PROPOSED CHANGES TO THE RISK-WEIGHTING OF RESIDENTIAL MORTGAGE LENDING DISCUSSION PAPER
|
|
- Bartholomew Hicks
- 8 years ago
- Views:
Transcription
1 PROPOSED CHANGES TO THE RISK-WEIGHTING OF RESIDENTIAL MORTGAGE LENDING DISCUSSION PAPER November 2003
2 TABLE OF CONTENTS Summary. 2 Background 3 Treatment of Low Doc Loans The use of brokers and other channels 5 Proposed approach... 6 Non Conforming Lending 7 Changes to Prudential Standards.. 7 Implementation Timetable. 8 1
3 Summary For capital adequacy purposes, most loans made by an Authorised Deposit-taking Institution (ADI) are assigned a risk-weight of 100 per cent. However, loans to an individual borrower for housing or other purposes which are fully secured by registered mortgage over a residential property are assigned a concessional riskweight of 50 per cent, provided certain criteria are satisfied. These criteria are set out in Attachment C of AGN Risk-Weighted On-Balance Sheet Credit Exposures. This concession is based upon the very low loss rates historically associated with mortgage lending in Australia. These low losses reflect the fact that conventional mortgage lending by ADIs has involved them undertaking a comprehensive assessment of the ability of the borrower to service the loan as well as ensuring that the property is appropriately valued. In the past two years, lenders outside the ADI sector have begun to offer loans written with considerably less than the normally required documentation and checking of income and serviceability. These products are usually referred to as Low Doc loans. As this market has expanded, ADIs have responded by offering similar products. There has also been an increasing tendency for ADIs to offer loans originated via mortgage brokers and other third-party channels. In some cases, ADIs are accepting the assessments done by those referring the borrower to them (and not verifying the borrower information itself) and are placing greater focus on the security underlying the loan rather than the ability of the borrower to repay the loan. While it is too early to assess the risk of loss on these non-conventional loans, it should be remembered that the market for these loans has expanded at a time when housing prices have risen significantly and interest rates have been very low. Many of the loans are also at relatively high loan-to-valuation ratios. Experience overseas indicates that these loans have a higher default rate than conventional home loans and ratings agencies have factored this into their assessments of mortgage-backed securities which include Low Doc loans in the securitised portfolio. 2
4 APRA is concerned that the current risk-weightings on loans for which the borrowers servicing ability is not verified do not adequately reflect the likelihood of increased risk. The current prudential standard on the capital treatment of residential mortgage lending gives little guidance on the criteria necessary for lending to qualify for the concessional risk-weighting. Given its concerns about the potential risk involved in Low Doc lending and the increased use of brokers and other channels, APRA considers it necessary to specify more fully the lending criteria that need to be met in order to qualify for the 50 per cent risk-weighting. This will provide an overarching framework for assessing the appropriate risk-weighting to be applied to mortgage lending. APRA does not intend to examine specific products on an individual basis other than in exceptional cases. Background The current guidance on the lending criteria required to qualify for the 50 per cent risk-weighting states that an ADI must have been involved directly in making credit assessments of individual borrowers, including the valuations of the associated residential properties secured by mortgage 1. Over the last two years, ADIs and non-regulated lenders have introduced low documentation (Low Doc) loans to cater for customers who are unable or unwilling to fulfil the normal income verification procedures required under conventional lending practices. The latter usually involves ADI s obtaining income information (such as salary slips and tax return information). In the case of Low Doc loans, however, borrowers are only required to self-declare their income levels and/or servicing ability and the lender does not seek to verify the information. Lenders view the Low Doc product as an opportunity to fill a perceived gap in their product range that would be attractive to self-employed and other borrowers with 1 Paragraph 2 of Attachment C of AGN
5 residential property as security. These loans also earn a higher margin than conventional home loans. Earlier this year, APRA surveyed a number of ADIs, lenders mortgage insurers and non-regulated loan providers regarding their experience with Low Doc lending. The survey indicated that: in the majority of cases, Low Doc loans are allowed for investment properties as well as owner-occupation; while Low Doc loans are used largely for the purchase or refinancing of residential property, most lenders do not necessarily exclude lending for business purposes; the maximum loan-to-valuation ratio (LVR) is 80 per cent for most lenders; while a number of lenders require lenders mortgage insurance on all Low Doc loans, others require this only beyond a given LVR; the majority of lenders require full valuations of the property; the loan limit is generally $750,000 or less; and the margins over the standard interest rate on mortgage lending range up to one percentage point. Treatment of Low Doc Loans APRA s view on Low Doc loans is that, since the potential borrower does not provide income details, and the lender does not verify the borrower s self-declared income levels and/or self-declared servicing ability, these loans do not comply with the intent of paragraph 2 of Attachment C of AGN At the time this prudential standard was introduced, it was intended to apply only to conventional home loans. As a result, Low Doc loans should not in APRA s view automatically qualify for the concessional 50 per cent risk-weight on lending for housing. 4
