Unsecured Personal Loans for “any worthwhile purpose ...

[Pages:4]Wisr Credit Policy Overview

Unsecured Personal Loans for "any worthwhile purpose" $5,000 to $50,000 for 3, 5 or 7 year maturities

Update to Wisr's Credit Policy 1 Jul 2020

-------------------------------------------------------------------------------------------COVID19 specific Credit Changes from 31 March 2020

The COVID-19 crisis has severely impacted employment in several industry sectors, particularly

1.

Arts & Entertainment

2.

Events planning / catering

3.

Hospitality / bars / pubs / clubs / hotels

4.

Retail (Clothing, footwear, homeware, accessories)

5.

Tourism / travel agent / airlines / hotels / motels / cruises

6.

Gaming

7.

Beauticians / Nail salons / Hairdressers (owners and employees)

8.

Fitness instructors / Personal Trainers / Fitness studio (owners and employees)

This situation requires us to apply more stringent requirements for workers in these sectors. Specifically:

A. Employees in the sectors listed above with Veda 1.1. credit scores below 640 will need to meet the following stability of employment criteria (with no exceptions): ? No casual or contract workers ? No Self-employed ? FT/PT workers must have been with the current employer for at least 9 months

B. Employees in the sectors listed above with Veda 1.1. credit scores equal to or above 640 will need to meet the following stability of employment criteria (with no exceptions): ? Casual or contract workers must have been with their current employer for at least 12 months ? FT/PT workers must have been with their current employer for at least 9 months ? Self-employed ABN > 24 months

Furthermore, for those who satisfy the above employment criteria, Wisr may conduct additional inquiries into the applicant's employment stability. This type of verification may also apply to applicants from other industry sectors also.

Please contact your BDM for more information or any questions. Thank you for your support and patience.

Regards Peter Beaumont

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1 Jul 2020

A selection of Wisr's current underwriting standards are outlined below. These standards are subject to change without notice. This is a not comprehensive list.

Applicants who fail any one of the underwriting standards shown below are typically declined, unless an application is deemed strong enough to be considered for approval by exception. A Joint loan application may be suitable. Please discuss with your BDM or a member of our Broker Support team (1300 992 007).

Metric

Criteria leading to decline

Suspected Fraud

? Application data ? discrepancies within the application to what is found through the credit assessment or verification process such as but is not limited: o social media search o employment verification determined that the applicant no longer works there

? Altered supporting documents

Poor Account Conduct and Behaviours

? Poor lending history (e.g. loans previously sold to debt collection agencies and any repayments seen in the last 3 months)

? Direct Debit dishonours > four (4) (same day dishonours to be counted as 1) within previous 90 days

? Multiple same day cash transactions relating to gambling ? Applicant states they have no bank account ? Undisclosed liabilities

Adverse Repayment History (CCR) Small Amount Loan (Payday)

Equifax Credit Score Cut-off Credit Bureau file age Adverse Bureau findings

Employment and Residence Stability Capacity to Pay

? -No '4' or more or any 'X' in the last 24 months on any open or closed accounts

? -No '2' or more as the most recent RHI for open accounts

? The applicant has payment dishonours under another small amount loan in the last 90 days; or

? The applicant has had two or more (open or closed) small amount loans in the last 90 days.

Note: Payday loans are small amount loans (loans of up to $2,500 that must be repaid between 16 days and 1 year)

? Not eligible for a loan if the applicant has an Equifax Comprehensive Credit Score < 500

? Not eligible if the applicant is 26 years old or above and the Equifax and illion file ages are both < 18 months

? Files between 12-18 months with a referenceable credit are eligible if this credit is currently not in arrears (e.g. RHI=0)

? Discharged or undischarged Bankrupt ? Any unpaid default with a financier ? Paid default for a loan or credit card > $1,000 and PAID within the

last three (3) years ? Paid telco or utility default > $1,000 and PAID within the last three

(3) years ? Skips, court writs or actions outstanding

Applicant's will be ineligible if:

? Casual employment < nine (9) months ? Current & previous Full time or Part time roles both < 6 months ? Current & previous residence each < 6 months ? Self Employed < 2 financial years of operation

? Total gross annual income less than $30k

Private and Confidential ? Not for further circulation without permission of Wisr Finance Pty Ltd

? Wisr's Servicing Calculation shows Net Servicing Ratio (NSR) < 1.10.

Suitability

? Loan Purpose outside of Wisr's lending policy. The following loan purposes would be deemed ineligible for example: o Gambling o Refinancing of bad debts including defaults, default judgements, court writs, mortgage or rent arrears payments o Legal costs relating to a criminal or insolvency proceeding

? Loan contract is unsuitable against the stated loan objective

Important: The standards shown above are subject to change without notice. The lender retains the right to approve or decline any loan application at its sole discretion. Nothing shown here represents a commitment or offer from the lender to provide a loan to any person.

Wisr Servicing guidelines

Wisr provides a downloadable Servicing Calculator on the Broker Portal. Any questions regarding its use please contact your BDM. The maximum allowable household exposure is $100,000. i.e. Each partner may borrow up to $50,000 if approved.

Income Income is established with reference to:

? Two most recent payslips (PAYG employees) ? Two most recent payslips and recent NOA (PAYG employees of family businesses) ? Two most recent NOAs and ITRS (Self-employed)

Additional Income from commissions, bonuses, investments, rents, second jobs, Veteran's pensions and government allowances will be recognised and may be discounted as per servicing calculator.

Living Expenses ? The higher of the (i) applicant's declared household general living expenses, or (ii) a household expenditure measure (HEM) value will be applied. ? Any additional committed, recurring expenditure declared or otherwise identified and not part of HEM will be added. e.g. pay TV, life insurance, child care, child support, private health insurance, gym memberships.

Accommodation expenses ? Boarders/living with parents are allocated a minimum $500 per month (not apportioned). ? The minimum contracted mortgage repayment is multiplied by 1.1. ? Interest-only mortgage obligations are assessed on a P+I basis unless the Interest only portion runs the length of the Wisr loan term.

Loan terms ? Seven (7) year loan maturities are available for all unsecured loans if the applicant's Equifax Comprehensive Credit Score is greater than or equal to 640.

Apportioning ? Outgoings for married and defactos applying alone can be apportioned using verifiable partner income as follows. o Household general living expenditure, including any additional expenses, (to a maximum of 50%) o Rent and mortgage payments where both parties are on the contracts o Personal loan commitments in joint names

Private and Confidential ? Not for further circulation without permission of Wisr Finance Pty Ltd

? Verification of partner income is required via o Regular pay credits in a bank statement; o 1 recent payslip (PAYG employees); o Recent NOA (self-employed, PAYG in a family business)

Private and Confidential ? Not for further circulation without permission of Wisr Finance Pty Ltd

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