Liberty on helping brokers navigate complex lending scenarios

0:00 We love to understand the story and the context behind the scenario. That's how we find our ability to drive a path to

0:08 yes. [music] Hello and welcome to MPA TV. I'm

0:14 delighted to welcome David Smith, chief distribution officer of prominent non-bank lender Liberty. For nearly 30 years now, Liberty has been bringing a

0:23 freethinking approach to lending solutions for the home, car, SMSF, and everything in between. Liberty prides

0:31 itself on bringing flexible solutions for brokers and their clients. Certainly a competitive advantage in this day and age of shifting tax settings, market

0:40 volatility, and unpredictable RBA rate decisions. David joins us to discuss how collaboration, innovation, and

0:49 flexibility can help brokers navigate their clients through these choppy waters. David, it's great to have you on.

0:56 Thanks, Billy. Uh, pleasure to be here. Thanks for having me.

0:59 All right, so to start with, David, as brokers increasingly encounter complex scenarios, what should they focus on when helping clients in the current environment?

1:09 Yeah, you're you know, you're exactly right, Billy. E every deal just about that comes across a broker's desk is getting more and more complex these

1:16 days. We hear that all the time. And I would say first and foremost, look beyond the obvious. As a as a good

1:25 broker would know, looking for the context and the full story behind the scenario is often much more important

1:33 than the simple facts and figures up front. I'd also say it's uh it's really important and valuable from a customer

1:40 service point of view to engage early with your chosen lender or lenders to look broadly across your panel and look

1:50 for maybe some of those alternative options that wouldn't have come front of desk for you uh in times past. But now

1:57 it's more important to have a broad spectrum of lenders at your disposal than just a narrow group. Some of the non-bank lenders and the leading

2:05 non-bank lenders um have more flexibility in terms of policy and appetite than perhaps some of the

2:11 mainstream banks might and therefore it's good to be well-versed in those policies, those niches uh and those

2:20 alternative ways of of looking at your scenario. Um, we're probably a good example of that and we'd like very much

2:28 to get involved early to engage at a BDM, a scenarios team or even a credit assessor level early on because the

2:36 trick of using alternative uh, lenders and non-bank lenders is to get the depth of their experience and expertise in

2:45 those different styles of assessment and lending so that you can uncover the benefits and policies that exist there.

2:51 even if you don't use them all the time and you're not too familiar with.

2:55 Yeah, 100%. As all viewers probably know, there have been quite a few SMSF lending changes introduced since the

3:02 budget. Uh so I want to know uh how is Liberty supporting brokers to navigate these SMSF lending changes and to guide clients through what comes next?

3:12 It's been a a busy time and uh an important time for brokers and their clients. you know, clearly this is a significant change that came with

3:20 relatively short notice and little warning. Um, and this is superanuation we're talking about. You know, this is

3:27 this is a serious asset for the future of the client in question. Um, and so brokers have responded, at least in our

3:35 experience, uh, fantastically in the support that they have provided to those clients at pace in an emerging and

3:43 perhaps more complex than usual environment. Our approach has been to stay fully open for business. Um we

3:52 haven't pulled back from any aspect of our SMSF lending. Um and we've experienced significant volumes as a as

3:59 a result. We have increased our staffing and our coverage both in the field through BDMs uh and in the assessment

4:08 teams so that we can continue to provide service as usual within the guidelines of the date deadlines. But we are

4:16 continuing to see a significant flow of um a business come in with contracts dated pre10th of August of course. Um

4:26 and you know our message has been we're still there to help and the emphasis has shifted though from rather than the

4:33 administrative or transactional to the supportive and the explanatory and we've really played that role of sort of

4:41 helping hand to take both brokers and their clients through the journey um within these tight time frames. Um the other thing um things that we've been

4:50 focused on at the same time is looking ahead trying to educate and inform around alternative options for brokers

4:57 because residential SMSF lending is is closing but other forms of lending commercial lending within SMSF continues

5:05 of course into the future but it's perhaps for many brokers and their clients it's not something that they considered first and foremost but now has become a very uh viable and

5:14 potentially attractive option for them to consider. So, we're helping educate in that space as well. And finally,

5:21 there will be um refinance of the residential SMSF loans down the track.

5:27 So, we're working now as fast as we can to streamline our processes and our approach to being able to serve those refinances down the track. I guess

5:36 that's one of the benefits of working with a flexible lender like Liberty.

5:39 However, David, um what do you wish more brokers understood about working with a specialist lender like Liberty?

5:46 We work hard to become and stay front of mind with all of the brokers who support us out there in the market. But the

5:54 simple fact is for for us, like most um non-bank lenders, we don't stay front of mind all the time because perhaps we're

6:01 not having a a broker is not having a deal that would fit our our policy and our niches every day of their working week, but rather less frequently than

6:10 that. And so we have to refresh. So, you know, my wish list would be um engage with us and maybe engage with us when

6:18 you don't have a deal that looks like Liberty coming across your desk so that we can remind you, refresh your understanding and your knowledge so that

6:26 come the time you will recognize something that would benefit from say a 1% buffer or a 40-year loan term rather

6:33 than us needing to remind you after that deal hasn't been able to get set. The other thing I'd I'd stress is we have an

6:42 experienced deeply experienced team out in the field with our BDMs in our broker support team based down in Melbourne and

6:50 in our credit assessment teams and and many non-bank lenders are in that situation. But Libbyy's been around for almost 30 years now and the depth of

6:58 understanding of what non-bank lending is but also can achieve for brokers clients is deep. So we love to get

7:06 involved early. We love to understand the story and the context behind the scenario. That's how we find our ability

7:14 to drive a path to yes more often. Uh when we understand more because if the

7:20 broker is only dealing with us every few weeks, say rather than every couple of days, we're doing these deals every single morning, every single afternoon.

7:29 and we can help to navigate the pathway of flexible underwriting handinhand with the broker when they do come to our door.

7:38 Well, it sounds like for me the message is for all brokers tuning in, be sure to contact your Liberty BDM to keep these client conversations flowing. Thank you so much, David, for joining us.

7:48 My pleasure. Thanks, Billy. All the best.