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Steady arrears rate, but low docs cause headache

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Australian Broker | 03 Sep 2012, 07:00 AM Agree 0
A ratings agency has revealed the arrears rate in Australia remains ‘steady’ but strong variations exist in low doc loans
  • Country Broker | 03 Sep 2012, 10:17 AM Agree 0
    It would be really interesting to know how much 100% Lo Doc loan were ever written ?? and what % they are of the total Lo Doc market and the total market ?? Was there ever such a deal, I cannot recall one !It would also be intresting to know what percentage of these loan are loacated in WA & QLD .
  • Will | 03 Sep 2012, 10:24 AM Agree 0
    Agree with "Country Broker". As far as I acn recall there NEVER was a 100% Lo Doc product in Australia. So before we take any credence in these stats, lets have soem real hard facts about how many were ever written before we start another unnecessary drama episode !! It is pleasing to note the general Lo Docs have less arrears than normal loans!!
  • 1martym1 | 03 Sep 2012, 10:36 AM Agree 0
    I think by 100% low doc they mean 100% self certified? Not 100% LVR?
  • Adrian | 03 Sep 2012, 10:50 AM Agree 0
    1martym1, you are correct...100% Low Doc isnt referring to LVR! Its referring to 100% of the income was self certified (i.e there was no PAYG componant!)
  • GB | 03 Sep 2012, 11:11 AM Agree 0
    so low doc, or sub prime is a real problem here. Agree with country broker.... It would be really interesting to know how much 100% Lo Doc loan were ever written ??

    the answer is truck loads
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