Branching Out - Resimac

oker profile
Supporting
the non-conformers
When it comes to collecting information from his non-conforming
loan clients, ausco trading’s ray ethell isn’t afraid to dig deep
What kind of loans do
you Write?
My focus is on low doc and creditimpaired
lending for residential
and commercial properties.
Why did you decide to
Write these loans?
As one of the first brokerages with
an internet presence, we found the
majority of the leads we received
were in the non-conforming area.
Instead of ignoring this we saw it
as an opportunity to specialise in
the area, so we set up a dedicated
website, researched specialised
funders and have developed our
expertise over the last 12 years.
What are the benefits?
Being in the non-conforming
area means extra income and
the opportunity to refinance the
client into a prime loan after credit
issues are cleared up. Furthermore,
pre-GFC, a client would have been
snapped up by both banks and
mortgage insurers but now they’re
candidates for non-conforming
which means we’re writing far
more loans.
16 / branching out
What advice Would you
pass on to brokers?
When it comes to the creditimpaired,
make sure you get the
full story from the borrower – what
happened in their life to create
their credit problems and have
they resolved these issues now?
Obtain a credit report for the client
– don’t just rely on the borrower’s
version of events so you can make
an accurate assessment of their
position – and for low doc loans,
talk to their accountant to verify
their income status. Be prepared
to say no if you have any doubts.
What factors determine
success in this area?
Foremost, brokers need to access
a non-bank lender that offers
several specialist funding lines.
It’s crucial that brokers are able
to source borrower leads, too by
establishing referral arrangements
or by searching their current
database. Obviously, once the
broker has met with the client,
they need to be in a position to
provide the lender with as much
information about the potential
borrower as possible to maximise
the chances of loan settlement.
What does the
future hold?
As credit tightens, prime
lenders will predominately be
chasing the prime area of the
market, which will squeeze
many more borrowers into the
non-conforming sector. This will
certainly open up opportunities
for brokers.
“When it comes to the
credit-impaired, make sure
you get the full story from
the borrower”