I Hate Nab!!!

[Iggy_Type_R]

I cannot beleive the shit that this f*cking bank has pulled!!! I was supposed to settle tommorow on a property, and everything looked fine. Today my fin. broker got a call from them telling me they won't fund me due to "credit history with NAB".

I had a credit card lost/stolen over a year ago. I had auto debit to that card, which resulted in a lot of shit going thru it that shouldnt have. I paid it off, but they charged me TWICE for it... so I had a 7month dispute with them, at the end of which I told them I would pay it off if they took it off my record.

Guess what?! I kepy my side of the bargain, but they decided to make sure I could never get funding with them!
#$)*&#@$(*&#@$(*&#@$(*#@&$(*#@&$(*#@&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[h8dk97]

Hi Iggy_Type_R,

I had some frustrating experiences with NAB as well, I was about as pissed off as you are. What I found was that the only way you can resolve issues with bank is to calmly follow the formal procedure - I complained about my personal banker to their manager, when I saw that it doesn't help I called their internal complaints department, then when I told them I'm writing a letter to the banking ombudsman everything got fixed.
I'm not sure if this is applicable in your case but just wanted to let you know.

 

[Iggy_Type_R]

Originally posted by h8dk97
Hi Iggy_Type_R,

I had some frustrating experiences with NAB as well, I was about as pissed off as you are. What I found was that the only way you can resolve issues with bank is to calmly follow the formal procedure - I complained about my personal banker to their manager, when I saw that it doesn't help I called their internal complaints department, then when I told them I'm writing a letter to the banking ombudsman everything got fixed.
I'm not sure if this is applicable in your case but just wanted to let you know.

Thanks for the info. I will call them right now and tell them I am putting the whole story to the banking ombudsman and they can go FVCK THEMSELVES!!!

I still need $$$ by TOMMOROW!

 

[Glenn]

I had a problem with which bank a couple of weeks ago....had all the docs signed and submitted 10 days prior to settlement date, asked them "IS THERE ANYTHING ELSE?"...they said NOOOO, everthing is FIIIIINE! The night before settlement, we receive one of the documents in the mail from the bank....the witness (me) was a party to the loan and can't be a witness....bugger...wish you'd told me last week! Anyway, settlement took place 3 days later and in 20 years nobody will remember/care

Glenn

 

[manny]

Now that we have had a go at the banks... someone I know works at one of the BIG 4 banks... interstingly enough, their branch manager has been visiting &/or calling local solicitors & accountants indicating that they would give them $300-$400 per referral they give them that takes out a loan (residential, investment or commercial)...

Apparently one of the local solicitors referred a client to get their loan with them & received $400 cash (for a loan of the vicinity of $200k)... quite an interesting approach taken by a BIG 4 bank... Looks like they are picking up some of the strategies used by brokers...

Cheers,

MannyB.

 

[Kevmeister]

So much for a solicitor or accountant acting in *your* best interest.

That's just BS and, if I found out, I would be likely to refer the matter to professional body and find out where the legalities of that stand, unless of course they disclosed that information to me (a'la Financial Adviser).

Sets a dangerous precedent I think.

 

[Jas]

Originally posted by Iggy_Type_R
I still need $$$ by TOMMOROW!

Get in contact with the vendor RIGHT NOW and tell them what's happened. (calm down first thou)

Get an extension, and try one of the littler ones. Get an 'over the phone' quote and explain the whole situation to them.

I reckon the chances of a settlement going smoothly are smaller than the chance of winning lotto... Mine have never been easy

Jas

 

[manny]

Hi Kev,

well I brought it up with our resident Mortgage Broker (Rolf) & he wasn't surprised that banks are paying for business...

I am like you, if my solicitor was to get money for referring me to a bank, I'd like to know about it (ie. you know what cut your financial broker gets out of you prior to making a committment)... as it doesn't sound ethical taking the cash behind your back (on top of not being a mortgage broker, so haven't given you any financial/banking advice, just referred you)...

Cheers,

MannyB.

 

[Waverlybay]

Hi Manny

I am also aware of banks offering rebates for loan referrals. Its gotten to a stage now where some banks will pay the borrower a rebate for merely taking out a loan with them. Eg - my NAB personal banker has offered to pay me 0.4% of the loan if i bypass my broker for future loan applications. A similiar rebate will of course apply if i refer loans directly to NAB. Anyone else picking up a similiar rebate? I have other investor mates with similiar arrangements at westpac.

NAB's rationale is that if they are going to pay a rebate... why not pay it straight to the customer .... and incentivise the customer to do more loans with them and/or encourage more referrals?

I have no intention of "by passing" my broker as I regard him as a business partner who adds real value beyond being an administrative loan processing clerk.

