Moody's international comparison of mortgage markets

November 20, 2017

Possible house price drop poses some risk for Canadian, Swedish, Australian banks House prices and household debt have risen to unprecedented levels in Canada, Sweden and Australia. This increases the risk that adverse economic developments could trigger a house price drop, leading to higher loan losses for banks. We have recently taken rating actions on…

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Basel IV does not go far enough

October 20, 2017

Written by Graham Andersen on 20/10/17, published in AB+F. The banking world awaits the finalisation of the now termed Basil IV. The most controversial point outstanding and yet to be agreed is a floor on the discount to the standard method of calculating bank capital requirements or risk weighted assets. The floor is to be…

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Mortgage regulation could spark ‘severe downturn’

October 20, 2017

This article appeared on Mortgage Business on 20/10/17, by James Mitchell. A decision by Canada’s banking regulator to impose further restrictions on borrowers has triggered fresh fears over how markets might react to lending curbs. This week, the Canadian equivalent of APRA — the Office of the Superintendent of Financial Institutions (OSFI) — announced fresh changes to its mortgage…

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Rethinking Financial Literacy

October 16, 2017

This blog originally appeared in Mortgage business in 2014, by Kym Dalton. With current attention around ensuring enhanced consumer outcomes, it’s even more relevant now. Here are a couple of quotes from a recent housing think tank that I attended in the US: “It all begins with financial literacy” and “Financial literacy is the key…

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ASIC update on interest-only home loans

October 16, 2017

This article originally appeared on the ASIC website, on Wednesday 11 October 2017. ASIC today provided an update on its targeted review of interest only home loans. Announced in April 2017, the review was a targeted industry surveillance examining whether lenders and mortgage brokers are inappropriately recommending more expensive interest-only loans. With many lenders, including major…

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UBS Evidence Lab survey of 907 Australians

October 8, 2017

Between 7th of July and 4th of August 2017, UBS Evidence Lab conducted an online survey of 907 Australians who had recently taken out a mortgage to buy a residential property. This follows on from our August/September 2016 survey which covered both the 2015 and 2016 Vintages. Respondents were required to be personally and deeply…

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A Look at Over-Indebted Households

September 26, 2017

Originally published by Cameron Kusher, Core Logic, on 25/9/17. The Household Income and Wealth Survey has determined those households that are over-indebted and those that are not.  The results are not necessarily what you’d expect with higher income households more likely to be over-indebted than lower income ones. Last week the Australian Bureau of Statistics (ABS)…

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UBS Survey of recent mortgage holders

September 13, 2017

Work Undertaken Between 7th of July and 4th of August 2017 UBS Evidence Lab conducted an online survey of 907 Australians who had recently taken out a mortgage to buy a residential property. This follows on from our August/September 2016 survey which covered both the 2015 and 2016 Vintages. Respondents were required to be personally…

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Open banking: lessons for Australia’s credit industry

September 7, 2017

This article originally appeared in AB+F on 7/9/17 Read the original article > According to Poli Konstantinidis, managing director, credit services & decision analytics A&NZ at Experian, there is a growing sense of urgency in Australia of the need to embrace open data sharing or be forced to work within an imposed regime. But what lessons…

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Dalton says ‘flat fee’ model could hurt consumers

August 23, 2017

This article originally appeared in ‘The Adviser’ on 25/7/17, written by James Mitchell. Original article > Mortgage industry figure Kym Dalton has outlined a number of issues with the proposed flat-fee broker remuneration model, arguing that it “could be opaque” and vary from lender to lender. In recent weeks a number of Australian consumer groups, such…

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