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Westpac has started its resubmission process for brokers starting last Monday (26 February), as part of what it calls responsible lending changes.
Its subsidiary banks – Bank of Melbourne, BankSA, and St George – have all made the same announcement and started using the process.
From Monday, brokers who make changes to a loan application that has been submitted to Westpac will have to resubmit it. They will have to make their resubmission in AOL or through their aggregator software.
The bank said it we will no longer be able to accept emails containing R&O or loan structural changes with the new process in place.
“Westpac is committed to responsible lending and ensuring that our loans fit the needs and life situations of our customers,” it said in a note to brokers.
As Australian Broker reported two weeks ago, Westpac introduced strict tests of residential property borrowers' current and future capacities to repay their loans.
The change was said to be intended to identify scenarios that might affect borrowers' capacity to pay back their loans. These include having dependents with special needs that might require borrowers to spend on long-term care and treatment.
Earlier in February, the bank amended its borrowing terms, including allowing the use of desktop valuations only for a maximum LVR of 90%.
