Browse Forums Home Finance 1 Jun 08, 2011 11:44 am In March we received conditional approval on our mortgage from Bankwest subject to LMI approval. QBE the LMI provider for Bankwest declined our application due to a $600 default that was found on my husband’s credit history. The bank never picked this up or mentioned it during the whole approval process. Hubby also wasn’t aware that he had a default listed against his name. The default dropped of hubby’s credit history 4 and half weeks later, due to it having been there for 5 years. I guess I am just after some advice from anyone who has been in this position before. Did you apply with a different bank with a different LMI provider? And were you approved? We have considered waiting and reapplying with Bankwest down the track as the actual bank had no issue with our application. Can we do this and if so how long do we have to wait? Or are we completely excluded from applying with Bankwest and any other bank that uses QBE as their LMI provider? Thanks Sarah, Andy & Parker - Building Our First Home - Burbank Lamont 2600 Our Thread: viewtopic.php?f=31&t=51696 Re: Declined by LMI - what to do next? 2Jun 08, 2011 2:01 pm I'd go with a lender that uses Genworth as their mortgage insurer. Then there will be no way of knowing that there was a decline. All that will be on your credit record is that you have made an application for credit, not whether it was declined. Just tell the next lender that you changed your mind to go with Bankwest. If it's not on your credit record, you don't have to disclose this. Good luck! Land at Chermside At tender stage Re: Declined by LMI - what to do next? 3Jun 08, 2011 3:52 pm But just be aware that the new LMI company could contact the original LMI and ask why it was knocked back. That is part of you signing the disclosure forms - lenders can phone others and request info regarding -previous apps. Some things are worth waiting for. Re: Declined by LMI - what to do next? 5Jul 05, 2011 3:05 pm zozo I'd go with a lender that uses Genworth as their mortgage insurer. Then there will be no way of knowing that there was a decline. All that will be on your credit record is that you have made an application for credit, not whether it was declined. Just tell the next lender that you changed your mind to go with Bankwest. If it's not on your credit record, you don't have to disclose this. Good luck! I as a broker would not do this...but either way; the LMI lender will find out either way; and this will make matters worst; 1. You can try genworth but fully disclose; i would suggest for you to choose a lender that has "genworth " as part of their DUI and they have a strong bond with; ur lucky that it was rejected by QBE; if it was the another way around..then you would have trouble as QBE auto rejects and deal that was rejected by Genworth. 2.Contact Bankwest and get it reapproved under the same deal with Genworth given the new info that the default has been lifted ( preferred way) 3. Lower LVR Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Declined by LMI - what to do next? 6Jul 10, 2011 11:05 am If you deal has been declined due to a default that has been paid and has now dropped off your credit file then you are with the wrong lender. There is now way that a deal with a default of that amount <$1000 and being paid, and being over 4 years old and about to drop off would be declined if I was looking at the deal. In particular you would need to have equity or genuine savings - Genworth would do that every day of the week. Building with Fairmont Homes NSW at Glenmore Ridge Lot 1007 Our Builder http://www.fairmonthomesnsw.com.au Our Blog http://drewandrenee.blogspot.com/ Re: Declined by LMI - what to do next? 7Jul 14, 2011 5:14 pm Without a doubt, apply with a lender who has a Delegated Underwriting Authority[/url] (DUA) with Genworth. Talk to a mortgage broker and they can sort this out. BankWest does not have a DUA with QBE so unfortunately they are at their mercy. A shouldn't normally be a problem when applying for a loan, however the exact policies vary depending on the loan amount, percentage of the property value you are borrowing, overall credit score and lender / LMI that you apply with. As a general rule small defaults are rarely accepted for 95% loans and loans with no genuine savings. Some lenders such as ANZ and Westpac are very particular about defaults and rarely help customers with any at all. The new lender you apply with will likely want to know why the BankWest loan did not proceed. BankWest does not use Genworth so you would need to apply with another lender. Re: Declined by LMI - what to do next? 8Jan 22, 2019 6:42 pm shape zozo I'd go with a lender that uses Genworth as their mortgage insurer. Then there will be no way of knowing that there was a decline. All that will be on your credit record is that you have made an application for credit, not whether it was declined. Just tell the next lender that you changed your mind to go with Bankwest. If it's not on your credit record, you don't have to disclose this. Good luck! I as a broker would not do this...but either way; the LMI lender will find out either way; and this will make matters worst; 1. You can try genworth but fully disclose; i would suggest for you to choose a lender that has "genworth " as part of their DUI and they have a strong bond with; ur lucky that it was rejected by QBE; if it was the another way around..then you would have trouble as QBE auto rejects and deal that was rejected by Genworth. 