THE MORE WE DIG, THE CLOSER WE GET TO THE RC
These Notes from an insider tracking low docs after the GFC –
postcode identifies insured and uninsured low-docs........
S&P gave the nod to AOFM purchase of low docs...
banks were/are approving low docs as commercial loans stitching elderly people up
as "self employed" creating the ABN FOR A DAY SCANDAL.
"Banks playing with ticks in boxes to make the deal fit!"
Bankers were targeting POSTCODES - people who are older and owned their own
home.
Of course all of the low doc loans applications are subject to a particular
lender’s credit criteria.
Commercial Low Doc Loans - Wednesday, 10 August 2011
Everyone is now aware low doc loans are definitely harder to get than a few years ago. Having said that, as people become used to the new credit environment, we are now seeing customers start to offer BAS statements. This didn’t occur previously. It seems people are now being conditioned by the banks that more paperwork is required when applying for low doc loans. The normal options are either Accountants letter, BAS statements, or trading statements.
This extra paperwork applies to residential property low doc loans which are
governed by the NCCP. In regards to commercial low doc loans, in many cases we
don’t require all this extra paperwork.
We have recently been offered access to funding large low doc commercial loans with a minimum loan size of $3m. As well as the large low doc commercial loans there is now development finance becoming available for deals that the banks wont do.
Low Doc Loans with no BAS - Wednesday, 13 July 2011,
Low Doc Loans with No BAS and no accountants letter are still
available
What is the future for Low Doc Home Loans? - Friday, 11 September 2009
Low Doc Loans have been around for many years. Previously during 1960's to
1990's low doc loans were done through solicitors funds at around 66%.
Over time, the banks then started to slowly start to enter this space.
In 2005, the RBA commented about Low Doc Loans. For the full article.
With the beginning of the credit crisis in 2008, there was a general tightening of lending across the board. Much of this was to do with bad credit. There has been confusion between bad credit and Low Doc Loans. In Australia they are different. Most Low Doc loans in Australia are for self employed with minimal paperwork and are normally clean credit.
Standard & Poor’s in October 2009, has indicated Low Doc Loans in Australia
are not a problem. Standard & Poor’s has backed the government’s decision to
direct the Australia Office of Financial Management to invest in residential
mortgage backed securities with a higher proportion of small business loans
when it invests the additional $8 billion the government has allocated to
support new RMBS issues. For the full article. Low Doc Loans are still being
written, but they change as the credit markets change. With the norm for the banks now being 60%, Low Doc Loans have effectively gone full circle.
Low Doc Loans without BAS at 80% are still possible, however they will be
priced according to risk.
With this in mind, even though lending for Low Doc Loans has tightened, with the credit markets starting to free up again, over time, Low Doc lending will also start to free up again as well. If you want to know the future for Low Doc Loans, one guide is to look at the general credit markets.
When things are perceived as bad, low doc lending will be tight. When things
are perceived as optimistic, low doc lending will be more liberal. Since writing
this post in late 2009, in March 2010 Macquarie has already returned to the
low doc market. This is an indication of where we are heading and it has
happened quite quickly. Macquarie Low Doc Loans
July 2011 Bankwest low doc loans - Wednesday, 28 April 2010,
Effective Close of business 30 April 2010 Bankwest Low Doc Home Loans will
be withdrawn from sale.
Bankwest will still not do refinances with their Low Doc Loan product, however we do have other lenders that will refinance Low Doc Loans up to 80% of the value.
Low Doc Loans mortgage insurance postcodes
Tuesday, 20 April 2010,
Low Doc loans are historically divided into two categories.
Low Doc Loans without mortgage insurance and low doc loans that are
mortgage insured.
Low Doc Construction Loans
Thursday, 11 March 2010,
Low doc Construction loans are still available for building residential homes in major metropolitan areas.
An interest only low doc loan during construction........
For both of these types of low doc loan need 2 years ABN and registered for GST.
No BAS or trading statements required.......
Building will be inspected at each stage of progressive drawdowns.
CBA Low Doc Loans increase .25% - Tuesday, 2 March 2010,
As a footnote to the above, ANZ Low Doc Loans are no longer being done at 80%. CBA and many of the major banks are now requiring BAS statements with their 80% low doc loans.
Given this need for BAS is this really a low doc loan?
Rural Low Doc Loans - Monday, 15 February 2010
Rural low doc loans now available for loans that have an investment purpose.
Generally for a year only, so there needs to be a clear exit strategy so the loan
can be paid back.
Low Doc Business Loans - Thursday, 28 January 2010
Low Doc Business Loans may be available for applicants that want to purchase a new business.
The low doc loan must be secured against an investment property.
If the total lending does not exceed 65% there may be no need for ABN or
GST registration as long as applicant has a strong asset position.
Difference between Low Doc Loans and No Doc Loans - Saturday, 19 December 2009,
Low Doc Loans can be on either owner occupied, or investment properties...No
Doc Loans.must be on investment properties....
No Doc Loans are normally short term up to 3 years, however in some cases it
is possible to go out to 25 years.
Low Doc Loans to return through AOFM - Tuesday, 8 December 2009,
Low Doc Loans may be back with AOFM investment. Up to 10 per cent of
loans funded under the next planned round of $8 billion in investment may be
low doc, though still secured over the borrower’s home…
Full article from The Sheet
Positive Credit Reporting - Thursday, 22 October 2009
In early October, Senator Joe Ludwig, Special Minister of State, announced proposed reforms to the Privacy Act and Regulations. An exposure draft of the legislation will not be available until early 2010 ....
Until responsible lending obligations under the NCCP Bill begin in January,
2011, credit repayment history data won’t be available.
Low Doc Loans still available without BAS
Wednesday, 14 October 2009
Of course all of the low doc loans applications are subject to a particular
lender’s credit criteria.