Morning Briefing: CUA updates lending policies

CUA updates lending policies to streamline mortgage applications... 40% of Australians don't use smartphone to make payments...

CUA updates lending policies
Member-owned financial services provider CUA has made changes to its lending policies to save time and reduce duplication in the loan process. 

Changes apply to all home loan applications processed by CUA, effective 17 October 2016.

CUA’s national broker manager Natasha Kelso said, “We expect these changes to significantly improve the member experience for home buyers taking out a loan through any CUA channel – whether that is in a branch, with a mobile lender, through our CUA Direct member service centre or via a mortgage broker. 

“We are formalising a number of policies where we previously dealt with applications on a case-by-case basis, while other outdated lending policies are being brought into line with common industry standards.”

Kelso said CUA had listened to feedback from members, its lenders and brokers as part of a broad review of lending policy.

Some of the policy changes include raising LVR for home loan and investor refinancing applications to 95%, up from 90% currently; taking a more flexible approach for members with a home loan, during periods of parental leave;and accepting granny flats and additional dwellings (maximum four residential units/ dwellings on a single title) as acceptable security against a loan, as well as recognising granny flat rental income.

40% of Australians don't use smartphone to make payments
According to finder.com.au, two in five Aussies have trust issues with their smartphone regarding money matters, avoiding the purchase of goods or paying bills through a smartphone.

Figures show only 7% of smartphone users feel comfortable using an app for transactions over $1,000

Bessie Hassan, money expert at finder.com.au, says the results are surprising. “We can manage many aspects of our lives through mobile app these days but some of us are still a little cautious when it comes to money and the online world,” she says.

“Only 14% of respondents would be happy to process a transaction of any amount using their smartphone."