Firstfolio Aggregation Q3 Professional Development Day

Transcription

1 Firstfolio Aggregation Q3 Professional Development Day

2 Aggregation $160 $140 $120 $100 $80 $60 $40 $20 $0 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 FF Aggregation FF1 PBN Others Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Wholesale $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Wholesale Conversion $ Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Submissions Formal Approvals Settlements

3 Aggregation Wholesale $1.345 $1.418 = $73mil increase July July $106m $132 >$26m $66 $163m Lodgement $40 $69 Settlements = >$29m Jan June 2012 Signed up #36 new brokers to the business Agg - $73m W/S - $29m Total $102m 7.40% growth

4 Important updates!! * CBA metrics 10/09/ /11/12.575% Upfront <.625% previous qtr 3/09/12 >.65% upfront increased from.60% Trail yrs.20 >4yrs

5 New Leasechoice Product NO DOC leasing Product

6 NO DOC = NO DOC NO BAS NO ACCOUNTANT LETTERS NO TRADING BANK STATEMENTS Loan Amount: $2k min >$100k New Motor Vehicles $2k min >$50k All other Acceptable Assets To be eligible: Must have clear credit Must be registered ABN & GST >2years Applicant must be a Property owner New equipment/asset only Need to Provide: I page Application form Copy of Drivers Licence Current Rates notice Supplier invoice

7 Acceptable Assets What can I earn? e.g. Up to 2% on Wheels Up to 4% other Assets e.g. $50k Car Comm = $1k Less 20% = $800 per Car e.g. Telephone System 4% = $600 Less 20% = $480 Commissions

8 2013 FLeaTS Fees 8

9 History What you had What you paid What you have now Lead Management What you had PLUS Loan matching $60 p.m. Brokerpedia RCTIs CRM campaigning Enhanced online calculators Pre-populated NCCP forms ipad, and other small device Loan comparison on small device Admin support access 9

10 Enhancements What we ve done at no cost to you What it cost Bloom Search (Brokerpedia) Targeted, personalised CRM campaigning as per broker requests Residex (limited uptake) Enhanced calculators on Broker Resources in FLeaTS Pre-populate NCCP forms Small device (ipad, iphone, tablet and smartphone) access to your FLeaTS database Small device access to FLeaTS loan comparison Admin support access $22,000 p.a. $15,000 (Dev. cost) $66,000 p.a. $ 1,000 p.a. $ 5,000 (Dev. cost) $10,000 (Dev. Cost) $10,000 (Dev. Cost) $ 2,500 (Dev. Cost) 10

11 Enhancements What s coming Cost to Firstfolio Enhanced lodgement via FLeaTS to 18 of our lenders about 7 more than current lodgement mid-november $ 75,000 (Dev. Cost) $138,500 p.a. Online Professional Development training facilities and autotracking of CPD hours. Recorded sessions from professional external providers available at no cost to you and all are accredited for CPD hours. $ 40,000 p.a. 11

12 Future fees Clearly these increased costs (some of which are imposed under new legislation) cannot be sustained without some sharing amongst users The new fees to be implemented from 1 st December 2012 (after the new enhancements are implemented and rolled out) represent a modest increase across the network and enable us to deliver these sought after facilities. Firstfolio s aggregation fees (which include the FLeaTS fee) remain the most competitive in the market for full-featured systems 12

13 Our competitors fees Company Monthly software fee Vow Financial $160 Finsure $100 Astute $130 + additional options AFG $70 - $140 Fast Choice $100 Basic $200 CRM & Marketing 13

14 Fee Schedule Category Mthly fee Individual brokers Package A Unlimited additional installations Package B includes: 50 Property reports per month Unlimited Suburb demographic searches Trail Protection $95 p.m. $145p.m. Group > 50 to maintain this price If go direct you pay $150 14

15 Questions???

16 AMP Rob Thomas

17 Why AMP Bank? Firstfolio PD Day - September 2012

18 Who is AMP Bank Australian Company been around for over 160 years 2 nd largest owner of retail shopping centre behind Westfield On Average 1 in 6 Australians are doing business with AMP Distribute Mortgage products through Broker and Planner Channels Credit and Customer Service based in Australia 2012 Bank of the Year MPA ranked 1st by brokers for commission

