Murphy Thu, 01 Jan 1970 10:00:00 +0000 #comment-5378 I find this article disturbing to say the least. The answer to this problem is staring us all in the face yet no one wants to take this option. I think everyone likes the fact that we can blame the broker when it all gets to hard or people want to lie about their incomes and so on. As a broker myself i agree that the industry is broken but placing blame and increasing government regulation will achieve nothing. At the end of the day it is the banks that approve and not approve the loans not the government and certainly not the broker. As for the low doc loans i am certainly aware that there are brokers out there that do the wrong thing no different to any other industry. It is certainly not as bad as you are suggesting however it could always be better. The training needs to come from the banks down in conjunction with the government. Perhaps one idea is that clients could go to the branch for the final declaration. Then lets see who is lying. There are more dodgy people than brok I find this article disturbing to say the least. The answer to this problem is staring us all in the face yet no one wants to take this option. I think everyone likes the fact that we can blame the broker when it all gets to hard or people want to lie about their incomes and so on.
As a broker myself i agree that the industry is broken but placing blame and increasing government regulation will achieve nothing. At the end of the day it is the banks that approve and not approve the loans not the government and certainly not the broker.
As for the low doc loans i am certainly aware that there are brokers out there that do the wrong thing no different to any other industry. It is certainly not as bad as you are suggesting however it could always be better. The training needs to come from the banks down in conjunction with the government. Perhaps one idea is that clients could go to the branch for the final declaration. Then lets see who is lying.

There are more dodgy people than brok

]]> By: marty mcdonald http://www.crikey.com.au/2008/04/15/taxpayer-alert-ato-has-your-bank-application-under-review/#comment-5379 marty mcdonald Thu, 01 Jan 1970 10:00:00 +0000 #comment-5379 Low doc loans have always been around shock horror!! Back in the 60's and 70's they were called "asset lends" . Back then it was at the bank managers discretion as to whether to provide such a loan or not and was based mainly on the loan to value ratio. Low Docs came about with the demise of the local bank manager and were designed to cater for high net worth self employed clients whose financial affairs were overly complicated making it almost impossible for a bank assesor to determine their capacity to repay a loan. They are valid for this reason but should be restricted to say 60% LVR only. I am broker and I recently did a $3,000,000 low doc loan for a client who had net assests of $30,000,000 but could not prove his income and had been decliend by his bank. I dont ever suggest what to put down as an income figure on an application and I have refused to do loans for people where I didnt believe their estaimtes. Problem is they just go to elsewhere including direct to their bank. Low doc loans have always been around shock horror!! Back in the 60’s and 70’s they were called “asset lends” . Back then it was at the bank managers discretion as to whether to provide such a loan or not and was based mainly on the loan to value ratio. Low Docs came about with the demise of the local bank manager and were designed to cater for high net worth self employed clients whose financial affairs were overly complicated making it almost impossible for a bank assesor to determine their capacity to repay a loan. They are valid for this reason but should be restricted to say 60% LVR only. I am broker and I recently did a $3,000,000 low doc loan for a client who had net assests of $30,000,000 but could not prove his income and had been decliend by his bank. I dont ever suggest what to put down as an income figure on an application and I have refused to do loans for people where I didnt believe their estaimtes. Problem is they just go to elsewhere including direct to their bank.

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