Listed non-bank lender Resimac has tightened its loan assessment requirements for Victorian borrowers as a result of the economic havoc caused by COVID-19.
In a notification to mortgage brokers on Wednesday, Resimac said it now requires “the most recent” documentary evidence confirming that loan applicants continue to earn income.
Self-employed applicants in Victoria seeking full documentation or Alt Doc loans must furnish their most recent 30-day business banking statements before their loans can be assessed.
Resimac previously only required business owners to attach a copy of their most recent quarterly BAS statement with loan applications.
“Given the ongoing restrictions in Victoria and the recently released 'roadmap' detailing when these restrictions are likely to be eased, additional documentation and information should be submitted in support of applications due to the potential impact these restrictions are having,” Resimac’s head of distribution Daniel Carde told brokers in the notification.
“For PAYG applicants employed in Victoria, one payslip must be for the most recent pay period as per the applicant’s pay cycle – i.e. if paid fortnightly, the most recent payslip should be no more than 14 days old.
“Should the bank statements or payslips reveal a change from normal conditions, detailed notes should be provided that cover the change and the applicant’s ability to make their loan repayments on an ongoing basis.”
The new requirements constitute a hardening of Resimac’s scrutiny of Victorian applicants since it moved in late July to force high LVR borrowers to furnish more evidence to verify their living expenses and income status.
In a separate announcement on Wednesday, Resimac said that it would waive valuation fees for some new home borrowers who apply for its Specialist-branded full documentation and Alt-Doc loan products.
Resimac’s ASX-listed scrip closed up 2 cents to A$1.34.