Search Results for: mortgage stress

Thousands of Aussies with interest-only mortgages set to struggle: Moody’s

The number of Australians falling behind on their mortgages will rise in the next two years as interest-only loans end and repayments get more expensive, ratings agency Moody’s has warned, via MSN.   Delinquencies on loans that have converted from interest-only to principal and interest are running at double the rate of those still on … Continue reading “Thousands of Aussies with interest-only mortgages set to struggle: Moody’s”

Putting APRA’s Stress Test to the Test

An excellent piece from LF Economics, which chimes with DFA data too by the way (more on that later). APRA’s “stress tests” are merely window dressing. So yesterday APRA came out and said that if unemployment rose to 11%, House prices fell by 35%, and the Chinese economy tanked, that the Australian banking system would … Continue reading “Putting APRA’s Stress Test to the Test”

Mortgage Choice refutes allegations

From The Adviser. Mortgage Choice, the ASX-listed broking group has responded to media criticism regarding a high-sales culture and poor remuneration structures for franchisees, saying that it is working closely with franchisees to assist them in growing their business. Mortgage Choice responded to the reports from the Sydney Morning Herald and the ABC’s 7:30 program, suggesting that its franchise system — which … Continue reading “Mortgage Choice refutes allegations”

Mortgage Choice To Major Overhaul Remuneration Structure

From The Adviser. Mortgage Choice has announced that it has been consulting with its franchisees regarding a new remuneration model “to underpin long-term sustainable growth” and attract “new high-quality businesses to the franchise network”. Subject to discussions with its franchise network and board approval, the new remuneration model would be introduced in the 2019 financial … Continue reading “Mortgage Choice To Major Overhaul Remuneration Structure”

Non Bank Mortgage Lending Accelerates

The RBA have released their credit aggregates to March 2018.  Looking at the month on month movements, total owner occupied lending rose 0.6%, or $6.89 billion to $1,157.8 billion and investor mortgage lending rose 0.17% or $1.03 billion to $590.2 billion.  So overall mortgage lending rose 0.46% in the month, up $7.92 billion (all seasonally … Continue reading “Non Bank Mortgage Lending Accelerates”

The Looming Mortgage Liquidity Crisis

From The Mises Wire. Every 10 years or so there is a banking crisis. We are due. However, the furthest thing from most people’s minds with the Trump boom is a banking/financial crisis, except for a few folks at the Brookings Institution, who just released a paper entitled “Liquidity Crisis in the Mortgage Market.” You Suk … Continue reading “The Looming Mortgage Liquidity Crisis”

Mortgage Arrears on the rise in early 2018

From Australian Broker. Employment conditions may be improving across the country but it seems many Australian lenders are still on shaky ground after recent data reported a rise in home loan arrears rose in January. The Standard & Poor’s Performance Index (SPIN) for Australian prime mortgages increased to 1.30% from 1.07% in December 2017, according … Continue reading “Mortgage Arrears on the rise in early 2018”

The Mortgage Industry Omnishambles – The Property Imperative 17 March 2018

Today we examine the Mortgage Industry Omnishambles. And it’s more than just a flesh wound! Welcome to the Property Imperative Weekly to 17th March 2018. Watch the video, or read the transcript. In this week’s review of property and finance news we start with the latest January data from the ABS which shows lending for … Continue reading “The Mortgage Industry Omnishambles – The Property Imperative 17 March 2018”

Did You Know How Big The IO Mortgage Book Is?

OK, so there has been lots of noise about the Mortgage Interest Only Exposures the banks have, and both APRA and the RBA say they are potentially risky, compared with Principal and Interest Loans. We already showed that conservatively $60 billion of IO loans will fail current underwriting standards.   That is more than 10% of … Continue reading “Did You Know How Big The IO Mortgage Book Is?”