CBA accept contract price for VAL

[Brady]

CBA jumping into another little niche space.... well done on making my job easier once again

We have made changes in our Contract of Sale/Valuation process to make things simpler and easier for you and your customers. CHL and VAS will now accept the Contract of Sale for purchase prices no greater than $1,500,000 with loan sizes up to $750,000 and LVR 70% and below.

CHL = CommSee Home Loan

VAS = Valuation Assessment System

 

[MC1]

Still way behind some of the others .... I still find it hard to be impressed by CBA

 

[tobe]

Were you around last time CBA took COS instead of Val Brady?

 

[Corey Batt]

I prefer COS at 90%.

 

[Brady]

Relax boys... they can't make it too easy.

- Application must be a new application involving a property purchase and must be originated via the RBS Channel (Online Home Loans or partial discharges, substitutions are not eligible)
- Maximum aggregated loan amount of $750,000, for the total loan application, where secured by the purchase property
- Maximum 70% LVR for the loan application
- Purchase price of the property must not exceed $1.5 million
- The purchase is conducted at arms length (where both the seller and purchaser act independently of each other and have no connection or relationship to each other)
- The purchase is conducted via an independent real estate agent
- The Contract of Sale must be dated within the last 90 days
- The property has not been purchased "Off the Plan"
- The property must be located within the Postcode listings - refer Acceptance of Contract of Sale Postcodes
- The property must be residential, and must NOT include any of the following property types:

• Vacant land
• Construction (including Kit homes)
• Commercial buildings
• Commercial strata units
• Hotel/Motel apartments
• New House & Land package
• Company title
• Manager residence QLD
• Relocatable homes
• Serviced/Managed apartments
• Property greater than 2 hectares
• Rural farm residence
• Three or more dwellings on the one title
• A Leasehold Estate property (excluding ACT and Perpetual - e.g. Mt Hotham, Falls Creek, Mt Butler, Hamilton Island etc)
• Retirement units or aged restricted developments
• Purpose built student accommodation units
• Property subject to a non-standard lease (e.g. DHA, NRAS etc)

 

[tobe]

Its not really that useful.


Ever had a 70% purchase loan knocked because of a bad val?

 

[Brady]

Its not really that useful.


Ever had a 70% purchase loan knocked because of a bad val?

Yes I have, then passed it on to a broker from this forum who said could be done no problem, still didn't get it approved. Costs the client 6months.

 

[MightyWill]

I recently applied for CBA via mortgage broker with 20% LVR. CBA did a desktop valuation that was 10% under. This was urgently escalated to a full valuation. They had the full valuation postponed from 10:00 in the morn to 14:00 when cooling off ended at 17:00. I went with a different lender. I?ve had my banking with CBA for the past 30 years. I am planning to shut down the 30 year accounts once my loan with the other lender goes through. CBA lost a customer as an outcome.

 

[Brady]

I recently applied for CBA via mortgage broker with 20% LVR. CBA did a desktop valuation that was 10% under. This was urgently escalated to a full valuation. They had the full valuation postponed from 10:00 in the morn to 14:00 when cooling off ended at 17:00. I went with a different lender. I?ve had my banking with CBA for the past 30 years. I am planning to shut down the 30 year accounts once my loan with the other lender goes through. CBA lost a customer as an outcome.

When was the contract signed? When did advise the broker of the purchase? And when was tw finance due?

 

[tobe]

Yes I have, then passed it on to a broker from this forum who said could be done no problem, still didn't get it approved. Costs the client 6months.

Interesting, and that property would have met the requirements for the no val policy? And the clients can meet the offer requirements of informing the lender if there are any defects to the property etc?

 

[Brady]

Interesting, and that property would have met the requirements for the no val policy? And the clients can meet the offer requirements of informing the lender if there are any defects to the property etc?

