Digital Finance Analytics (DFA) Blog
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ASIC says that following an ASIC investigation of Get Approved Finance, a West Australian car finance provider, Esanda has agreed to compensate more than 70 borrowers for car loans organised by Get Approved Finance. ASIC’s investigation found that between 2011 and 2014, over 15 brokers employed by Get Approved Finance engaged in unfair conduct by … Continue reading “Esanda compensates consumers for conduct by finance broker”
All but one of the Murray Financial Systems Inquiry have been accepted by the Government. The report, released today says that this is to ensure the Australian Financial Services system remains safe and secure. This is an important step forwards in the development of the finance sector, and to ensure the interests of consumers are … Continue reading “FSI Recommendations Backed By The Government”
From The Conversation. Last week, Westpac hoisted its lending rate by 20 basis points in a bid to recover the costs of recent capital raisings. There is speculation other banks will follow. Australia’s non-bank lenders could be winners from such a scenario – but the choice may not be as simple as the lowest interest … Continue reading “Rising mortgage rates – is it time to refinance your home loan?”
BOQ has delivered record statutory and cash profit results for the financial year to 31 August 2015, despite strong competition, and funding pressure. Growth in broker originated home loans helped. Statutory profit after tax was up 22% on the prior year to $318 million and was helped by a reduction in impaired assets. As a … Continue reading “Bank of Queensland Delivers Record Result”
Wayne Byres, Chairman APRA, “Banking On Housing“, speech today, portrayed the current state of play with regards to supervision of housing lending. He started by noting that housing lending now accounts for around 40 per cent of banking industry assets, and a little under two-thirds of the aggregate loan portfolio. With such a concentration in … Continue reading “Home Lending More Risky – APRA”
Following the disclosures in the recent bank results that many were above the APRA target of 10% portfolio growth, and their statements they would work to fall within the guideline, we have seen a litany of changes from the banks, which marks an important change in tempo for investment home lending. Regulatory pressure is beginning … Continue reading “Cold Hand Of The Regulator On Bank’s Investment Lending”
DFA research was featured in a recent The Advisor article. Brokers have the mortgage market in the palms of their hands – for now – but will the tech-savvy borrowers of the future always need their help? The Adviser reports. Ask any broker if they can ever see a future in which borrowers go online … Continue reading “Digital Disruption”
The FSI report discusses the alignment of consumer outcomes and financial advice firms, questions “general financial advice” and adviser qualification. The report recommends that the term “general advice” be changed to better reflect what is intended and that the financial adviser or mortgage broker should be required to clearly explain their association with the product … Continue reading “FSI – On Financial Advice”
The final FSI report is out, a 350 page document making 44 core recommendations. They received over 6.800 submissions and met more than 50 financial institutions as part of international consultations. “Australia’s financial system has performed well since the Wallis Inquiry and has many strong characteristics. It also has a number of weaknesses: taxation and … Continue reading “FSI Report Out”
Following its earlier draft, APRA today released a final prudential practice guide for authorised deposit-taking institutions (ADIs) on sound risk management practices for residential mortgage lending. Prudential Practice Guide APG 223 Residential mortgage lending (APG 223) provides guidance to ADIs on addressing housing credit risk within their risk management framework, applying sound loan origination criteria … Continue reading “APRA Releases Final Mortgage Lending Guidance”