You must provide the Credit Proposal disclosure at the same time (preferably before) as submitting the loan to the lender. This contains information relating to the lender/product, fees/charges and commissions you receive or will pay (e.g. referrers).
The Credit Proposal Disclosure needs to be signed/dated by the client(s) with a copy provided to the client and a copy held on file in Mercury. This confirms acceptance of the loan and also acknowledges the insurance information section.
Both the generated Credit Proposal Disclosure document and the fully executed copy of the Credit Proposal Disclosure document need to be held in Mercury. The original copy needs to be retained on file as this provides a date stamp to evidence the document was completed prior to lender submission which is the timeframe required under the legislation.
If for any reason your application is withdrawn or the customer seeks another lender you must review your calculations (funding position/borrowing capacity and product comparison) and create a new preliminary assessment. Once completed, reproduce the Credit Proposal Disclosure document to match the loan proposal to the new lender. You must retain and record each interaction with your client so do not delete previous compliance documents. These may be requested for audit and review purposes.
The Credit Proposal Disclosure can be generated from the compliance wizard box in Mercury (number 5 in the box).
If you have any questions relating to this topic contact email@example.com