19 Upfront Valuations Launched 7 th October Simplified format Instant Val or Full Val Greater control over process

20 Servicing/Policy Actual repayments we even split repayments!! 100% rental used up to 80% >85% LVR no cash out restrictions No Credit Scoring - All deals go to credit We have a genuine DUA Statement policy Lend to all trusts formed in Oz Complicated deals O/S income we take 100% - certain currencies

21 Products - There s Something for everyone Essential Home Loan 5.90% Basic Pro-pack Master Limit Page 21

22 Essential Loan Rate 5.90% Still waiving app fee and settlement fee No ongoing fees Free redraw min 2k P & I only PAYG applicants only

23 Basic loan Mum & Dad Pro Pack Variable rate 6.07% Fees $545 no ongoing or annual fees Can split once for free Can split with fixed under package 100% offset a/c fee free available against variable (ie fee free Banking)

24 Pro Pack Can have 10 splits $349 Annual fee Variable rate over 250k % (85bpts off SVR) Don t forget about Intro variable 5.87% LOC available Master Limit option available

25 Roadshow specials We are waiving the following until end of September Essential fees remained waived Pre Approval fee of $350 Master Limit fee of $250

26 Deposits at AMP Accreditation required Available for both Personal and Business applicants No Advice policy (You do not sell but you can help arrange ) Diversify your income Competitive Rates and products Trail Commissions Term Deposits 0.20% AMP First 0.10% easytransact 0.10% easysaver 0.10% Business easysaver 0.10% easycash Management 0.25% FHSA 0.20% Payable on account balance monthly

27 SMSF AMP SuperEdge Loan Sneak Peek LVR 80% Standard Variable rate (Currently 6.87%) Fixed rates available $1925 Solicitor Fee to review SMSF Deeds (any deed acceptable at this stage!) &.100% Offset available!!! can be used as cash hub for SMSF In pilot phase at present some of these details may change

28 Rob Thomas BDM AMP Bank

29 Pepper Home Loans Neil Meurant

30 Pepper Homeloans 2012

31 Why Pepper? Flexi Advantage & Self- Employed Advantage Things to Remember NCCP v New Products Contacts

32 Why Pepper? Understand why brokers choose Pepper Homeloans and improve your conversion rates. Below are typical examples of declines by mortgage insurers or major banks based upon LMI and credit scoring criteria: Late payments on existing secured or unsecured debts Not an existing customer to bank Low Doc restrictions Multiple unsecured debts Multiple credit enquiries Declined by another Mortgage insurer Length of employment Post Code restrictions Acceptable income Cash out Credit Impaired

33 Why Pepper? Pepper is a pioneer of the Australian specialist mortgage sector and is one of Australia s leading non-bank financial institutions. We offer a genuine financing alternative to prime quality borrowers who are typically denied access to residential mortgage finance due to restrictive lending criteria. Simplicity Flexibility Great Service A Can Do Approach

34 NCCP (RG 209) Responsible Lending: Clear and Simple 1. Make reasonable inquiries about consumer's financial situation, requirements and objectives. obligation to make reasonable inquiries is scalable the below is a sample only: income & employment fixed & variable expenses existing debts, credit history Note: This is not intended to be an exhaustive list of your obligations or types of evidence that you could use to verify information provided by a consumer. What amounts to taking reasonable steps to verify information is scalable and depends on the circumstances.

35 NCCP (RG 209) Responsible Lending: Clear and Simple 2. Take reasonable steps to verify the consumer s financial situation: PAYG = recent pay slips, confirmation of employment (subject to the requirements of the Privacy Act 1988) Self Employed = recent tax returns, BAS All = credit report, information/reports from other lenders (subject to the requirements of the Privacy Act 1988) Note: This is not intended to be an exhaustive list of your obligations or types of evidence that you could use to verify information provided by a consumer. What amounts to taking reasonable steps to verify information is scalable and depends on the circumstances.

36 NCCP (RG 209) Responsible Lending: Clear and Simple 3. Make a preliminary assessment about whether the product is not unsuitable for the consumer. the product would be 'unsuitable' if: at the time of your assessment, they are unable to meet the financial obligations, or could only comply with substantial hardship; or if the product does not meet their requirements. You must be able to supply a copy of assessment, if requested. Note: This is not intended to be an exhaustive list of your obligations or types of evidence that you could use to verify information provided by a consumer. What amounts to taking reasonable steps to verify information is scalable and depends on the circumstances.

