C.27 Compliance - Statement of Credit Assistance (SOCA)

Statement of Credit Assistance (SOCA)

The Statement of Credit Assistance has replaced the need for 5 documents

1. Credit Proposal

2. Credit Quote

3. Preliminary Assessment

4. Loan Recommendation (Sales Document) 5. Privacy Disclosure (needs to be signed first if a credit chech is undertaken)

The SOCA states important information about the clients financial situation, requirements & objectives, and lender eligibility, in relation to the credit requested. Brokers are required to provide a SOCA

• suggest or assist with submitting a new loan

• suggest or assist with a loan increase

• suggest or assist wirth remaining with the same lender

When to reissuing the SOCA The SOCA must be reissued if the loan amount, loan instalment or loan fees have INCREASED. If the client has signed the document within 90 days they are not required to resign it as long as you can prove they received the amended SOCA. If the loan terms have been DECREASED by the lender ie approved for a lower amount, a new SOCA is not required - however you should make a FILE NOTE to confirming this.

HINT - When in doubt send the client a new SOCA

How to create and save the SOCA document 1. It is important that you fill in ALL the VOWNET FIELDS Many of the VowNet fields are populated in to the SOCA document

2. Create the SOCA document from the compliance tempates

3. Save the Signed copy into VowNet.

The SOCA should be saved into VowNet as “Signed – PB Statement of Credit Assistance”

COMMISSION DISCLOSURE

The software should calculate the amount of commission you receive. If this is not accurate please amend the amount in the Word document. If this is a recurring problem you can edit the default commission rates in Settings.

VIDEO - How to change the default commission rates

VIDEO - How to add electronic signatures to your SOCA Document