We Tell You About Westpac struggling to approve and settle loans

We Tell You About Westpac struggling to approve and settle loans

Westpac’s problems with home loan applications have extended to loan settlements as the backlog grows and brokers have been told the bank is still working feverishly to expedite loans approved as far back as March 20.

An email from a Westpac representative dated Monday, April 20 said the bank was seeking to prioritise new mortgages over refinanced loans and would escalate settlements due within one week to the top of the pile.

“We continue to have some challenges with document preparation through to settlements as a result of reduced capacity arising from the pandemic lockdowns,” the email reads.

“We are presently working on applications received at CMS on 20 March 2020 and prioritising for transactions involving a purchase where settlement is due within the next five business days.”

The delays in the settlement of loans approved a month ago suggest the bottleneck at Westpac includes the preparation of loan documentation and goes well beyond the problems created by the closure of its Philippines data processing centre. (more…)