The struggle to find some clarity on responsible lending laws feels like something of a sideshow following this week’s news that borrowers have regained their mojo after sitting on the sidelines for 18 months as house prices fell precipitously.
. ASIC had argued that the bank had relied on the use of the Household Expenditure Measure to assess borrower’s ability to pay interest on their loan. But it stopped short of being overly prescriptive on how the lender assesses this. The now famous remarks by the Federal Court’s Justice Nye Perram that borrowers can spend more frugally by cutting back on eating wagyu and drinking cheaper Shiraz encapsulated his views that a borrower’s spending history is not a reliable predictor of future spending behaviour.
But behind the headline-grabbing struggle between Westpac and the regulator following criticisms on lax lending during the Hayne royal commission is the emergence of a shifting landscape for home borrowers.house prices, particularly in Melbourne and Sydney, had bounced strongly in August July housing finance approvals were up by a surprisingly bullish 5.1 per cent and most of this was driven owner-occupiers. Loans to this segment grew 4.2 per cent against economists’ expectations of a 1.5 per cent lift.Westpac economist Matthew Hassan said industry data had pointed to a more modest gain in July. He now thinks that the big improvement in the July number suggests the lending growth is coming from outside the big four banks.In value terms, the $19.
EKnightOfficial they must compete with the population ponzi
EKnightOfficial Who cares, just saddle Australians with more debt. The more the better. What can go wrong?...
EKnightOfficial Except no one can get a loan, because everyone has contract and temp jobs now.
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ASIC appeals Westpac's responsible lending court winThe corporate regulator is appealing a landmark Federal Court ruling in favour of Westpac that validated the bank's automated home loan approval process for hundreds of thousands of mortgages.
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