37 Responsible Lending & Refi (RG ) Refinancing: Where a consumer cannot currently comply with their existing financial obligations under a credit contract (or only with substantial hardship), a credit licensee can refinance the consumer s debt if, after refinancing, they will be able to comply with the resulting credit contract without substantial hardship. While the level of hardship may still be significant, the important factors are both that it is reduced and that, despite the unusually high level of hardship, genuine capacity to meet new repayment obligations can be demonstrated.

38 Pepper Flexi Advantage A Full Doc Loan for a Broad Range of Applicants. Max LVR 90% (Purchases Only) or 85% (Refinance) Max Loan amount $2.5 mil UNLIMITED DEFAULTS > 12 months ignored (paid or unpaid) Maximum of 1 months mortgage arrears accepted (conditions apply) Mortgage arrears paid within 30 days ignored Discharged Bankrupt 1 day

39 Pepper Flexi Advantage PLUS All the benefits of the Pepper Flexi Advantage Home Loan PLUS more Up to 2 defaults <12 months accepted Up to 2 months current mortgage arrears accepted Unlimited defaults and judgements registered >12 months prior to application accepted (paid or unpaid) Maximum loan amount $1 million Maximum LVR 80%

40 Pepper Self-Employed Advantage An alternative income verification product. Making it easier for selfemployed borrowers to purchase, refinance, consolidation debts or raise capital for business purposes. Defaults (paid or unpaid) registered >24 prior to application Max LVR 85% Max loan amount $2.5 mil

41 Pepper Self Employed Advantage Acceptable Income Documentation ABN Registered for 12 months GST Registered for 6 Months Declaration of Financial Position Minimum of 6 months Business Bank Statements

42 Pepper Self-Employed Advantage PLUS All the benefits of the Pepper Self-Employed Advantage Home Loan PLUS more Up to 2 defaults registered >12 months accepted Up to 2 months current mortgage arrears accepted Simplified paperwork no BAS required Max loan amount $1 mil Max LVR 75% Unlimited defaults or judgements registered >24 months prior to application accepted (paid or unpaid).

43 Introducing: Pepper Easy An alternative documentation loan makes it easier for self-employed borrowers who have had no credit judgments or impairments in the last 3 years. Ideal for self-employed or small business owners looking to buy or refinance and obtain cash out for business purposes Unlimited defaults, judgments or writs if registered over 36 months ago. Unlimited cash out for acceptable purposes including business use and payout of ATO debts. Max LVR 80% and Max Loan size is $1,000,000

44 Pepper Easy - Acceptable Income Documentation ABN Registered for 24 months GST registered for 12 months Declaration of Financial Position Minimum of 6 months Business Bank Statements Last Quarter s BAS Statement

45 Even more reasons to give Pepper a crack! Based on demand from our broker network, we have made the following changes to policy effective today, making our products even more flexible: Higher Maximum Loans: $2,500,000 (up to 65% LVR) $2,000,000 (up to 70% LVR) $1,750,000 (up to 75% LVR) $1,250,000 (up to 80% LVR) Up to 85% LVR on Pepper Self-Employed Advantage (alternative documentation loan)

46 Pepper A Can Do Approach to Credit Assessment Quick turn around Direct access to credit No credit scoring BDM support Apply online Simple products Easy to understand rates Committed to responsible lending

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48 Offer the solution Borrower was struggling with cash flow during quieter periods and had obtained 2 defaults & 10 court actions from previous quieter times and didn t want to be in that position again. Borrower consolidated all personal & business debts and obtained $30,000 in cash out and still had the ultimate outcome..more CASH FLOW!!

49 Offer the solution Existing Debt AMP Mortgage($310K) = $2,372 p/m Esanda($41K) = $1,087 p/m Credit Corp($13K) = $500 p/m Total monthly liability = $6,082 p/m CBFC Bus.lease($46K) = $2,123 p/m

50 Offer the solution Pepper Solution Loan Amount $440,000 New loan repayment $3,587 p/m Pepper Solution: Current repayment $6,082 p/m Pepper repayment $3,587 p/m Total Savings $2,495 p/m Pepper Product: Pepper 60% 8.65% Total fees incurred $7,270

