Is the writing on the wall for handwritten loan apps?
Handwritten loan applications may be on the way out for ANZ but are any of the other banks rushing to follow suit?
Thursday, June 15th 2017, 11:29AM
by Miriam Bell
From September 1, ANZ will no longer accept handwritten loan applications, or those that are not typed, from brokers.
The rule change will only apply to brokers because non-broker home loans applications are done with the help of an ANZ staff member.
An ANZ spokesperson said it was motivated by the fact that handwritten information can be difficult to decipher, which meant decreased service levels and increased risk of incorrect details being recorded.
However, it seems that the other major banks are not rushing to follow suit.
A BNZ spokesperson said that brokers have to lodge loan applications through BNZ’s electronic portal.
This means that if they do have handwritten forms they have to re-enter that information into the system anyway.
But BNZ doesn’t have a specific rule about not accepting handwritten applications, she added.
Likewise, an ASB spokesperson said they don't have a specific rule about not accepting handwritten applications from brokers.
“But all applications do have to meet a high quality standard and if they don’t meet our requirements they will be returned to the broker to re-do and re-submit.”
A Westpac spokesperson said Westpac has no plans to change its current system, while a Kiwibank spokesperson said they don’t use brokers, which means that the issue is not relevant to them.
Among brokers the rule change has elicited some discontent.
The Mortgage Supply Company’s David Windler said that, in his experience, most banks are pushing back on handwritten applications.
This was on the basis that it meant they have to rekey the information and that is greater potential for mistakes.
But most brokers would be submitting information electronically so ANZ’s rule change seems based on the lowest common denominator, he said.
“It is not that hard to complete an application form correctly. You might get the odd occasion when something handwritten is submitted but it shouldn’t be a train smash.”
He had no inkling that the other banks would be following ANZ’s move but said that banks were expecting brokers to fill out more and more forms.
“It doesn’t make it any easier to write business. And that’s a common theme really.”
| « Hundreds of would-be advisers sign up | Verdict in on this week's OCR call » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
