Products and tools developed by Meyer de Waal

The introduction of the National Credit Act had an immediate impact on the approval of credit agreements. The affordability factor, which is the capability of a debtor to pay back a loan became, the lender’s primary focus of a lender before granting a credit facility. Lenders are imposed with severe penalties if found guilty of risky lending but, as the market experienced a major decline in home loan approvals, there was an unsurpassed increase in unsecured lending. Capitec Bank is a prime example of expansion of unsecured lending, and African Bank is an example of a lender that was almost sunk as a result of risky lending practices.

Credit checks

The first step in applying for finance is a credit check. The My Bond Fitness process (MBF) was developed with Limitless, to ensure accuracy and efficiency in assessing a credit application. Before MBF, if a comprehensive analysis of a credit application was to be assessed, it would involve the customer granting consent to a credit check. This would involve written consent, copies of identity documents, submission of an application to a credit bureau, and then exchange of the bureau report via email or fax to the consumer. This entire process is now automated by MBF.

Assessing affordability

The second step would be to assess affordability once a positive result is obtained from a credit profile report. Before MBF, it would involve, on the part of the applicant:

• preparing a personal budget (tedious and mostly inaccurate)
• visit the bank to get certified copies of bank statements and provide proof of income.

The credit assessment centre of the lender then painstakingly had to work through this information. This entire process is now automated by MBF. From one online platform, supported by Yodlee, the customer can obtain their own report, and link their internet banking profile with the MBF software, which will provide an accurate analysis of the budget and debt repayments of the customer from the debit and credit transactions over the past 90 days. The risk of risky lending is thus managed, as the MBF analysis is done via real time and accurate banking data.

MyBondFitness facts and links

The MBF website is https://www.mybondfitness.co.za/  MBF is in the process of securing their own Yodlee licence, as well as their own in-house IT team to own and control the entire development team and process. Certain development will still be outsourced.

A white-labelled version was developed for Ooba, one of the largest mortgage origination companies in South Africa https://indicator.ooba.co.za/#/ .

The MBF process is supported through API integration with a debt and affordability repair service, Maxlaw, which comprises nine debt and affordability repair offices on a national footprint.

The MBF process is further supported by a CRM for the leads database (supported by Property Engine) as well as the electronic communication developed on the Intercom platform.  Such communication can be branded per campaign for a particular project. For example: African Bank employee homeownership campaign; Just Property Group home tenant home ownership campaign; Real Estate Investor Magazine; Ooba bond indicator].

The MBF process is currently developed for home loan processing only, but it is envisaged to be made applicable for motor vehicle finance, financial planning, and short term lending soon.

As on 9 May 2017, 4,925 subscribers enrolled with the MBF process. MyBondFitness (Pty) Ltd.  is 100 % owned by Meyer de Waal Family Trust.

MBF has progressed from a self-funded start-up to a business, and is ready for further expansion with the appropriate business partners who share the same vision, appetite and energy.

MBF Supplementary products

The MBF process is further supplemented with the other products, services and tools developed with specific application in the property environment:

• Rent2buy – https://www.irent2buy.co.za/ – rental guarantee service also available through an outsourced service provider

• Debt and affordability repair – My Budget Fitness in association with Maxlaw
• Mobile budgeting tool – mobile2budget.com
• Subsidies for first time home buyers – we own the domain flisp.co.za, and we have direct access to the software platform of the Department of Human Settlements to provide a Flisp pre-approval (only available in the Western Cape and we are the only service provider with such functionality)

• A comprehensive CRM to facilitate Flisp applications http://flow.amn.co.za/vault/index
• Education for home buyers
  • Tenant education – most recent project – Just Property 11 000 tenants http://hometimes.co.za/2016/08/just-property-gives-its-clients-homeownership-tools/
  • Employee education – most recent project is African Bank with +/- 3 700 employees
• Legal & conveyancing services – Meyer de Waal Inc. mdwinc.co.za.

Revenue

The vision of MBF is to have the largest database in the property environment of prequalified, educated home buyers with legal support and services. Such opportunities/buyers will be made available to sellers, property developers and estate agents in exchange for a shared sales commission, on the following terms:

• Sales commission:
  • Own sales 2,5 – 5 %
  • Shared commission 2,5 % – per arrangement with other agents
  • Attorney Realtor Hub – Attorneys are exempt from the Property Practitioners Bill.
• Mortgage origination:
  • Mortgage origination agreement already in place with Evo, a subsidiary of Ooba
  • Commission earnings – home loan amount x 1% commission (Vat inclusive)
  • Insurance commission
  • Facilitated through MBF Home Loan services (Pty) Ltd
• Legal
  • Rent2buy fee re drafting of legal agreements
  • Property transfers
  • Mortgage registrations
  • Meyer de Waal Inc.

For more information contact Meyer de Waal – meyer@mdwinc.co.za, 021 461 0065 2nd Floor, Block C, The Boulevard Office Park, 083 653 6975 Searle Street, Woodstock, Cape Town