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ASIC probe forces non-major to improve lending standards

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Julia Corderoy | 26 May 2015, 07:30 AM Agree 0
Non-major lender forced to improve lending practices following ASIC's concerns about the way it assessed home loan applications
  • Maria Rigoni | 26 May 2015, 09:39 AM Agree 0
    ASIC doesn't get the NCCP which requires "reasonable" inquiry to assess if the borrower will be unable to comply, or could only comply with substantial hardship with the consumer's financial obligations in taking out the loan.
    Any reasonable person understands when making a financial commitment to repay a loan a person's living expenses will not be the same after the loan settles.
    If ASIC wants actual living expenses why do lenders need to add an assessment margin to the interest rate?
    A more sensible approach is to discuss the repayment amount - is that affordable to the borrower?
    What ASIC is doing in this interference is making it harder for responsible borrowers to access loans at an affordable price from responsible lenders.
  • lol | 26 May 2015, 09:47 AM Agree 0
    And only 1 in 20 people even have a clue what their monthly expenses are....which hasn't changed from 20 years ago.
  • george | 26 May 2015, 06:52 PM Agree 0
    Asic are doing their job. I lost my home the same way.
  • Part time believer | 27 May 2015, 09:07 AM Agree 0
    The issue around living costs is well known to all brokers. Ask the client and they say $4000 a month. Then you say well that means it doesn't service with the lenders buffers. Ohh says the borrower ok sorry I meant $2000. The whole thing is a sham. Why not go bank to indexes with a buffer in place at that level based on household income. Much better than this broken system we have.
  • AB | 27 May 2015, 10:21 AM Agree 0
    Living Expenses are not verifiable, so i dont think this fixes the issue. I'm sure BOQ arent the only ones to blame for this.
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