Archive for March 2018

Survey: Interest-only reset crashes specufestor spirits

This article originally appeared on MacroBusiness on 27/3/18. Via Martin North of Digital Finance Analytics: The latest release of the Digital Finance Analytics Household Survey to end March 2018, helps to explain why we think home prices are set to fall further. We discussed four housing and property scenarios in a recent video blog. But…

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How Can a Fintech Company Win 20 Million Customers?

This article originally appeared on Strategy Business on 14/3/18, written by Suvarchala Narayanan. Valentin Stalf, chief executive of German financial-services startup N26, wants banking to be like music downloading. How long will it be before the new financial technology (fintech) companies transform the financial-services industry? To startup fintech leaders such as N26 CEO Valentin Stalf, that…

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Are interbank blowouts signalling crisis?

By Damien Boey of Credit Suisse. Unusual money market tightening What, me worry? Interbank credit spreads measure the compensation that money market participants require for taking on counterparty credit and liquidity risks. These spreads have widened sharply in recent months. The three-month bank bill spread to overnight indexed swaps (OIS) has increased to 40bps from…

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Mortgage lending market faces a week long probe

This article originally appeared on Broker News on 12/3/18 by Manuelita Contreras. All eyes are on the mortgage lending market this week as the royal banking commission kicks off its first round of public hearings tomorrow, focusing on consumer lending. But there is more to come this week: the Australian Competition and Consumer Commission is releasing…

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Mortgage customers are happier with smaller banks

This article originally appeared on Your Mortgage by Michael Mata on 9/3/18. Customer satisfaction with banks in the six months to January was 81.2%, up from 80.8% in December, according to a new report from Roy Morgan Research. “This represents a very positive result for the banking industry as it follows the increase seen in…

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Lender to ‘democratise’ mortgage process with AI

This article originally appeared on Mortgage Business on 6/3/18. A new Australian mortgage provider will soon begin offering prime home loans through the third-party channel using a range of innovative technologies such as artificial intelligence. Mortgage Business revealed last week that new non-deposit-taking lender Australian Mortgage Marketplace (AMM) will harness blockchain technology and allow mortgage brokers…

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More mortgage rate cuts expected as major lenders rebuild their market share

This article originally appeared on Australian Financial Review on 6/3/18. Major lenders are expected to follow the Commonwealth Bank of Australia’s latest round of interest-only mortgage cuts after losing market share because of massively over-estimating the impact of lending caps on their loan books, despite regulatory fears about rising debt and prices, according to analysts.…

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Problem IO Loans Close To Home – The $100 Billion Problem

This article originally appeared on Digital Finance Analytics, written by Martin North on 4/3/18. Today we discuss which post codes will be most impacted by the interest only mortgage loan reset issue, and update our estimates of the number and value of loans likely to be impacted. This received media coverage in the AFR and the Australian over the…

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New mortgage lender set to disrupt local market

This article originally appeared on Mortgage Business on 1/3/18. A handful of mortgage industry veterans have launched a new innovative home loan provider that will harness blockchain technology and allow mortgage brokers to brand their own mortgages. Non-deposit taking lender Australian Mortgage Marketplace (AMM) is on track to begin funding mortgages later this year, including…

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