2.Contact Bankwest and get it reapproved under the same deal with Genworth given the new info that the default has been lifted ( preferred way) 3. Lower LVR Regards Michael Hi i have just been declined for MLI as i defaulted over 10 years ago with MLI is there anyway that i can possibly get LMI? As i cant get the 20% deposit? My broker has never seen anything like this. Cheers Dozza Re: Declined by LMI - what to do next? 9Jan 22, 2019 6:47 pm Hi Dozza, there are two mortgage insurers - and then some lenders self insure. You May be able to qualify with the other mortgage insurer or with a lender who self insures. It’s certainly not an ideal situation and I guess you can understand if the mortgage insurer lost money last time they would be reluctant to take the risk again. Another option - but with caution - can you get a guarantor to cover the deposit? In this instance you need to satisfy that you won’t get in trouble again. Best of luck, your broker is the best to advise on who they’ll look at for you. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Declined by LMI - what to do next? 10Jan 22, 2019 6:49 pm You have the option to use other LMI provider OR a bank that has their own DUA ( Some bank has their own internal insurance OR some banks has authority to approved a LMI deal on LMI behalf without asking them, especially if the loan is under $1,000,000) Your broker should be able to advice based on this experience which another bank or LMI provider is suitable for your situation, as each LMi and bank has different policy regarding Default ( from date, Amount, who/ teleco/credit card and also your overall file strength in regards to how long you been employed) . ^ Mick Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Declined by LMI - what to do next? 11Jan 22, 2019 6:57 pm becjarrettdalton Hi Dozza, there are two mortgage insurers - and then some lenders self insure. You May be able to qualify with the other mortgage insurer or with a lender who self insures. It’s certainly not an ideal situation and I guess you can understand if the mortgage insurer lost money last time they would be reluctant to take the risk again. Another option - but with caution - can you get a guarantor to cover the deposit? In this instance you need to satisfy that you won’t get in trouble again. Best of luck, your broker is the best to advise on who they’ll look at for you. Thank you I understand that the LMI doesnt want to lose money again. But surley this does not mean i could never get LMI. Which would mean i cant buy. Im pretty sure that the LMI i defaulted with was genworth. Like i said my broker has never seen it and does not know what to do. Re: Declined by LMI - what to do next? 12Jan 22, 2019 7:23 pm What i meant was " who was Default with" - ie was it a default on paying a bill with Telstra, A credit card company, Private company etc... Genworth is the one that rejected the deal, but most likely not the company that listed your default 10 years ago. If Genworth is causing an issue then consider.... * QBE * ANZ LMI * Arch Capital LMI * Auswide LMI ( Need to request for it) * REF LMI ( Need to request for it) etc... ^ Each LMI has their own policy regarding Default limits, time and who the default was with ( Telco under $500- $1,000 is generally ok..the rest is case by case depending on the Limit etc..) Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Declined by LMI - what to do next? 13Jan 22, 2019 7:25 pm shape - he’s saying the loss was to the mortgage insurer itself. @Dozza try QBE or perhaps ANZ or Westpac - check with your broker. Unfortunately they have the right to refuse to risk their money again. But the other company may not have the same issue. otherwise you’re going to need a guarantor or more savings....tough spot.... Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Declined by LMI - what to do next? 14Jan 22, 2019 7:26 pm shape What i meant was " who was Default with" - ie was it a default on paying a bill with Telstra, A credit card company, Private company etc... Genworth is the one that rejected the deal, but most likely not the company that listed your default 10 years ago. If Genworth is causing an issue then consider.... * QBE * ANZ LMI * Arch Capital LMI * Auswide LMI ( Need to request for it) * REF LMI ( Need to request for it) etc... ^ Each LMI has their own policy regarding Default limits, time and who the default was with ( Telco under $500- $1,000 is generally ok..the rest is case by case depending on the Limit etc..) Hi sorry i wasn't clear i defaulted on a home loan due to a break up and genworth was lmi on the loan Re: Declined by LMI - what to do next? 15Jan 22, 2019 7:30 pm Ohh got it. Avoid QBE then...they dont like Loan and LMI defaults. Same goes for Auswide LMI. You will need to try ANZ LMI ( under 90% LVR if new customer or 95% if existing) OR Arch Capital which is Westpac but has to be under 90%....overall ANZ is easier generally for these Loan/LMI default. Else you can choose too pay a risk fee, but that's more expensive compared too a LMI deal. Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Declined by LMI - what to do next? 16Jan 22, 2019 7:39 pm shape Ohh got it. Avoid QBE then...they dont like Loan and LMI defaults. Same goes for Auswide LMI. You will need to try ANZ LMI ( under 90% LVR if new customer or 95% if existing) OR Arch Capital which is Westpac but has to be under 90%....overall ANZ is easier generally for these Loan/LMI default. Else you can choose too pay a risk fee, but that's more expensive compared too a LMI deal. So there is stil a chance that it could work out? Im just so angry at the younger me! The default is not on my credit check its just that the lender my broker went through uses the same LMI that i had last time. Re: Declined by LMI - what to do next? 17Jan 22, 2019 7:47 pm Then your fine, especially given the time-frame. Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au brokers will also be in a position to get you a better rate than the advertised rate most times. 6 7575 i imagine you also have another contract with an architect? and yeah, whatever other's said about special conditions and appendices 16 16012 Hi all I am looking to run a water line under my concrete footpath which is directly next to my home, was seeing if this is possible without cutting the entire section… 0 20185 |