Mortgage Business
RLO changes could boost turnaround times: Westpac By Malavika Santhebennur 16 April 2021
The major bank’s CEO has reiterated that responsible lending changes could simplify the lender’s processes and improve mortgage approval times.
Westpac CEO Peter King appeared before the economics standing committee hearing during their ongoing Review of the Four Major Banks and other Financial Institutions on Thursday (15 April), where he was asked what impact the changes to the responsible lending obligations (RLO) would have on Westpac’s customers, including potential future customers.
The National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 focuses on amending the credit laws so that they remove RLOs and extend the best interests duty to more credit assistance providers, among o
Westpac pledges to improve turnaround times
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The bank’s CEO attributed longer loan approval times to moving processing roles offshore in 2020 and responsible lending checks and balances, adding that it is looking to improve the process.
During the economics standing committee hearing for the Review of the Four Major Banks and other Financial Institutions on Thursday (15 April), Westpac CEO Peter King was questioned about the bank’s turnaround times for mortgages.
The deputy chair of the committee and Labor member for Fenner, Dr Andrew Leigh, quoted figures from Momentum Intelligence’s Broker Pulse survey for February 2021, which found that Westpac’s average turnaround times for broker-lodged loans stood at 20.5 days. (However, the data from the March 2021 Broker Pulse survey, released this week, showed that brokers are reporting Westpac’s turnaround times have since reduced to 13.7 days.)
The CEO of the big four bank has acknowledged that “time to yes” between direct and broker channels is markedly different, which he suggested was partly due to high volumes.
Print
The chair of the House of Representatives Standing Committee on Economics, Tim Wilson appears to have made political the issue of allowing people to access superannuation for first home deposits onto the committee’s agenda via a series of questions on notice to superannuation funds.
Wilson’s questioning of superannuation funds has been revealed in questions on notice filed by Wilson as part of his committee’s Review of the Four Major Banks and other Financial Institutions with industry fund, Prime Super being amongst the first to provide answers.
Wilson’s use of the questions on notice comes amid claims by some member of the Federal Opposition that his actions are inappropriate and represent a politicisation of the committee process.
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