6 While there is insufficient Australian data at this stage to determine the loss rates on Low Doc loans, overseas evidence suggests that these loans experience a substantially higher default rate than conventional loans. Rating agencies also reflect a higher default rate in residential mortgage-backed securities programmes containing Low Doc loans. The fact that ADIs generally set lower LVR limits on Low Doc loans and use lenders mortgage insurance at lower LVRs than conventional loans, as well as charge a margin over the standard residential mortgage rate, also implies that ADIs themselves consider that a greater risk attaches to these loans. The use of brokers and other channels APRA has become aware that, with the increased use of brokers and other channels to originate loans, some ADIs are relying on broker valuations or income checking when providing a home loan. APRA considers that the ADI itself must be responsible for deciding the criteria to be used in making the decision to lend. It is extremely important that the use of third parties in the lending process does not adversely impact upon compliance with the ADI s lending criteria. APRA is of the view that any use of a third party in the credit decision should only be allowed where the ADI s credit assessment requirements are clearly specified and the relationship is managed in accordance with ADI Prudential Standard APS Outsourcing. In particular, there should be a formal agreement in place that covers: the criteria that are to be used in making the decision to lend; audit and monitoring procedures; pricing and fee structure; dispute resolution arrangements; and confidentiality, privacy and security of information. The use of brokers as a home loan distribution channel is not of itself a prudential concern. The prudential issue is the use of broker-originated information without the ADI independently verifying the data in the home loan application. 5
7 Proposed approach Currently, all ADIs risk-weight their Low Doc loans at 50 per cent based on the underlying residential property security for the loans. APRA proposes to expand the criteria set out in AGN to ensure that the 50 per cent risk-weighting is not applied to potentially higher risk lending such as Low Doc lending and brokeroriginated lending unless the ADI has independently assessed critical information in respect of the borrower. Where the ADI has not carried out an independent assessment, housing lending would only qualify for the concessional 50 per cent risk-weighting if stricter LVR criteria are met. As the risk of loss on these loans is dependent on the LVR, APRA does not believe it would be appropriate to apply a 100 per cent risk-weighting for loans for which serviceability is not independently assessed, but which have low LVRs. While there are insufficient data to determine statistically what the appropriate LVR should be to qualify for the concessional risk-weighting, APRA believes that it should be much lower than the current figure of 80 per cent applying to loans that meet the income/serviceability tests. Conventional loans with LVRs greater than 80 per cent are not eligible for the concessional risk-weighting unless they are fully mortgage insured through an acceptable lenders mortgage insurer. APRA is proposing that loans for which serviceability is not independently assessed but which have an LVR of 60 per cent or less would be eligible for the concessional risk-weight. This figure may be revised once a run of loss data on these loans becomes available. For similar reasons, loans for which serviceability is not independently assessed but which are fully mortgage insured would be eligible for the concessional risk-weight. APRA s proposed approach is to set out high-level criteria that allow each ADI to put in place a policy appropriate to its circumstances. This approach will impact on Low Doc loans as well as other potential loan products that fail to meet the criteria for a 6
8 fully assessed loan. The assessment of compliance with these criteria, and hence eligibility for the concessional 50 per cent risk-weight is, in the first instance, a matter for the ADI, with the ADI auditor having primary responsibility for reviewing compliance. Where appropriate, APRA will also check compliance in its on-site reviews. Non Conforming Lending Non conforming lending involves borrowers who could not normally qualify for a conventional home loan. APRA is unaware of any ADI engaging in non conforming lending; this is a specialist industry sector pursued by unregulated lenders. Any non conforming loans advanced by ADIs will attract a 100 per cent risk-weight. Changes to Prudential Standards APRA is proposing to substitute the existing paragraph 2 of Attachment C AGN with the revised paragraph 2 below. ADIs will need to ensure that they comply with these revised lending criteria before the loans originated by them are eligible for the concessional 50 per cent risk-weighting. 2 (a) An ADI must have procedures in place to assess the ability of potential borrowers to meet repayment obligations. These criteria must be documented as part of an ADI s Lending/ Credit Policy and Procedures Manual. (b) An ADI must have in place verification procedures to substantiate critical application data provided by the borrower. These should include verifying income documentation sufficient for an ADI to make an assessment of the repayment capacity of the borrower. All material income sources and employment details of the borrower must be assessed by the ADI prior to loan approval, and documented as part of the loan origination and approval process. (c) Where an ADI accepts the purchase price, or other means of valuation, as being an indication of value of the residential property (in lieu of a formal 7
