Mortgage application vetting

There seems to be a general consensus that the home loan market is slowing and banks mortgage lending criteria are tightening. As a result, it is now more important than ever that you ensure the loan application you send to the lender on behalf of your client is the best it can be. Submitting a high quality application to a lender will:

  • Help speed up processing by reducing requests for further information and explanation.
  • Improve acceptance rates.
  • Position you as a professional adviser.
  • Reduce rework and improve your efficiency.
  • Demonstrate you are placing client interests first.

These factors will help you to:

  • Build trust and loyalty with your clients.
  • Build referral business.
  • Generate more income which in turn increases the value of the business.

Service scope

Strategi’s vetting service will help advisers ensure the applications they submit to lenders are compliant with all adviser obligations under:

  • Legislation and regulation.
  • The Lending Code of Conduct for Mortgage Advisers.
  • Their key contractual obligations with lenders and head groups.

The vetting checklist used by Strategi has been developed with input from the mortgage advice industry (lenders, head groups and advisers). It encapsulates all the requirements to ensure an application is compliant and follows best practice guidelines. Areas checked include:

  • Diary note.
  • Application form.
  • Statement of position.
  • Evidence of income, deposit, equity, transactions, etc. as required.
  • Other essential documents such as identity, residency, valuation, building contracts, trust deeds, declarations, rental agreements, etc. as required.

Note: Strategi will verify that the required information is provided but it will not check the accuracy/legitimacy of that information. If it has any concerns in this area it will raise these with the adviser.

The vetting process

The adviser submits the entire application to the Strategi Vetter prior to submission to the lender. The Vetter will assess the application and provide written feedback to the adviser, highlighting any deficiencies such as missing or incorrect information, and suggesting where the application could be enhanced.

The adviser is then given the opportunity to rework the application and re-submit to Strategi. Once all deficiencies are corrected, Strategi will issue a ‘Confirmation of completion of application vetting' letter. This confirms that the loan application has been prepared in accordance with:

  • The requirements for assessment of credit applications commonly applied by lenders.
  • Performance criteria outlined in the Residential Property Lending Strand unit standards of the New Zealand Certificate in Financial Services Level 5.
  • The Lending Code of Conduct for Mortgage Advisers.
  • Mortgage adviser obligations under the Responsible Lending Code, March 2015, issued by the Minister of Commerce and Consumer Affairs.

What will it cost?

The cost for vetting an application will vary depending on:

  • Whether it is a one-off check or the adviser signs up to multiple checks.
  • The length of the vetting – pricing is based on two submissions per client application. The cost for additional submissions of the same application will be negotiated on a case by case basis.
  • Whether the contract is with an individual adviser, or whether the employer/aggregator/head group has negotiated a contract for multiple advisers.

Contact us for more information on this vetting service and for a quote.