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LMI provider sees 22.4% drop in net profit

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Australian Broker | 04 May 2017, 08:25 AM Agree 0
Financial results of a leading provider of lenders mortgage insurance reveal difficult economic conditions for the firm
  • Really? | 04 May 2017, 09:44 AM Agree 0
    "Sound Practises"? All APRA did was ensure banks made it harder for first home buyers to get a loan.
    We now have 95%LVR including LMI; compared to 95%+LMI - makes a big difference to a first home buyer. Plus in some cases now a higher interest rate based on the LVR.
    Ensures they need approx. 7.5% instead of 5% deposit, + Stamp duties etc..
    Big banks have now worked out that LMI is a cash cow, and hence they self insure (effectively LMI is their 'other' Application Fee).
    A few years ago, it was apparent the LMI providers had gotten too greedy for too long; and this allowed the big 4 banks to easily step in and take it over - now they only have the 2nd tier lenders....
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