This week’s winning comment came after it was revealed that complaints about LMI had tripled over the past year.
In our article, FBAA
president Peter White
called for major reforms and mandatory disclosure. One reader, under the pen name ‘Positive Broker’ put the onus back on lenders.
“I would actually argue the lenders need to do better here. Technically it is the lender who takes out and pays for the LMI to cover a potential shortfall upon default. It is the lenders choice to pass the cost on to the consumer. I.e. they usually absorb the cost under 80% LVR. LMI definitely needs a shake but the lenders need to be more upfront as well.”
Thanks to everyone who contributed comments over the last seven days and keep an eye out next Friday to see if you're the author of Australian Broker's next top 'Comment of the Week'!