ASIC flags concerns in aggregator review

by Mackenzie McCarty14 Mar 2013
“ASIC's report recommends eight ways for licensees to reduce their risk of non-compliance and outlines a number of instances of good practice which, if adopted, will help licensees meet their obligations.”

Kell says the review found a ‘marked’ reduction in mortgage brokers suggesting and assisting borrowers to apply for low doc loans, coinciding with the commencement of responsible lending laws. The volume of credit assistance for home loans promoted as low doc in the three months after January 1, 2011 – when the responsible lending obligations commenced for most home loan lenders – was nearly half that of the three months before.

ASIC is currently reviewing how credit providers are complying with responsible lending obligations when providing home loans promoted as low doc. A report is expected later this year.

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  • by Patrick 14/03/2013 10:43:22 AM

    Thanks for the help Peter, we look forward to increased aggregator fees as they duplicate compliance red tape.

  • by Lou Stergio 26/03/2013 3:33:22 PM

    The legislators these days formulate credit laws with significant industry input. Thankfully!

    e.g. under current NCCP the legislators rightly included the "scaled down" level of broker inquiry clause to reduce the red-tape for simple products like credit cards.

    It is up to us in the industry (and up to the MFAA/ FBAA and lenders) to ensure that ASIC both reduces the red-tape and gets the risks right regarding low-doc loans.