|For those estate agents who adopt a responsible and professional approach to the demands made upon them from the recently introduced National Credit Act the new legislation is little more than a storm in a teacup. |
But for those agents failing to comply with its new credit control regulations the act could become a minefield for themselves and their clients, according to Erras Lintvelt, regional general manager FNB KZN.
Addressing a PropValues estate agent seminar in Durban this week, the economist repeatedly emphasised the need for estate agents and all other intermediaries in the process being knowledgeable and fully conversant with the credit requirements of the act. Failure to do so could result in slower processing of the application or even its rejection.
Although FNB KZN had conducted extensive education seminars with mortgage originators and estate agents on the act Lintvelt evinced surprise at the apparent low number of delegates among the 230 member gathering who had responded negatively when asked if they had received training on the legislation even though the act had already been introduced. He urged their immediate full acquaintance with the act and offering further FNB conducted courses.
In terms of banks’ agreement with mortgage originators, Lintvelt said, the lenders were only allowed to communicate directly with the homeloan applicant after he, or she, had accepted the terms offered by that particular bank. This meant applications for loans had to be accurate, comprehensive and reflective of the true creditworthiness of the applicant.
In terms of the act and also in their own interests Lintvelt pointed out that consumers also had a responsibility to ensure that the agent or homeloan consultant servicing their finance needs were suitably accredited.