It was an action-packed year that featured several financial scandals, vital moves on the regulatory front and a hint that a massive third-party shake-up may be on the way.
Bank of Queensland revealed that its “strict credit standards” had prompted the bank to reduce its exposure to the booming Sydney and Melbourne property markets.
Mortgage Business broke the news that a non-major lender had purchased a $1.5 billion portfolio of non-branded mortgages from ING Direct.
ASIC took action against one of the big four banks after it falsely claimed to have the lowest standard variable rate.
The regulator cancelled the Australian financial services licence of Banksia Mortgages, a subsidiary of insolvent firm Banksia Financial Group.
The industry reacted with sadness to the death of Homeloans founder Timothy Holmes, who was hailed as “a giant in the mortgage industry”.
Well-placed sources in the Australian mortgage and property space revealed the magnitude of foreign nationals buying existing property in Australia.
APRA and ASIC struck late in the year when they announced an investigation into interest-only loans, high-LVR lending and investor loans.
The final report of the David Murray-led Financial System Inquiry made waves when it urged the government to prohibit certain SMSF borrowing arrangements.
Mortgage Business revealed that Coles had engaged a third-party distribution specialist to evaluate plans to begin distributing residential mortgages.
The regulator censured Mortgage House after it “inappropriately used an ASIC trademark to sell one of its products”.