9 valuation), it must detail the criteria used to justify this use in its Lending/ Credit Policy and Procedures Manual. (d) Where an ADI requires a formal valuation for a home loan, all residential properties securing the loan must be subjected to an independent valuation. Valuations must be carried out by an accredited valuer nominated by the ADI in respect of each residential property offered as security. (e) Loans will only be eligible for the concessional risk-weighting where they are secured against properties zoned residential or where the ADI can demonstrate the marketability of the property would be of a similar nature to properties with such zoning. (f) A 100 per cent risk-weighting will be assigned to loans that do not fulfil the criteria set out above unless (1) the LVR at origination is 60 per cent or less or (2) the loan is fully mortgage insured with a mortgage insurer rated at least A, in which case the risk-weighting will be 50 per cent. (g) Where an ADI outsources any part of the credit process to a third party, the arrangement must comply with APS Outsourcing. ADIs should undertake due diligence on the third parties they use to make any lending decisions or that undertake assessments of borrower information on their behalf. There should be a formal agreement in place with the third party that specifies the criteria that are to be used in approving the loan and audit and monitoring procedures should be in place to ensure that the lending criteria are met at all times. Implementation Timetable APRA welcomes comments on the proposed changes from ADIs and other interested parties. These comments should be submitted in writing by 30 January 2004 to: 8
10 Mr Lawrence Lim Manager, Credit Risk, Policy Research & Consulting Division Australian Prudential Regulation Authority GPO Box 9836 SYDNEY NSW 2001 Alternatively, comments may be submitted electronically to by 30 January The intended date for implementation of changes to the prudential standard is 1 July
Guidance Note AGN 112.1 Risk-Weighted On-Balance Sheet Credit Exposures
Guidance Note AGN 112.1 Risk-Weighted On-Balance Sheet Credit Exposures Attachment C Eligible Residential Mortgages For capital adequacy purposes, a loan for housing or other purposes to an individual
More informationJOINT RBA-APRA SUBMISSION TO THE INQUIRY INTO HOME LENDING PRACTICES AND PROCESSES
JOINT RBA-APRA SUBMISSION TO THE INQUIRY INTO HOME LENDING PRACTICES AND PROCESSES Introduction This submission brings together the factual material available to the Reserve Bank of Australia and APRA
More informationAPRA s Perspective on the Residential Mortgage Lending Market. Submission to the House of Representatives Standing Committee on Economics
APRA s Perspective on the Residential Mortgage Lending Market Submission to the House of Representatives Standing Committee on Economics 18 July 2008 Purpose This submission provides APRA s perspective
More informationStatistics. Quarterly Authorised Deposit-taking Institution Property Exposures. March 2014 (released 27 May 2014)
Statistics Quarterly Authorised Deposit-taking Institution Property Exposures March 2014 (released 27 May 2014) www.apra.gov.au Australian Prudential Regulation Authority Copyright Australian Prudential
More informationObjective and key requirements of this Prudential Standard
Prudential Standard CPS 231 Outsourcing Objective and key requirements of this Prudential Standard This Prudential Standard requires that all outsourcing arrangements involving material business activities
More informationCapital Adequacy: Asset Risk Charge
Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital
More informationPrudential Practice Guide
Prudential Practice Guide PPG 231 Outsourcing October 2006 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice guide is not legal advice and users
More informationLow Doc Home Loan Product Specification
Low Doc Home Loan Product Specification For further information www.partners.stgeorge.com.au Mortgage Central 1300 137 532 This product specification is the property of St.George Bank. It is for the use
More informationGRF_116_1 Probable Maximum Loss for LMIs - Standard Loans
GRF_116_1 Probable Maximum Loss for LMIs - Standard Loans These instructions must be read in conjunction with the general instruction guide. Explanatory notes Standard loan A standard loan is one which
More informationResidential Mortgage Underwriting Guideline
Residential Mortgage Underwriting Guideline BC CREDIT UNIONS JANUARY 2015 www.fic.gov.bc.ca INTRODUCTION The Residential Mortgage Underwriting Guideline (guideline) outlines the Financial Institutions
More informationAustralian Finance Centre Pty Ltd FACT FIND SHEET
Australian Finance Centre Pty Ltd Australian Credit License 390436 Prepared by : Andrew Salsbury Date prepared: Phone : (07) 556357227 Fax : 1300 905379 Email: andrew@australianfinancecentre.com.au ABN
More informationDraft Prudential Practice Guide
Draft Prudential Practice Guide APG 223 Residential Mortgage Lending May 2014 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice guide is not legal
More informationMacquarie Prime Loan Facility
Macquarie Prime Loan Facility Product Disclosure Statement Contents Section 1 - About Macquarie Bank Limited and the Macquarie Prime Loan Facility 1 Section 2 - Benefits of a Macquarie Prime Loan Facility
More informationSydney Wyde Mortgage Fund ARSN 108 342 123
Sydney Wyde Mortgage Fund ARSN 108 342 123 Benchmarks and Disclosure Principles Report for ASIC Regulatory Guide 45 as at 30 June 2015 The following report describes each of the benchmarks and disclosure
More informationSummary of submissions and final policy position on capital requirements for reverse mortgage loans, QRRE and the FIRB approach in BS2A and BS2B
Summary of submissions and final policy position on capital requirements for reverse, QRRE and the FIRB approach in BS2A and BS2B Please note that this is not a consultation document. 21 August 2015 1.
