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Non-banks will adapt to DEF ban

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Australian Broker | 25 Mar 2011, 06:00 AM Agree 0
With the ban on exit fees now law, Pepper COO David Holmes has predicted non-banks will find a way to adapt
  • Patrick | 25 Mar 2011, 10:41 AM Agree 0
    How will the ban on DEF's affect LMI premiums capitalised on top of the loan amount? In the absence of a pro-rata refund of LMI premiums, this is nothing more than a DEF. Alternatively non-banks can capitise establishment fees upfront in the same manner as LMI and it is then a further loan to cover fees and not a DEF. I bet Swanny the Cheshire Cat has not even considered this in the rush to implement, without parliamentary debate, this illconsidered regulation.
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