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Non-major bans loans to foreign buyers

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Australian Broker | 06 Jun 2016, 08:33 AM Agree 0
Another lender has announced severe foreign investment restrictions amid growing fears about fraud and money laundering
  • Steve McClure | 06 Jun 2016, 11:30 AM Agree 0
    I don't get it. If the issue is verifying employment & ID within the current pricing structure, why not apply an additional fee and take the extra steps to verify? Lenders seem intent on shutting down a large & profitable area of lending, simply because others have. Recent publications revealed these loans have a lower arrears rate, and being 80% LVR or less, they are well secured. It's a niche for a prudent lender.
  • Troy McClure | 09 Jun 2016, 12:01 AM Agree 0
    Consider that LVRs of 80% of less can be achieved by using loan capital from other fraudulent loans. The credit risk is hidden by a merry go round of fraudulent loans between institutions.
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