More information(refer AGN 112.1 Standardised Approach to Credit Risk: Riskweighted
Guidance Note AGN 112.2 Standardised Approach to Credit Risk: Risk-weighted Off-balance Sheet Credit Exposures 1. This Guidance Note and its Attachments set out the procedures and requirements for calculating
More informationPOLICY POSITION PAPER ON THE PRUDENTIAL TREATMENT OF CAPITALISED EXPENSES
POLICY POSITION PAPER ON THE PRUDENTIAL TREATMENT OF CAPITALISED EXPENSES RESULTS OF A SURVEY OF AUTHORISED DEPOSIT-TAKING INSTITIONS, UNDERTAKEN BY THE AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY June
More informationGuidelines. ADI Authorisation Guidelines. www.apra.gov.au Australian Prudential Regulation Authority. April 2008
Guidelines ADI Authorisation Guidelines April 2008 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright These guidelines are not legal advice and users are encouraged to
More informationREPORT ON BROKER ORIGINATED LENDING
REPORT ON BROKER ORIGINATED LENDING RESULTS OF A SURVEY OF AUTHORISED DEPOSIT-TAKING INSTITIONS, UNDERTAKEN BY THE AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY JANUARY 2003 Anoulack Chanthivong Anthony D.
More informationCapital Adequacy: Internal Ratings-based Approach to Credit Risk
Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk Objective and key requirements of this Prudential Standard This Prudential Standard is directed at ensuring
More informationRegulatory impact assessment on capital requirements for reverse mortgage loans
Regulatory impact assessment on capital requirements for reverse mortgage loans 28 October 2015 2 Agency disclosure statement 1. This Regulatory Impact Statement (RIS) has been prepared by the Reserve
More informationMORTGAGE & FINANCE BROKERS ADDENDUM
MORTGAGE & FINANCE BROKERS ADDENDUM 1. Please provide a breakdown of the Total Gross Income derived by all proposed insureds (including fees and commissions) between the following activities: Fees Earned
More informationDRAFT September 2007. specified in the ADI s IRB approval, application of the FIRB approach to one or more of its SL sub-asset classes.
Reporting Form ARF 113.0E FIRB Specialised Lending Instruction Guide This instruction guide is designed to assist in the completion of the FIRB Specialised Lending form. This form captures the credit risk-weighted
More informationDRAFT May 2012. Objective and key requirements of this Prudential Standard
Prudential Standard GPS 230 Reinsurance Management Objective and key requirements of this Prudential Standard This Prudential Standard requires a general insurer and a Level 2 insurance group to maintain,
More informationMORTGAGE & FINANCE BROKERS ADDENDUM
MORTGAGE & FINANCE BROKERS ADDENDUM 1. Please provide a breakdown of the Total Gross Income derived by all proposed insureds (including fees and commissions) between the following activities: Fees Earned
More informationASSET FINANCE APPLICATION.
ASSET FINANCE APPLICATION. For all enquiries please contact us on 1300 658 108 Mon to Fri 9am-5pm (Melbourne time) or email us at business@mebank.com.au Visit mebank.com.au Please complete this form and
More informationFramework for Restrictions on High-LVR Residential Mortgage Lending
Framework for Restrictions on High-LVR Residential Mortgage Lending Prudential Supervision Department Document Issued: 2 Part 1 Introduction 1. Objectives for residential mortgage lending restrictions
More informationReview of interest-only home loans
REPORT 445 Review of interest-only home loans August 2015 About this report This report is for holders of Australian credit licences (credit licensees) and highlights the importance of responsible lending
More informationLoan Application Checklist
22 Delhi Street West Perth WA 6005 PO Box 710 West Perth WA 6872 Tel: 1800 629 948 Fax: 1800 002 881 www.afghomeloans.com.au Loan Application Checklist ALL APPLICATIONS Completed and signed application
More informationBusiness Continuity Management
Prudential Standard CPS 232 Business Continuity Management Objective and key requirements of this Prudential Standard The ultimate responsibility for the business continuity of an APRA-regulated institution
More informationPlease find attached an announcement and supplementary information for release to the market.