51 Don t sell the rate, sell the repayment Giving the customer the weekly or monthly repayment is a much more salient way of presenting the interest rate. $280,000 loan $280,000 loan Interest Rate 6.91% Interest Rate 8.6% Repayment = $ p/w Repayment = $ p/w

52 Pepper The commonsense approach to lending These benefits are available across the entire product range: Minor defaults ignored (e.g. Telco) No limit on cash out for investment or business purposes No limit on the number of debts that can be consolidated No Lender s Mortgage Insurance Pay out of ATO debts acceptable Mortgage arrears paid within 30 days ignored Refinance of non-conforming, private or solicitor loans

53 Pepper Apply Online Reduce turn around times and apply via : AFG - Flex PLAN - Podium FAST - Podium CHOICE - Podium LOAN MARKET - Apply Online CONNECTIVE - Mercury

54 Neil Meurant Business Development Manager QLD/NT

55 Pepper Contacts Helpdesk (scenarios, status) Application Fax Website Online application

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57 Morning Tea am

58 Credit Advocates Australia Chris Andrit

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60 At we will work for your clients to: Repair Damaged Credit Files 60

61 Is this happening? Unknown defaults or judgments on files Applications submitted without all information Loan applications declined Less borrowers and less buyers 61

62 Our typical client Employment disruption Health Problems Family Dramas Product dispute SHOULD THESE ISSUES STOP A CLIENT FROM MOVING FORWARD? 62

63 3 Sides to this problem Client wants lowest interest rate Regulator wants best product Broker wants to write a loan IS THERE A SOLUTION? Yes! REPAIR THE CREDIT FILE 63

64 Benefits of Credit Repair Lower Interest Rates More Loan Approvals Lower Application Fees Reduced Loan Repayments GREAT DEAL FOR THE CLIENT 64

65 Benefits of Credit Repair Check individual circumstances* Repayments & savings based on loan of $ Saving $13200 per year 65

66 Why use CAA? We are passionate about Credit Repair and will go the extra mile to help your client We are experienced and have assisted brokers to repair client files for 5+ Years We are knowledgeable and understand the system, rules and guidelines We are focused we only do Credit Repair and do not write loans We are successful and have removed 800+ black marks from files The brokers who use us are successful and have written $140 million+ of loans after using our service 66

67 CAA Process Broker role 1. Organise to get a Veda or D & B client credit file prior to completing Loan Application. 2. If there is a problem on the file send us client contact details along with credit file with client s permission. 3. We contact the client and encourage them to try credit repair rather than applying for finance with another broker. 4. When we get a successful outcome we advise the broker and you write a NEW Loan. 67

68 Process & Costs Go to to download and complete our application form. Send the form and credit file to CAA. CAA will make an assessment and provide a fixed price quote. Your customer will pay a non-refundable deposit of $ per default/judgment we then get to work. Agreement is reached to remove the black mark and final payment of $900 is now due. Credit file is then cleared. 68

69 Recent Credit Repair Cases Reason/ Creditor/$ CAA Argument Approved Loan Interest Rate Cancel Serv/ Telco / $424 Went OS/ Finance/ $4831 Overdrawn/ Bank/ $3.9m Opened acc For relative/ Energy /$3150 Ignored Instructions Disregard Possession Law Process not Followed Assistance Withheld $292, % $375, % $315, % $840, % 69

70 Sample letters 70

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73 Contact: Chris Nav Credit Advocates Australia Level 2, 326 Keilor Road, Niddrie Vic 3041 Phone Fax

74 ANZ Vanessa Hyde

75 ANZ Update Jacqui Knegt Business Development Manager

76 Income Policy PAYG 1 payslip (not handwritten) showing 3 months YTD Dated within 60 days of the application date. NB. Payslips dated between July & September are not acceptable in isolation and must be supplemented by either a PAYG summary or a Tax agent prepared tax return etc If YTD not available a minimum of two payslips, (not handwritten) Indicates ongoing employment for a minimum of 3 months, (e.g. 1 payslip dated on 1st February and 1 payslip dated on 30th April) Most recent payslip is dated within 60 days of the application date, pay period end date Note:If YTD is not available, take the gross monthly, fortnightly or weekly figure. If the figure varies from payslip to payslip use the more conservative figure Obtain transaction history from the customer s bank account (ANZ or OFI) where: Indicates 3 months continuous salary credits (to be identified as either salary/pay/wages/ transfer) 76

