We have recently seen a significant percentage of complaints coming through that relate to fixed rate loans, particularly in situations where brokers have not offered their client a Rate Lock.
Whilst low fixed rates are now a distant memory, some of these complaints stem from applications lodged a considerably long time ago. This has resulted in brokers paying out substantial sums where they haven’t discussed a rate lock and/or the fixed rate at settlement is higher than the documented rate.
Make sure you are covering all the options and variables with your clients throughout the application process and add the discussion points to your broker notes. You need to ensure that your clients understand the implications of signing or not signing something like a rate lock.
If you have a process or checklist that you refer to or work through, ensure items such as rate locks are included so that they are not missed or forgotten.
If you don’t have a documented workflow, process or checklist, please have a chat with your Partnership Manager.
Plan for all scenarios and situations and your future self with thank you!