This week, in one of the vendor finance Facebook groups I saw a great question. It went: “Got a buyer who's on temporary visa, but would like paperwork in both him and his wife's name - his wife is an Australian citizen - How does that work: 1) Can he sign contracts (IC/Deposit Builds) to [...]
Read MoreYou will need to be a member of the Finance Brokers Association of Australia (FBAA) to get this first for Australian Vendor financiers, i.e. Vendor Finance Professional Indemnity Insurance. Join FBAA today! The details of this vendor finance policy will soon be available on the FBAA website. However for those needing policy details now, please contact [...]
Read MoreApart from the free Continuing Professional Development (CPD) points you can accumulate by reading and researching the articles in our VFI News, there aren’t a lot of free CPD points to be had. Or so, I thought until I got the FBAA’s latest edition of their e-magazine, The Finance Professional. The Finance Professional The letter [...]
Read MoreSome of you may have seen the original VFI News edition with a similar title back in May 2012. Why would I put it out there again you may ask? It's because I hate to see vendor finance businesses still risking potential fines of $220,000 for an individual and $1,100,000 for a company. Fines that [...]
Read MoreFor years refinancing our purchasers out of a vendor finance transaction, into a traditional home loan, has been a hit and miss affair. The following information from Felicity certainly put a smile on my face. Potential 95% lends to our vendor finance buyers - awesome. ______________________________________________________________ NEWS FLASH… It Is Now Even Easier To Have [...]
Read MoreAll Vendor Financiers with an Australian Credit Licence (ACL) are required to have a documented Internal Dispute Resolution (IDR) procedures. Authorised Credit Representatives are covered by their Licensee’s IDR procedures. The Next Expensive Step If a complaint doesn’t get resolved during a Licensee’s IDR procedures, the next stop is usually COSL or FOS, the two [...]
Read MoreLast Friday a great question was posted to a FB group from Xxxxx, outlining the challenges s/he’s experiencing with an Instalment Contract that’s gone into Default. Xxxxx’s post caught my eye because we assist with these situations regularly. _______________________________________________________________________ My email response to Xxxxx follows: Hi Xxxxx You're not on your own here. I regularly [...]
Read MoreDon’t risk a $5,500 fine! If you have to send a Default Notice to one of your Instalment Contract or Second Mortgage clients, you need to read this, because ignoring the following requirement could cost you $5,500 (50 penalty units). Here’s what the National Credit Code (NCC) has to say about the Form 12 you [...]
Read MoreWith today's launch of our Bilby Loan Guard software I've got to say that developing software is kind of like getting a quote for renovations. That is, it's bound to take three times as long and three times as much as the original quote But it's done and we believe it's a great tool [...]
Read MoreI'd like to thank Alexandra McVay for her permission to publish the following article. This article was originally published in the FBAA's The Finance Professional magazine and is particularly relevant to Vendor Financiers. ______________________________________________________________ THE RISK IN RELYING ON TEMPLATE DOCUMENTS Alexandra McVay, Senior Associate Rodgers Barnes & Green Lawyers I am quite often asked [...]
Read MoreMEDIA RELEASE Finance Brokers Association of Australia Vendor Finance Joins the Mainstream 21/5/2014 Today the Board of the Finance Brokers Association of Australia approved the inauguration of a Vendor Finance Steering Committee. A Committee designed to bring Vendor Finance into the mainstream. This Committee is headed by the Association’s CEO, Peter White, with the [...]
Read MoreWith all the talk about licensing requirements in our industry, it’s worthwhile looking at the Continuing Professional Development (CPD) requirements for both the Australian Credit Licence (ACL) and the Real Estate Agent licence. ACL Holders and Authorised Credit Representatives The NCCP Act 2009 requires ACL holders and Credit Representatives to undertake 20 hours of Continuing [...]
Read MoreI would like to thank Australia’s most experienced vendor finance lawyer, Tony Cordato, for his new ‘rules’ around vendor finance and licensing. They do a great job of clearing the ‘fog’. Tony and VFI News have been talking about the licensing requirements around vendor finance real estate for a long time and Tony has distilled [...]
Read MoreBefore we get into the details of our Application & Qualification Pack Bundle, I'd like to clear up some confusion regarding Deposits and Vendor Finance Management. We recently heard someone wasn't going to use VFM's service because they didn't want to pay 4.4% of the Deposit they were about to receive for a property. Are Deposits [...]
Read MoreThe National Credit Code requires credit providers and credit assistance providers to give borrowers (buyers) ‘prescribed disclosure documents’ as well as find out the borrower’s requirements & objectives. Once upon a time, the application process for most vendor financiers used to consist of a basic Application Form, some checking of the information given on the [...]
Read MoreWe’re regarded as pretty tough on our Credit Representatives because all our Credit Reps have to agree to get their Certificate IV in Finance and Mortgage Broking within four months of us getting their CRN, i.e. their Credit Representative Number, from ASIC. In fact I’m sure quite a few VF’ers discontinued their Credit Rep application [...]
Read MoreI was talking with another long time vendor financier yesterday and we were talking about current industry ‘issues’, specifically Dispute Resolution. We both agreed that current legislation covers the topic very thoroughly ;-) Did We Already Have a Dispute Resolution Policy? We both had a chuckle when we spoke about what we both continue to [...]
Read MoreLooking at the vendor finance industry today is like looking at the mortgage broking industry in the late 1990's. The broking industry back then was fractured and dubious practices were easy to find. As a result, various State governments decided to regulate the broking industry. However, at the last minute, the industry managed to convince [...]
Read MoreSince the introduction of the National Credit Code in 2010, a lot of time has been spent by a substantial number of vendor financiers, trying to work out how to duck and weave around the two pieces of legislation that regulate vendor finance the most. The Terrible Two These two pieces of legislation are: the [...]
Read MoreWhen we got into vendor finance in the early naughties we had a 'brilliant' idea We'd setup a business to Rent To Buy cars or boats or just about anything we could think of. That was Then We didn't follow through with our 'brilliant' idea but, until 1 July 2010, we could have started up [...]
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