77 Income - Casual / Temporary / Commission only and Contractor Employment The requirement for these types of employment is 3 months with the current employer. (Note; for temporary employment this may include numerous assignments for the employer throughout the 3 months). Evidence required: Casual/ Temporary/Contractor/Commission only Income document required: 1 payslip (not handwritten) showing 3 months YTD Dated within 60 days of the application date. NB. Payslips dated between July & September are not acceptable in isolation and must be supplemented by either a PAYG summary or a Tax agent prepared tax return etc Bonus Income Calculate the YTD from the payslips with the income calculator use 80% LMI applications: Casual employment only is not acceptable there must be a co applicant with permanent employment or self employment 77

78 Income Self Employed 2 Years ABN Most recent years tax return (company and personal within 18 months) ATO NOA for the same year Company financials Add Back of Depreciation The full amount of depreciation can be added back (un-taxed) all business income is considered and business liabilities are expensed. The balance sheet must show a sound capital structure and adequate working capital to meet operating commitment. Max $20k add back for LMI apps Add Back of Interest Can be used in assessment the corresponding liabilities will be expensed Add Back of Super Contributions Can be used in capacity to service however requirement are: Confirmation that contribution is voluntary and can cease at any time. Where income is used it is taxed at the marginal rate. 78

79 Other Rental income 80% of rental accepted for servicing 3 months bank statements where name of real estate agent can be identified Family tax benefits A & B No age limit 100% of the payment can be used Investment income (other than rental): Existing investments Confirm from the last 2 years Personal Tax returns and discount to 75%. Use the average and tax at marginal tax rate. Current dividend statements or equivalent to be obtained to confirm investments still held. Reminder: where a margin lending facility exists the limit must be included in the liabilities and the corresponding expense must be included in the Statement of Position. Internet Statements Now acceptable without the support of an original statement to be acceptable must show the following: Account number Account name Bank name / logo BSB Credits / debits and running balances Reduction of Servicing Margins Servicing sensitivity margin now 1.5% OFI debts 1.5% plus actual rate over 25 years P&I. If remaining term of OFI debt >25 years actual term can be used if evidence provided. Refinance Statements Only require copies of statements for debts being refinanced. If we are not refinancing do not provide. 79

80 Cash Out Policy The following matrix is to assist when evidence is required for applications with a cash out component. This applies where no concerns exist. 80

81 ANZ LMI 95% + LMI to a maximum of 97% Must have an existing ANZ credit facility > 6 months in personal names Overdraft, Home loan, Personal loan, Credit card 90% LVR + LMI to a maximum of 92% For all new clients to ANZ 3 months genuine savings required (5%) when > 85% Personal Savings Term Deposit Sale of property Sale of shares Equity in an existing home Refinances Sale of assets other than real estate with proof of sale Work bonuses or commissions Tax refund Inheritance; held by borrower for minimum of 3 months. Rent, gift or large irregular deposits do not constitute genuine savings Max borrowing up to $1.25mil 81

82 ANZ Valuation Policy Valuation policy change: no valuation needed if contract of sale held and property value is less than $1 MILL (non LMI loans only) Effective today Monday 2nd July, the existing Contract of Sale valuation threshold will increase to $1MILL (from $750, 000) - for non LMI loans only. PLUS the existing Modelled Estimates valuation threshold will increase to $1MILL (from $750, 000) - for non LMI loans only. Did you know? In many cases, a modelled estimate will return a value higher than a full valuation. Valuations held for existing customers can be re-used for new lending applications. Simply send us in a copy from your prior application Valuations have no age restriction and are valid unless the Assessment team stipulates otherwise. Guidelines are outlined below. When do I need to order a valuation for existing customers? You only need to order a new valuation for new or increased lending against an existing security property in one of the following two scenarios: 1. The valuation currently held no longer meets the customer s needs. For example the security property was last valued five years ago and the customer has completed extensive renovations since; OR 2. If all three of the below criteria apply: the existing valuation is more than six months old; AND the Loan to Value Ratio (LVR) is greater than 70% (based on the fair market value on the valuation held); AND the security is within one of these postcodes ANZ Property Profile Report refer attached. 82

83 New Breakfree Package pricing 83

84 Thank you for taking part in our QLD Professional Development Day

85 Lunch pm