Branching Out - Resimac

ot for all
Brokers are in a prime position to help the specialist and
non‑conforming borrower access capital
Since the introduction of
NCCP regulation, some brokers
have steered clear of the specialist
and non-conforming sector due
to the more stringent rules that
now apply.
But with mainstream lenders
often unable to look outside the
box, brokers still have a huge
opportunity to capitalise on this
area of the market.
WHO ARE THEY?
Specialist and non-conforming
borrowers account for
approximately five per cent of
the lending market, according
to RESIMAC’s chief operating
officer, Allan Savins.
The market was thriving
before the global financial crisis
(GFC). But with specialist
and non-conforming lenders
AUSTRALIAN CREDIT LICENCE 247283
subsequently ceding ground to
the majors, and increasingly tight
credit criteria, many brokers are no
longer sure how to target or service
this market.
The borrowers, however, are
still out there.
“Essentially, any borrower
that doesn’t fit traditional lending
guidelines falls into this category,”
says Mr Savins.
Based on that broad definition,
it is clear the market is incredibly
diverse – and doesn’t comprise
only credit-impaired borrowers.
Specialist and non-conforming
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1300 RESIMAC.
borrowers include the selfemployed,
those who have only
been employed short-term,
“There’s nothing wrong with
borrowers that have adverse credit,
provided we understand why”
Solutions from the leaders in Specialist Lending.
borrowers who have been declined
lender’s mortgage insurance, new
immigrants with no Australian
borrowing record and, finally, the
credit-impaired.
Mr Savins emphasises,
however, there is a clear difference
between those with a credit default
who have experienced a ‘life
event’ – sickness, accident, job
loss, small business failure, divorce
etc – and those who are habitual,
systemic defaulters.
Breaking new ground / 33