Here are a range of broker related industry specific worsd and terms.
Accreditation: This is the process and standards a broker must meet if they are to offer a given lender’s loan products. Accreditation requirements vary from lender to lender.
Aggregrator: A company who has established relationship with a large number of lenders which thereby allows approved broker to lodge loan applications with those lenders.
Claw Back: - The policy of a lender to take back a commission off a broker where a borrower refinances with another lender within a defined period.
Churning: This is where a broker will refinance a borrower’s loan to another lender without there being real benefit to the borrower.
Conforming loan: This is a loan that is for predominatly personal use and offers protection to the borrower under the UCCC.
EDRS: This stands for External Disputes Resolutions Scheme. These are schemes that sets in place a procedure for handling a consumer complaint.
LVR: Loan to Value Ratio. This is the amount a lender will lend as a percentage of the value of a property. For example a $50,000 laon secured by a $100,000 property would be a 50% LVR.
Non-Conforming loan: This is a loan that is for predominatly business or investment use and offers no protection to the borrower under the UCCC.
UCCC: Stands for the Uniform Consumer Credit Code which essentually are the rules a lender must follow when assessing and processing a loan for predominatley personal use. The UCCC also stipulates the levels of protection a borrower has under the code.