QBE INSURANCE GROUP LIMITED ABN 28 008 485 014 Head Office 82 Pitt Street Sydney NSW 2000 AUSTRALIA 14 August 2008 The Manager Company Announcements ASX Limited Level 6 Exchange Centre 20 Bridge Street
More informationBank of Queensland Limited
APRA 30 April 2012 The Basel II Capital Accord principles took effect in Australia on 1 January 2008. The framework for the application of Basel II in Australia is comprised of three pillars: Pillar 1:
More informationAustralian Prudential Regulation Authority. Protecting Australia s depositors, insurance policyholders and superannuation fund members
Australian Prudential Regulation Authority Protecting Australia s depositors, insurance policyholders and superannuation fund members APRA s vision is to be a world-class integrated prudential supervisor
More informationMICRO AND MACROPRUDENTIAL PERSPECTIVES: THE AUSTRALIAN EXPERIENCE
MICRO AND MACROPRUDENTIAL PERSPECTIVES: THE AUSTRALIAN EXPERIENCE JOHN LAKER Chairman Australian Prudential Regulation Authority Background I am delighted to address this Conference on macroprudential
More informationProfessional Indemnity Insurance and optional Public & Products Liability
Advantedge Members (Incorporating PLAN, FAST and CHOICE Members) Professional Indemnity Insurance and optional Public & Products Liability Proposal form 2014-2015 Please return completed proposal form
More informationPurchase and Supply of Assets (including Securities Issued by Special Purpose Vehicles)
Guidance Note AGN 120.3 Purchase and Supply of Assets (including Securities Issued by Special Purpose Vehicles) 1. This Guidance Note details the clean sale requirements when an authorised deposit-taking
More informationGE Capital Finance Australia APS 330: Public Disclosure of Prudential Information December 2013 (AUD $ million)
December 2013 (AUD $ million) Important Notice This document has been prepared to meet the disclosure obligations under the Australian Prudential Regulation Authority (APRA) APS 330 Capital Adequacy: Public
More informationCapital Adequacy: Measurement of Capital
Prudential Standard APS 111 Capital Adequacy: Measurement of Capital Objective and key requirements of this Prudential Standard For capital adequacy purposes, authorised deposit-taking institutions must
More informationManaging Outsourcing Arrangements
Guidance Note GGN 221.1 Managing Outsourcing Arrangements 1. This Guidance Note provides further detail on the requirements for managing material outsourcing arrangements (refer Prudential Standard GPS
More informationIntroductory Fixed Rate Home Loan Product Specification
Introductory Fixed Rate Home Loan Product Specification For further information www.partners.stgeorge.com.au Mortgage Central 1300 137 532 This product specification is the property of St.George Bank.
More informationAPRA DRAFT PRUDENTIAL PRACTICE GUIDE ON RESIDENTIAL MORTGAGE LENDING
NATIONAL/NSW SECRETARIAT PO Box 604 Neutral Bay NSW 2089 Telephone 1300 554 817 Facsimile 02 9967 2896 Email enquiries@mfaa.com.au www.mfaa.com.au APRA DRAFT PRUDENTIAL PRACTICE GUIDE ON RESIDENTIAL MORTGAGE
More informationBusiness Continuity Management
Prudential Standard CPS 232 Business Continuity Management Objective and key requirements of this Prudential Standard This Prudential Standard requires each APRA-regulated institution to implement a whole-of-business
More informationInternal Ratings-based Approach to Credit Risk: Purchased Receivables
Guidance Note AGN 113.4 Internal Ratings-based Approach to Credit Risk: Purchased Receivables 1. This Guidance Note sets out the method of calculating the unexpected loss (UL) regulatory capital requirement
More informationCredit licensing: Responsible lending conduct
REGULATORY GUIDE 209 Credit licensing: Responsible lending conduct November 2014 About this guide This is a guide for credit licensees, credit applicants and unlicensed carried over instrument lenders
More informationSMSF Property Loans Online Product Training
SMSF Property Loans Online Product Training Contents 01 SMSFs and borrowing 02 Responsibilities and licensing 03 Product overview and features 04 Fees 05 Credit policy 06 Case study 07 Next steps 01 SMSFS
More informationGuy Debelle: The state of the mortgage market
Guy Debelle: The state of the mortgage market Address by Mr Guy Debelle, Assistant Governor of the Reserve Bank of Australia, at the Mortgage Innovation Conference, Sydney, 30 March 2010. * * * I thank
More informationNZQA Expiring unit standard 26286 version 2 Page 1 of 5
Page 1 of 5 Title Demonstrate knowledge of the mortgage industry, lending principles, home loan products and apply the application process Level 4 Credits 5 Purpose People credited with this unit standard
More informationBUSINESS LOAN APPLICATION FORM.
BUSINESS LOAN APPLICATION FORM. For any enquiries contact us on 1300 658 108 Mon to Fri 9am-5pm (AEST/AEDT) Mail to New Accounts - Business Banking, ME Bank, Reply Paid 1345, Melbourne, Victoria 8060.
More informationInvesting in mortgage schemes?
Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about
More informationBasel III Pillar 3 CAPITAL ADEQUACY AND RISK DISCLOSURES AS AT 30 SEPTEMBER 2014
Basel III Pillar 3 CAPITAL ADEQUACY AND RISK DISCLOSURES AS AT 30 SEPTEMBER 2014 COMMONWEALTH BANK OF AUSTRALIA ACN 123 123 124 5 NOVEMBER 2014 1 Scope of Application The Commonwealth Bank of Australia
More informationSHORT TERM FINANCE. Australian Bridging Finance. Consumer Loan Application Form. Introducer. Company name. Contact details
Australian Bridging Finance SHORT TERM FINANCE Consumer Loan Application Form Introducer Company name Contact details Business phone: Business fax: Business email: BORROWERS DETAILS INDIVIDUAL Surname
More informationFramework for Restrictions on High-LVR Residential Mortgage Lending
Framework for Restrictions on High-LVR Residential Mortgage Lending Prudential Supervision Department Document Issued: 2 Part 1 Introduction 1. Objectives for residential mortgage lending restrictions
More informationFees we charge for consumer mortgage lending products
s we charge for consumer mortgage lending products Effective February 2016 Section 1: Understanding fees and charges When we may charge fees The Commonwealth Bank charges fees for administering your account
More informationDiscussion Paper. Maximum Event Retention for Lenders Mortgage Insurers. www.apra.gov.au Australian Prudential Regulation Authority.
Discussion Paper Maximum Event Retention for Lenders Mortgage Insurers September 2008 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice guide
More informationFor personal use only. FSA Group Interim Results Six month period ending 31 December 2010 February 2011
Interim Results Six month period ending 31 December 2010 February 2011 Client acquisition Direct client acquisition model Clients are micro-managed efficiently Via advertising and marketing TV, web etc.
More informationReporting Form ARF 392.0 Housing Finance Instruction Guide
Reporting Form ARF 392.0 Housing Finance Instruction Guide The purpose of this survey is to provide monthly statistics on the provision of secured finance to individuals for owner-occupied housing. The
More informationHow does Barnes collect and hold personal information?
Barnes Mortgage Management Pty Ltd ACN 061 590 341 Australian Credit Licence 384 156 Ground Floor, 132 Lutwyche Road (Corner Nicholas Street), Windsor, QLD, 4030 Tel: 07 3622 2400 Fax: 07 3357 9436 Privacy
More informationCREDIT CARD ISSUERS AND ACQUIRERS NEW ENTRANTS WHAT EFFECT HAVE THE NEW AUTHORISATION STANDARDS AND GUIDELINES HAD SO FAR?
CREDIT CARD ISSUERS AND ACQUIRERS NEW ENTRANTS WHAT EFFECT HAVE THE NEW AUTHORISATION STANDARDS AND GUIDELINES HAD SO FAR? GREG BRUNNER General Manager, Policy Development Australian Prudential Regulation
More informationJuly 2012. Objectives and key requirements of this Prudential Standard
Prudential Standard CPS 510 Governance Objectives and key requirements of this Prudential Standard The ultimate responsibility for the sound and prudent management of an APRA-regulated institution rests
More informationFINANCIAL SYSTEM INQUIRY: LENDERS MORTGAGE INSURANCE
Mr David Murray AO Chair Financial System Inquiry GPO Box 89 SYDNEY NSW 2001 26 August 2014 Dear Mr Murray FINANCIAL SYSTEM INQUIRY: LENDERS MORTGAGE INSURANCE The Insurance Council of Australia 1 (Insurance
More informationFIIG ESSENTIALS GUIDE. Residential Mortgage Backed Securities
FIIG ESSENTIALS GUIDE Residential Mortgage Backed Securities Introduction Residential Mortgage Backed Securities (RMBS) are debt securities that are secured by a pool of home loans. RMBS are a subset
More informationBASEL III PILLAR 3 CAPITAL ADEQUACY AND RISKS DISCLOSURES AS AT 30 SEPTEMBER 2015
BASEL III PILLAR 3 CAPITAL ADEQUACY AND RISKS DISCLOSURES AS AT 30 SEPTEMBER 2015 COMMONWEALTH BANK OF AUSTRALIA ACN 123 123 124 5 NOVEMBER 2015 This page has been intentionally left blank Introduction
More informationRetail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement
Retail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement Preparation Date: 31 July 2015 Westpac Banking Corporation ABN 33 007 457 141 AFSL 1 and Australian credit licence
More informationRetail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement
Retail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement Preparation Date: 31 July 2015 Westpac Banking Corporation ABN 33 007 457 141 AFSL 1 and Australian credit licence
More informationGuidance Note AGN 520.1
Guidance Note AGN 520.1 Fit and Proper Requirements Definition of a responsible person 1. The definitions of responsible persons cover those persons whose conduct is most likely to have significant implications
More information2.1 Certain words have special meanings when used in this Privacy Policy. These are shown below.