Cheers
Waverly

 

[antinahat]

If memory serves me correct; solicitors may receive some form of benefit by referring a client to some third party. However....there is an overriding duty not to prefer the solicitor's personal interests to that of the client. Commissions are specifically dealt with in various regulations governing solicitors ; bottom line being - full disclosure to client, no bias in favour of third party, not acting under influence of third party.

 

[NigelW]

Originally posted by Iggy_Type_R
I cannot beleive the shit that this f*cking bank has pulled!!!

Probably not the time for levity...but doesn't NAB stand for "Need Another Bank"?

i heard that joke muttered last week during a desperate hour in a $93,000,000 deal...so don't get too discouraged banks can aggravate everyone

Hang in there Iggy. with some consideration from the vendor and some fast footwork you can still pull this one off.

 

[Ross Sneddon]

Hi Iggy

It is regrettable but true to say that as a broker I have found that all banks will resort to any number of "tricks" to get the deal and for the life of me, I don't know why. There are other ways.

Increasingly, more and more loans, Australia wide, are being brokered and lodged by Mortgage Brokers. These are people who must at least have a CCC rating (Consumer Credit Code under the State Government) specifically with each bank. In my small Group we also have at least several units each of the Diploma of Financial Planning and a Certificate or Diploma in Mortgage Lending and Industry Institute accreditation.

If the banks seek to gain loans through Solicitors or Financial Planners etc., that is legal although it often undercuts the Broker, but that commission MUST be declared clearly and openly to the client or the commission passed directly to the client. To do otherwise is not legal. A clear paper trail must be evident.

I would urge potential lenders to find a mortgage broker that they feel comfortable with and can work with. The broker can BUT should not charge any service fee but should only be paid the standard rate by the bank for services rendered. Most banks will pay a fee very similar to the next bank so your broker should not be induced to encourage a particular type of loan merely for the financial reward to him/her. There is also ethics.

I know that some investment speakers say that you should front your own bank and bank manager, build a relationship etc., and argue for your own loan. This isn't really wise and is mostly impossible. Almost all loans are considered, granted or declined at a central location in the bank. There are almost no more bank managers left these days and they do not have the authority to "pass a loan application" in your favour. It just cannot happen anymore.

A full scheduled broker has the opportunity to consider several hundred loans and recommend two or three for your consideration. An individual bank cannot do this.

The big four are increasingly under threat from the second tier banks and non bank lenders and don't like this competition. They believe that this is their patch. Yet all too often many of these banks and institutions give shocking service or no service at all and wonder why they are losing their slice of the pie.

This doesn't help you in one day Iggy. My suggestion is to start as high up the ladder as you can and keep working upwards until you get the satisfaction you deserve. Don't lose your cool as the individual you speak with can slow the process down as much as they like. There are some good people who are bankers, finding them is sometimes hard.

Regards

Ross

 

[Aceyducey]

Iggy,

Good luck on getting a lender ASAP. I agree with Jas that you need to get an on-the-phone approval from one of the smaller players...many of them can move VERY fast when there is the potential of repeat business.

An aside on this topic - IMHO, the entire mortgage market is starting to change gears & become more about market share than profit.

This may mean that banks are seeing the home-ownership mortgage market beginning to dry up & reflect an expectation of the accelerated slowdown in house prices & possibly even falls in home values in some areas.

I expect to see lots of good competition between lenders in the next year & some great rates for investors. Potentially there will also be more good deals coming on the market for investors (and possibly less investors if the share market rallies & is providing higher *short-term* returns.

Cheers,

Aceyducey

 

[noddy]

Hi Iggy,

If it was a regulated loan, you could have a go at suing them for missrepresenting that they would fund you in the first place.

My (poor) understanding is that unconditional loan approval happens AFTER credit checking and as such, you should never have been given the OK. Simple contract law stuff. You pay application fee, fill out the forms, they do CRAA check, they give the OK; then they settle. If they gave the OK...sue them!!! At least advise them you will sue them for all out-of-pocket expenses, plus stress and worry ($30K for stress these days!!)

In regards to settlement, if you bought subject-to-finance; and the bank is now saying no, you may be able to avoid buying if it is getting too difficult. Let the Vendor sue the Bank for incorrectly advising you had finance approval.

Is the old card problem now on your CRAA?..If so, alternate finance may be difficult.

If you still wish to purchase, advise the Vendor the bank is not currently ready to settle and request a deffereal of settlement for 2 weeks. Speak to some brokers as there are lenders who can turnaround loans in 2 weeks.


As a general rule, step 1 of any loan is to get your own CRAA check as unexpected or unexplained entries cause all sorts of grief. If the NAB had agreed to a deal with you, did you get it in writing?

