All Topics / Finance / Who approves the loan?
Hi All,
When u apply for a loan say thru the main 4 banks and u deal with a ‘lending person’ at a branch do they have authority to approve the loan? Or is it up to a third party somewhere else, ie. is all they do collect paperwork and pass it on?
Is that the same for the other smaller lenders to?Then in the case where the loan requires MI if the lender is happy with the loan can they approve it or is it still up to the MI?
Thanks
GrantSome branch managers used to have, and maybe still do, the authority to approve loans up to a certain level of LVR and amounts.
These days, data is entered and the loan is usually approved by computer. If rejected, then it may be manually assessed. There may be some slight discretion, but not much usually.
Some lenders have LMI people actually sitting in their offices, and once the loan is approved by the bank, it must then be approved by the LMI person – if LMI is applciable
Terryw
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Terry is right although the lending discretions for most Front End managers is very low and you wouldn’t get far with they can approve.
Most of the bigger loans go up the line for assessment either manually or through online credit scoring.
Richard Taylor
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