Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Brokers urged to cash in on APRA ‘jawboning’

A mortgage broking association has urged its members to capitalise on APRA’s recent criticism of bank lending practices.

FBAA chief executive Peter White said brokers now had an opportunity to differentiate themselves from banks, after the prudential regulator warned last week that some banks are engaging in “less-than-prudent” mortgage practices.

“Finance brokers have been rigorously checked year after year and, through the NCCP, industry compliance and regulatory standards have never been better,” he said.

Advertisement
Advertisement

“Unlike some of the banks, brokers follow rigid instruction for lending procedures. They look at the total capability to repay and service the debt and fully abide by responsible lending practices.”

Mr White said one big difference between banks and brokers is that the latter offer personalised service.

This is a message that brokers should continually deliver to consumers, he added.

Mr White’s advice comes after APRA chairman Wayne Byres warned last week “the current economic environment for housing lenders is characterised by heightened levels of risk”.

That is due to a combination of low interest rates, significant house price growth, high household debt, subdued income growth, rising unemployment and strong competitive pressures, he said.

“Many of these features have been emerging over a number of years, and APRA’s supervision has been intensifying in response,” he said.

Mortgage brokers were responsible for 51.9 per cent of new home lending in the March quarter, according to the industry’s other broker association, the MFAA.

Brokers urged to cash in on APRA ‘jawboning’
mortgagebusiness

Latest News

Residential property prices are set to exceed their 2017 peak in the coming months, but conservatism from mortgage-holders would likely stun...

The level of refinancing activity has dipped across both the owner-occupied and investor segments of the mortgage market, according to the l...

The neobank has closed a Series C equity funding round, reportedly surpassing its target by $10 million. ...

FROM THE WEB
podcast

LATEST PODCAST: New government loans and grants for SMEs

Do you think Australia will move to quantitative easing this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.