Wanna be an Originator Apply here!

As this has often been a fairly open and new industry the regulations are very much self imposed and we have had bodies such as NAMO try regulate the industry but they have not succeeded.


So as business owners we have searched for the best of breed and this is the way i see it:

1. You need to be a 100% peoples person – as people will only do business with you if they trust you and like you.  So APPLY TODAY

2. You need to be extremely confidential – and this must be legally set out and signed before your start as a consultant or originator.

3. The educational aspect most times means

     a. Financial experience – accounting, auditing
     b. Understanding income and expenditure
c. Understanding credit risk management, scoring systems, high and low risk
d. Understanding affordability for now and future as rates rise and change and impact on the client
e. Doing due diligence on a client and understanding 100% their involvement, business, employment and exposure
f. Understanding how to read:
    i. A balance sheet
     ii. Assets and liabilities
     ii. Bank statements

g. Understand how to look for fraudulent activities with employer, employee, business and banking

4. Legally a detailed employment contract together with multiple clauses covering the lenders, the originators and the clients is signed.

5. Skills looked for:

a. Banking experience

b. Any finance experience

c. Credit risk management experience

d. Property type experience

6. Lastly, the banking rules change often, so training is needed all the time and you need to be updated and accurate

One of the key things is to declare the truth to the banks as we abide by the banking code of conduct.

So

The originator warrants that this application and supporting documentation is submitted by the originator on behalf of the applicant/s with the applicant/s knowledge and consent. The originator warrants that the applicant/s have chosen the mortgage originator’s address for delivery of the quotation to the applicant/s. If signed on the applicant/s behalf, the originator warrants that is has been duly authorised by the applicant/s for this purpose. The originator further warrants, to the best of its knowledge, that the documentation / information submitted by the applicant/s in support of this application is not fraudulent, incorrect or misleading.


So this is a serious business..

NEDBANK - A GREAT Balancing Act - to get a Home Loan!!!!

Well I am impressed when I hear a  credit manager tell me what is needed to get a home loan - open policy - nice to see Nedbank .

Three pillars of strength needed folks - thats all so YOU WANT A HOME LOAN then -

RISK - You need to make the bank feel that all the risk is not only on their shoulders but also on yours.  So what do you need for this - A deposit reduces the banks risk and adds yours into the pot, so start saving.  Be a smart finance manager, so manage your accounts and VERY VERY important PAY YOUR ACCOUNTS ON TIME or in ADVANCE.  Never pay late.  Nedbank, like most banks have an internally risk rating of you as a client, so contact your Mortgage Broker and get your risk rating in advance, THEN apply for a mortgage only.

SECURITY - Well no one wants to be left hanging and neither do the banks and this is not particular for Nedbank only.  So make sure what you buy is acceptable for the banks to finance.  If a sectional title flat or apartment get the body corporate financials and make sure the body corporate is in the black (positive cash flow), not to many arrears and outstanding levies, and up to date paid insurance.  Then the bank will feel comfortable as well.  If you have just started a job, make sure you supply your job contract together with a payslip.  Its all about feeling secure. 

Ask your broker.

AFFORDABILITY  - If you want to be declined then dont justify what you can afford.  Remember 30% of your income is the MAXIMUM that the banks will allow you to spend on your home loan.  THATS IT!

DO NOT INFLATE YOUR SALARY AND INCOME! OR DEFLATE YOUR EXPENSES! If it is unrealistic the banks will automatically add an additional 25% to your expenses and once declined on affordability it is very difficult to convince credit managers otherwise.  IT IS TO PROTECT YOU afterall!!!!!!  Ask your mortgage advisor to assist you before you have a bash yourself.

Lovely, easy and A GREAT BALANCING ACT!

Google, Home Loans - How we get them here?

Came across a very interesting article yesterday, but before I post it, let me say I'm all for privatization of the local home loans market!!!!!!

Tight credit markets have been the single biggest factor behind the downturn in the overseas property industry. Lack of home loan finance has killed transaction volumes and large numbers of buyers have had to put their plans on hold, damaging cash flow and putting agents and developers out of business.

One side effect has been a rise in “timewasters”, people who are on the surface committed buyers but without the access to the funds or lines of credit necessary to follow through to sale. Hence the introduction of the NCR. Part of the problem is related to a lack of education and awareness of credit limitations and it is in this area that Google’s home loan service could help improve things.

Google’s home loan comparison service – coming to a country near you!In the US, Google’s new mortgage comparison service is different because it dramatically increases the speed and ease at which buyers can get a quote. Significantly, buyers can search anonymously for the best deal based on their personal circumstances, including their deposit and credit rating.

Google no doubt has global ambitions in this area and it won’t be long before you see the service launched in Europe and Asia. The logical step would be for Google to offer property portals a cut of the commission they are generating in return for integrating the service into their sites.

It may be some time coming but the result should be better educated property buyers and more serious enquiries from portals.When Google launches this home loan service in the UK, I would put my bond (no pun intended) on it being a better service that the current comparison sites like http://www.moneysupermarket.com/. It could be painful for shareholders in these businesses but it might just improve the quality of the sales leads you receive.

AS ALWAYS, Google releases this service offerings in the US and UK before they even onsider expanding the market. What I'd like to now, who is with me on trying to get a servce like this here is South Africa?