Recent reporting on the enquiries required to complete your Responsible Lending obligations with a prospective buyer has been 'eye opening'. Can We Make it Easier? We recognise that a software solution to assist with these obligations is required, just as much by Vendor Financiers as it is by Mortgage Brokers. To this end, we've been [...]
Read MoreIn August last year I put out a VFI News entitled Can I Sell to a Non Resident? Crackdown Details This week The Weekend Australian contained an article entitled ‘Hit on foreign property buyers’. In part it went: ‘Real estate agents and others who assist in breaches of the laws, to apply from December 1, [...]
Read MoreYesterday's article, by Tony Cordato, in the legal fraternity’s web site, Lexology, is entitled, 'ASIC cracks down on irresponsible lending practice for consumer credit'. A Very Clear Warning Tony starts the article with a clear warning to all those in the consumer credit industry, including the Vendor Finance Industry. That warning goes: 'It’s easy to [...]
Read MoreLast Thursday night I was asked to give a talk on Vendor Finance to a support group for students of a real estate investment educator. What a great group of positive people :) An Interesting Presentation The support group co-ordinator, also asked John Collignon, from Sequoia Asset Management Pty Ltd, to give a talk at [...]
Read MoreDon’t miss this exciting opportunity to network with Vendor Finance Professionals in a truly inclusive, community atmosphere. The Finance Brokers Association of Australia (FBAA) and its Vendor Finance Steering Committee would like to announce its Vendor Finance Meeting dates for the remainder of 2015: Sydney - Wednesday 25th March 2015 – Thursday 23nd July 2015 [...]
Read MoreI was just thinking what a different situation we may have had if our Industry had not split into factions 4 or 5 years ago. How may it have looked if we had concentrated on building a united Industry that spent its time building a strong 'professional' association instead of fighting each other. Thereby allowing [...]
Read MoreThat spotlight the ‘powers that be’ are shining on Lease Option (RTB’s) isn’t dimming. Two recent issues have arisen in the courts/tribunals (courts) and they revolve around the level of rent you can charge in a RTB and the potential danger of not getting your buyer to get independent legal advice. RTB’s Back Then Back [...]
Read MoreNot being one to keep away from contentious issues here are a couple of opinions that should generate strong responses right across the various experience levels of fellow vendor financiers. Only One Technique was Available Back Then When we started out, the only vendor finance technique we were taught was the 20 to 30 year [...]
Read MoreI hope you and yours had a wonderful Festive Season. Considering the length of time since the last VFI News you can probably tell we’ve been having a great time and finding it a bit hard getting out of summer holiday mode :) The purpose of this issue is to bring your attention to the [...]
Read MoreA VFI News back in December outlined what ASIC requires you to include in a credit contract Statement and how often you must send these Statements to your buyers (borrowers). This issue also had a link to the Form 12 ASIC requires you to send with each credit contract Default Notice you send out. ASIC [...]
Read MoreIn an edition of VFI News, I guessed the road to full regulatory oversight of property Rent To Buys (RTB’s) would start with an amendment to Section 9 of the National Credit Code. While such an amendment may still occur, I was wrong. A surprising new oversight mechanism of RTB’s has just come into being. [...]
Read MoreTimes have changed for the Vendor Finance Industry. The options available to us now, when we receive a complaint under the National Credit Code (NCC), are vastly different from what was available only a year ago. The Scary Old Picture Prior to the Finance Brokers Association of Australia (FBAA) taking on representation of our Industry, [...]
Read MoreIn an earlier edition of VFI News entitled The Writing’s On The Wall, I referred to situations where you as a vendor financier, don’t own the property, i.e. you’re ‘standing in the middle’, helping a seller, sell to a buyer using vendor finance. The situation regarding Licensing is very different if you are the owner [...]
Read MoreI thought I’d share some great comments and suggestions I received last week, about a bunch of different aspects of our Industry. These comments & suggestions came from an email chat with fellow vendor financier Greg Coggiola and I’d like to thank Greg for his permission to publish our discussions. Greg. This [the news about [...]
Read MoreThis issue of the VFI News is designed to keep all those operating and interested in vendor finance up to date with the ongoing round of talks between the FBAA Vendor Finance Steering Committee (FBAA VFSC) and various regulatory authorities, consumer groups and influential stakeholders. Our First Consumer Group Meeting Peter White, the CEO of [...]
Read MoreIn answer to the question, Is The Deposit Builder a Credit Contract, right now I’ve got to say I don’t know! I’ve read the legal argument saying that, in its current format, the Deposit Builder is exempted by the i (NCCP) and is therefore not a Credit Contract. On the other hand I’ve also read counter [...]
Read MoreAn Australian Credit Licence (ACL) can give you two possible authorisations. They are: ‘engage in credit activities as a credit provider’ and ‘engage in credit activities other than as a credit provider’. ASIC gives ACL holders either authorisation and, in some cases, both. ACL holders are only allowed to authorise their Credit Representatives to ‘engage [...]
Read MoreOver the last couple of months the VFA Executive Committee and the FBAA Vendor Finance Steering Committee (FBAA VFSC) have been discussing representation of the Vendor Finance Industry in Australia. During these discussions the FBAA VFSC presented some ideas to the VFA Executive Committee. Here's a copy of the paper. The voting proposal mentioned in this [...]
Read MoreI'd like to thank Felicity Heffernan for her permission to publish the following article. With the arrival of the new Vendor Finance Professional Indemnity Insurance policy, this article is particularly relevant to our Industry. It should also be remembered that a lot of NSW based vendor financiers must have PI Insurance for their NSW real [...]
Read MoreWe usually break the vendor finance selling process down into 6 convenient processes, i.e. Marketing, Application, Qualification, Instruction (Instructing a Solicitor), Possession and Administration. Administration – The Long Term Commitment It’s the last on this list we’ll look at here, i.e. Administration, sometimes referred to as Transaction Management. It’s the ‘process’ that lasts the longest [...]
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