1. OUR COMMITTMENT 1.1 In handling your personal information, Maleny Credit Union (ABN 52 087 650 995) and its controlled entities ( MCU / credit union / we / us ) are committed to complying with the Australian
More informationThe business now helps customers Australia wide. We assist customers with Residential, Business, Commercial and Chattel Mortgages, and also Leasing.
Priority Home Loans was established in 2001 by Bryan and Lorraine Coleman. Priority Home Loans has helped many people into new and established homes over that time. Our aim is to provide you with a professional
More informationCOMMERCIAL ASSET FINANCE BROKERS ASSOCIATION OF AUSTRALIA LIMITED PROFESSIONAL INDEMNITY INSURANCE PROPOSAL FORM
COMMERCIAL ASSET FINANCE BROKERS ASSOCIATION OF AUSTRALIA LIMITED PROFESSIONAL INDEMNITY INSURANCE PROPOSAL FORM IMPORTANT FACTS RELATING TO THIS PROPOSAL FORM The Purpose of this Proposal Form is to set
More informationForeign Exchange Forward Transactions for the nabtrade Global Market Trading service Product Disclosure Statement
Foreign Exchange Forward Transactions for the nabtrade Global Market Trading service Product Disclosure Statement Issued by National Australia Bank Limited (NAB) ABN 12 004 044 937, AFSL 230686 Effective
More informationObjective and key requirements of this Prudential Standard
Prudential Standard CPS 520 Fit and Proper Objective and key requirements of this Prudential Standard This Prudential Standard sets out minimum requirements for APRA-regulated institutions in determining
More informationNon-Bank Deposit Taker (NBDT) Capital Policy Paper
Non-Bank Deposit Taker (NBDT) Capital Policy Paper Subject: The risk weighting structure of the NBDT capital adequacy regime Author: Ian Harrison Date: 3 November 2009 Introduction 1. This paper sets out,
More informationAPG 223 Residential Mortgage Lending. 5 November 2014
APG 223 Residential Mortgage Lending 5 November 2014 Disclaimer and Copyright This prudential practice guide is not legal advice and users are encouraged to obtain professional advice about the application
More informationclear Retail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement
clear Retail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement Preparation Date: 12 January 2015 Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit
More informationCUA Group APP Privacy & Credit information Policy
For more information: Call 133 282 Visit www.cua.com.au Drop into your local branch CUA Group APP Privacy & Credit information Policy 1 August 2015 Credit Union Australia Limited ABN 44 087 650 959 AFSL
More informationFees we charge for consumer mortgage lending products
s we charge for consumer mortgage lending products Effective July 2015 Section 1: Understanding fees and charges When we may charge fees The Commonwealth Bank charges fees for administering your account
More informationFSA Group AGM Presentation 18 November 2010
FSA Group AGM Presentation 18 November 2010 Agenda 1. Chairman s address 2. Executive Director s address 3. Ordinary business 2 Chairman s address FY2010 another successful year Business impacted by unusual
More informationPolice Financial Services Limited Copyright exists in this document Privacy Policy 1
Privacy January 2015 Policy Police Financial Services Limited ABN 33 087 651 661 ('we', 'us', 'our', BankVic ) is bound by the Australian Privacy Principles under the Privacy Act 1988 (Cth) (Privacy Act).
More informationIMPORTANT NOTICE PLEASE READ THE FOLLOWING ADVICE BEFORE PROCEEDING TO COMPLETE THIS PROPOSAL FORM
IMPORTANT NOTICE PLEASE READ THE FOLLOWING ADVICE BEFORE PROCEEDING TO COMPLETE THIS PROPOSAL FORM Your Professional Indemnity Insurance Policy is issued on a CLAIMS MADE basis. This means that this policy
More informationhome loan basics Find the home loan that s perfect for you
home loan basics Find the home loan that s perfect for you 2 3 Contents Your mortgage broker 3 Using the services of a mortgage broker 4 Types of home loans 6 Home loans Features and options 12 Borrowing
More informationApplication for a Banking Authority Foreign Bank Branches Prudential Statement J2
Application for a Banking Authority Foreign Bank Branches Prudential Statement J2 PS J2 Introduction 1. A foreign bank wishing to operate as a branch in Australia must obtain a banking authority issued
More informationBasic Home Loan Product Specification
Basic Home Loan Product Specification For further information www.partners.stgeorge.com.au Mortgage Central 1300 137 532 This product specification is the property of St.George Bank. It is for the use
More informationMacquarie Mortgages Application for Finance
Macquarie Mortgages Application for Finance New application (stand-alone deal) Variation Principal increase Personal Details Applicant 1 Personal Details Applicant 2 Borrower Guarantor (please tick one
More informationPRIVACY NOTICE AND CONSENT
Australian Credit Licence Number 387406 PRIVACY NOTICE AND CONSENT This privacy notice and consent relates to an application (the application) you make to a mortgage manager for a loan (your loan) or in
More informationR E S S R E L E A S E MORTGAGE BROKING
P MORTGAG BROKING R R L Low-doc New business is finally measured now $8.8 billion in annual Low-doc lending stems from 26% growth on previous year FINAL RLA Press embargoed for 12.00am unday 28 October
More informationprivacy and credit reporting policy.
