ASIC to publish low-doc loan report

The corporate watchdog will soon publish a report on responsible lending, with a particular focus on low-doc home loans.

Speaking at the MFAA conference on the Gold Coast today, ASIC deputy chair Peter Kell announced ASIC’s plans to publish the report.

“This review focuses on the responsible lending conduct of authorised deposit-taking institution (ADI) and non-ADI lenders providing low-doc home loans,” Mr Kell said.

“This report follows on from our earlier reviews of credit assistance providers’ responsible lending conduct.

“We have noticed a number of changes and improvements in the market since we commenced our reviews," he said.

Over the course of its reviews, ASIC noted that licensees are collecting, recording and considering more information about consumers’ financial situation, and their requirements and objectives.

“We have also seen licensees implementing new systems to ensure [the] compliance of their representatives and the reliability of information provided by other third parties,” Mr Kell said.

While our upcoming report focuses on lenders providing low-doc home loans, as with our other reports the findings will be relevant for credit licensees more generally,” he said.

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