12 January 2015

La Trobe Financial passes reliability test with flying colours

You may recall one of our November editions of Origination News titled “Peace of mind = peace on earth” which focused on the importance of lenders delivering settlements on time as promised prior to Christmas, and the unfortunate likelihood that this simply will not happen.

True to form, we received an influx of enquiries from brokers requiring urgent settlements prior to Christmas, many of which were previously submitted to other lenders promising pre-Christmas delivery, only to have the broker lose confidence that they would actually be able to deliver on their promise.

We are pleased to report that not only did we pass this test with flying colours, ensuring brokers and their clients enjoyed a peaceful Christmas and New Year, we finished the shortest “business day” month of the year with our highest level of monthly settlements for the year – proving that reliability and visibility (via our unique Virtual Settlement Room online loan tracking and communication system) are so important to brokers and their clients, particularly at crucial times during the year.

Here is an example of one of the success stories we had last month:

Product: Lite-Doc Residential
Purpose: Refinance and debt consolidation
Loan Amount: $850,000

Applicant seeking to refinance a first mortgage from a major bank ($250,000) and second mortgage held with a private lender ($550,000).

The second mortgage had exceeded its maturity date and was incurring penalty interest of 36% p.a. meaning the applicants repayments escalated to $16,000 per month, which they could not afford, and the mortgagee was looking to take possession of their home.

The applicants had a sound exit strategy and satisfactory explanation for their current situation – the second mortgage was a bridging loan set-up to finalise a subdivision project which ran over time. The subdivision was now complete and the applicants could demonstrate surplus capacity to service the new loan at more conventional interest rates.

We received notification from the client of their intention to proceed with a loan with us on Wednesday 10th December 2014 on the proviso we could deliver settlement prior to the second mortgagee closing their office for Christmas. Any delay would cost the applicant thousands of dollars, and potentially their home.

Result: The loan was settled on Monday 22nd December 2014 and the borrower was able to enjoy a much less stressful (and less expensive) Christmas in their home.

The introducing broker, Mr John Radicchi of Great Home Loans, who did a fantastic job working with us to ensure the loan settled on time, had this to say following successful completion:

“I would like to extend my heartfelt thanks to all of the La Trobe team & Purcell Partners for pulling together & making the seemingly impossible possible – you guys are THE BEST !!

I'm such a La Trobe Financial fan because the whole team does incredible work all the time, not just once in a while. I can't commend you guys enough for what you have done for the benefit of my clients.”

This scenario was one of many we were able to complete on time as promised this Christmas.

If you have not yet experienced the benefits of our Virtual Settlement Room (VSR) first hand, please click here to register online to see what sets La Trobe Financial apart from other lenders.

The VSR connects the broker, the borrower, the borrower’s representative and our panel solicitor, online - in real-time, giving all parties the ability to ask questions, make notes, and to see the progress of the settlement at every step along the way, ensuring there are no last minute surprises.

If you are yet to experience how lending should be with La Trobe Financial call our credit team directly on 13 80 10 to see how we can assist.

... That's Lending

Best regards,
Cory Bannister, Vice President, Head of Distribution
La Trobe Financial Asset Management Limited

La Trobe Financial is one of Australia's leading independent credit specialist Fund Managers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 123 staff and has managed over AUD$10Billion covering over 100,000 investment grade assets since inception in 1952.

Copyright 2014 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

The following awards and ratings were given to the Pooled Mortgage Option within the La Trobe Financial Mortgage Fund and may be viewed on our website

Ratings And Awards

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Please Note: This publication is for accredited broker use only and is not for distribution to consumers.

^ Depends on risk grade of Borrower

All loan applications are fully assessed to ensure the loan is not unsuitable and that we meet our responsible lending obligations in accordance with our usual underwriting requirements. All features and interest rates are current as at the date of publication. Conditions, fees and charges apply. This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website. La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you. The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may be lower than expected. Investors risk losing some or all of their principal investment. The investment is not a bank deposit.

La Trobe Financial Services Pty Limited - Australian Credit Licence Number: 392385
La Trobe Financial Asset Management Limited - Australian Credit Licence Number: 222213

Terms, conditions, fees, charges and La Trobe Financial lending criteria apply.

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1. Zenith's "recommended" rating indicates that it has high confidence in the manager meeting its objectives. The Zenith Investment Partners ("Zenith") ABN 60 332 047 314 rating referred to in this document is limited to "General Advice" (as defined by section 766B of Corporations Act 2001) and based solely on the assessment of the investment merits of the financial product on this basis. It is not a specific recommendation to purchase, sell or hold the relevant product(s), and Zenith advises that individual investors should seek their own independent financial advice before investing in this product. To view the relevant research information, please visit www.latrobefinancial.com The rating is subject to change without notice and Zenith has no obligation to update this document following publication. Zenith usually receives a fee for rating the fund manager and product against accepted criteria considered comprehensive and objective.
2. SQM Research - 4 stars to 4.25 stars - superior, suitable for inclusion on most Approved Product Lists. To view the relevant research information, please visit www.latrobefinancial.com This rating will not take into account your, or your clients' objectives, financial situation or needs. It is up to investors to consider whether specific financial products are suitable for your objectives, financial situation or needs. Research houses receive a fee from La Trobe Financial for rating the product.
3. Lipper Leaders Rating Total Return (Score – 5) Lipper Ratings for Total Return reflect funds’ historical return performance relative to peers. The ratings are subject to change every month. The highest 20% of funds in each peer group are named Lipper Leader or a score of 5 for Total Return. Lipper Leader ratings are not intended to predict future results and does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Thomson Reuters Copyright, All Rights Reserved.
4. Australia Ratings (AFSL 346138) makes every effort to ensure the reliability of the views and rankings expressed in its reports and those published on its websites. Australia Ratings research is based upon information known to it or which was obtained from sources it believed to be reliable and accurate at time of publication. However, like the markets, it is not perfect. This report is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore discuss, with their financial planner or advisor, the merits of each rating for their own specific circumstances and realise that not all investments will be appropriate for all subscribers. To the extent permitted by law, Australia Ratings and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information within the report whether or not caused by any negligent act or omission. If the law prohibits the exclusion of such liability, Australia Ratings hereby limits its liability, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.