Yes property that had DA, issue with valuer not wanting to do it as standard val because of DA, even though it should of stacked up without the DA for the price paid. For the interest of my client whilst waiting to hear back from valuer regarding more info I spoke with broker from forum who advise could be done no problem... so I stop fighting the val didn't request different val and sent file to broker. He didn't get it done either.

Happy to go on further or you could accept that the policy has merits that's why it has been implemented.

If could of accepted 70% COS with no val would of saved myself and the other broker time along with making the client some money quicker.

 

[Brady]

Still way behind some of the others .... I still find it hard to be impressed by CBA

Interested in hearing which others and what you aren't impressed with, always keen to take feedback to exec's when they're in town.

 

[Peter_Tersteeg]

There's probably a little more to Brady's example than meets the eye. I've had low LVR valuations declined because there was something unacceptable about the property - there was no laundry, they were using the neighbors which was owned by the same landlord.

The no-valuation policy would have avoided this problem because the bank would never have known that the property was outside their policy. A drive-by valuation would have also worked.

There's a lot of shady things that can be done with this sort of policy if you're cunning, not that I would ever condone such things...

 

[MightyWill]

When was the contract signed? When did advise the broker of the purchase? And when was tw finance due?

Contract signed a couple of weeks ago. My point is that CBA stuffed around with the full valuation by choosing to do it 2 hrs before the cooling off ended. This was just not good enough.

 

[MC1]

Interested in hearing which others and what you aren't impressed with, always keen to take feedback to exec's when they're in town.

80% COS standard with some others.

Nothing ground breaking here.

 

[Brady]

Contract signed a couple of weeks ago. My point is that CBA stuffed around with the full valuation by choosing to do it 2 hrs before the cooling off ended. This was just not good enough.

How long after from when you signed the contract til you advised the broker of the purchase. It doesn't take 2 weeks to organise a valuation unless there is issues with the vendor/REA providing access. Even if an desktop is completed then a fullshort form is required it shouldn't take that long.

 

[Brady]

80% COS standard with some others.

Nothing ground breaking here.

Interested to know which other banks provide this I know others do, but not sure which one do. Can you tell me which ones do, I'm sure it would be useful for the forum to know.

You said CBA doesn't impress you, I would assume 10% LVR isn't the problem... what is.

 

[tobe]

I doubt DA inflated contract prices is what CBA had in mind with this policy. Id say it would be excluded from the no val policy somewhere. If not specifically, in spirit. This is most likely evidenced by the broker not being able to place the deal with another lender who do have the no val policy.

I guess we will never know.

Last time CBA had this policy there was quite a cost to them in terms of fraud etc. Im surprised they are looking at it again.....

 

[Brady]

I doubt DA inflated contract prices is what CBA had in mind with this policy. Id say it would be excluded from the no val policy somewhere. If not specifically, in spirit. This is most likely evidenced by the broker not being able to place the deal with another lender who do have the no val policy.

I guess we will never know.

Last time CBA had this policy there was quite a cost to them in terms of fraud etc. Im surprised they are looking at it again.....

Just posted most of the policy, doesn't mention excluding DA anywhere. Can't see why it wouldn't be a perfect match for properties with development potential. 70% of COS if property has been advertised by an agent (arms length), why wouldn't it be in the spirit of the policy. Many times I've spoken direct with valuers who have said this property is worth X amount for valuation purposes but if it was to go to auction tomorrow it would see for Y.

Obviously there is need. I've mentioned it would of helped me, so has Pete... MightWill also wouldn't of had any issues possibly if PP was <$1.5M also don't think he would of had issues if he went direct to a decent CBA banker instead of broker by the sounds there was a delay in time and thats where a banker can beat a broker (with CBA).

 

[D.T.]

Yes I have, then passed it on to a broker from this forum who said could be done no problem, still didn't get it approved. Costs the client 6months.

Them damn brokers who are all talk and no action and have no idea about product selection. I bet he forgot to return contact as well?