Wishing you all the best!!


Noddy.

 

[Ross Sneddon]

Whoa there

Close the gate BEFORE the horse bolts.

Irrespective whether the loan is a regulated or unregulated loan, I suggest you slow down a bit. Banks are BIG and have been around for a long time. They have clout and if they hit you, it can hurt.

Before you threaten them with legal action, think carefully, seek legal advice and then think again.

A bank does more than just check your CRAA and see that you have spelled your own name correctly. When thay say that they would like to give you a loan they mostly say "subject to" and then list a heap of ways they can stop the proceedure. It also lulls you into a false sense of security and you don't speak to one of their opposition lenders, they hope.

In law, they are cunning enough to be able to stop the loan one second before settlement and there is little you can do about it. I don't like it either but banks hold the whip hand. Check your own loan contract. They can also end the deal almost as fast by simply calling in the loan with maybe only 30 days notice, and they do not have to give a reason.

If you have a CRAA problem, try before you start, to get it rectified. If it can't be rectified, then declare it upfront to the bank with the loan application and they won't get a fright later on. A typical example is a mobile phone account. If you have defaulted, even through no fault of your own, it will be on the CRAA in 90 days max. Give them a full explanation and how it has been fixed / is being fixed and you are better off.

Now if the CRAA is causing a problem, look to those second tier lenders or non bank lenders first. There are a number who will accept your application despite a bad CRAA record, even a bankruptcy. Maybe for a little higher interest rate but it is all tax deductible.

None of the above by implication necesarily applies to anyone in particular but for Iggy I suggest you start with your mortgage broker and as far up the ladder as possible ..... well I said all that earlier.

Also start looking to get a delay on settlement and start looking for another lender. Banks are notoriously hard to get to change their minds once it is made up.

All the best Iggy

Regards

Ross

 

[Lissy]

What I want to know is - how do you get a bank to want more of your business??? They seem more interested in turning me down nowadays - too many loans, too rent reliant, serviceability issues.... I am so fed up with hearing all the usual excuses.
Maybe I should send a few personal bankers a box of choccies for Christmas and see if it makes them like me.

 

[natmarie73]

Banks also keep their own records of someone's credit rating or payment history eg - slow, unsatisfactory, good, excellent etc. Even if the CRAA check is clear, a bank can still make lending decisions on their own records of the customer's payment history.

 

[Jas]

Originally posted by Lissy
Maybe I should send a few personal bankers a box of choccies for Christmas and see if it makes them like me.

Maybe you should up the stakes a bit. In chatting with Rick Otten last Xmas, he mentioned that he gives TV sets to his favourite real estate agents...

Jas

 

[asy]

Originally posted by Jas
Maybe you should up the stakes a bit. I chatting with Rick Otten last Xmas, he mentioned that he gives TV sets to his favourite real estate agents...

Jas

RICK!!!

HERE I AM RICK!!!

OVER HERE!!!!!

REMEMBER ME, your FAVOURITE real estate agent??

asy

 

[Ross Sneddon]

Lissy

Believe me, you are a number. That's all. Individuals in the bank may develop a relationship with you and you with them but that is all. The individual may appreciate the box of chocs but they cannot do anything for you loanwise.

If they learn that you are looking for a new loan, the bank may come after you but it is unusual or it may be a general mailout.

Once again, I know some seminar people will tell you to develop a relationship with your bank manager in order to get a better loan and all that, but almost without exception it is a waste of time and effort.

Let's take the Big Four. All loans are assessed in an assessment centre. One only in Australia for all loans for each bank. Example is that if you lodge a loan anywhere with say Westpac, the loan application will be sent to Adelaids for assessment. ANZ goes to MEL, CBA and NAB are assessed in SYD. One person will assess the first part, a second the next part, a third a third part and so on. Even as a broker, if you try and assess how far the application has progressed or if everything is OK, you get a 1800 rotational number and answering system and the person who answers is just an assessor. The assessors all work in one great big assessment centre and anonymity is their protection.

Brokers also have Customer Relationship Managers who have a separate number and better access but it is almost as hard to get hold of them as it is to get manure from a rocking horse.

Lissy, build a relationship with a Mortgage Broker. They do have more knowledge and can often find a way to help things along a little. I am pushing my own barrow to some extent here but you will get agro trying to build bank relationships and buy a lot of chocs. Talk with your broker and they may recommend another bank to avoid the knockbacks you are receiveing. Once a bank has put a black mark against your name, they tend to be guided by that black mark. The next assessor will not want to go against an earlier decision unless with very good reason. The next bank won't know.

Regards

Ross