privacy and credit reporting policy. ME, we, us or our refers to Members Equity Bank Ltd and its subsidiary ME Portfolio Management Ltd. about ME Every Australian deserves to get the most out of their
More informationSandhurst Select Mortgage Fund
Sandhurst Select Mortgage Fund Product Disclosure Statement Date 17 August 2015 The responsible entity and issuer of the Fund is Sandhurst Trustees Limited, ABN 16 004 030 737 AFSL 237906, a subsidiary
More informationRetail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement
Retail and Business Banking Financial Services Guide, Credit Guide and Privacy Statement Preparation Date: 31 July 2015 St.George Bank - A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL
More informationMonetary Authority of Singapore THEMATIC INSPECTION OF RESIDENTIAL PROPERTY LOANS BUSINESS
Monetary Authority of Singapore THEMATIC INSPECTION OF RESIDENTIAL PROPERTY LOANS BUSINESS MAS Information Paper June 2013 TABLE OF CONTENTS 1 INTRODUCTION... 1 2 CREDIT UNDERWRITING STANDARDS... 2 Computation
More informationPrudential Standard CPS 232 Business Continuity Management
Prudential Standard CPS 232 Business Continuity Management Objective and key requirements of this Prudential Standard This Prudential Standard requires each regulated institution and Level 2 group to implement
More informationAMP Bank. Credit Reporting Policy AMP Bank Limited
AMP Bank Credit Reporting Policy AMP Bank Limited Effective Date: 12 March 2014 Contents 1. Purpose of this Policy 1 2. Definitions 1 3. Collecting Credit Information 2 4. Disclosing and using Credit-Related
More information28 October 2015. Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000. Dear Sir/Madam
28 October 2015 Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2015 AGM ADDRESSES TO SHAREHOLDERS The Company will address shareholders today at
More informationALL NATION FINANCE PTY LTD ATF THE ALL NATION UNIT TRUST TRADING AS ALL NATION FINANCE
CREDIT GUIDE & QUOTE ALL NATION FINANCE PTY LTD ATF THE ALL NATION UNIT TRUST TRADING AS ALL NATION FINANCE ABN: 68 686 536 129 Address: 10 Lancaster Road, Wangara WA 6065 Australian Credit Licence No:
More informationCredit Guide. ABOUT US ( we, us, our ): Credit Representative Credit Representative Number 395690 Mr James Andrew Staples
Credit Guide ABOUT US ( we, us, our ): Credit Representative Credit Representative Number 395690 Mr James Andrew Staples Address: 10 Claridge Close Mount Sheridan Queensland 4868 Tel: 0412 143 106 Email:
More informationWHICH IS FOR ME? HOME LOANS MADE EASY
WHICH IS FOR ME? HOME LOANS MADE EASY About this booklet At ING DIRECT, we try to make finding the right home loan as easy as possible. That s what this booklet is all about. All our home loans are described
More informationInformation Paper. Pandemic Planning October 2006. www.apra.gov.au Australian Prudential Regulation Authority
Information Paper Pandemic Planning October 2006 www.apra.gov.au Australian Prudential Regulation Authority Copyright The material in this publication is copyright. You may download, display, print or
More informationSupporting documentation and verification guide. For NAB Homeplus and NAB Peak Performance
Supporting documentation and verification guide For NAB Homeplus and NAB Peak Performance Contents Income verification 2 Full time and part time employment (PAYG)2 2 Casual employment2 2 Return to work
More informationFAMILY PLEDGE HOME LOAN. Product Specification. Effective as at 12 June 2015
FAMILY PLEDGE HOME LOAN Product Specification Effective as at 12 June 2015 This product specification is the property of Bank of Melbourne. It is for the use of Bank of Melbourne employees, contractors
More informationAPS 120 Funds Management & Securitisation
Prudential Standard APS 120 Funds Management & Securitisation Objective Principles Overview ADI s Involvement in Funds Management & Securitisation Activities Disclosure Separation Clean Sale Application
More informationProperty purchase Refinance existing mortgage Land purchase Construction Investing Renovating
imortgage application form imortgage.com.au Office use only Loan writer name Loan writer phone Opportunity ID Loan requirements and objectives My/our requirements and objectives for seeking credit or reviewing
More informationPepper Home Loan Product Guide
Pepper Home Loan Product Guide 2 November 2015 V4.1 Find out why a growing number of brokers are sold on specialist lending For information on specialist lending including videos, case studies and modules,
More information