Mortgages and Consumer Lending

ANZ responded to the publication by ASIC of its proposed regulation of exit fees (see story) by immediately announcing that it was to abandon exit fees. It also announced a downward revision of transfer fees and announced assistance for transferring customers. Simultaneously, it announced a mortgage interest rate rise - less than was announced a week ago by rival Commonwealth Bank. It may be yin and yang but it caused ire from Penny Wong, a Treasury Minister. But criticism is disingenuous, says Nigel Morris-Cotterill

The Australian Securities and Investments Commission (ASIC) today released guidance for mortgage lenders that sets out how provisions in the National Credit Code and unfair contract terms law apply to mortgage early termination fees (exit fees).

The Financial Services Authority (FSA) has fined small mortgage lender, Bridging Loans Ltd, GBP42,000 and its director Joseph Cummings £70,000 for serious failures relating to lending practices and for failing to treat customers fairly in arrears.

The Federal Housing Finance Agency is not happy. It regulates 12 US government sponsored Federal Home Loan Banks - plus Fannie Mae and Freddie Mac. Not only is it having to oversee the débâcle over disastrous home lending policies that brought banks to their knees but now it's having to note that its supervision did not extend to making certain that the policies and procedures at those banks took account of the appropriate laws when homes were repossessed. And Fannie Mae is saying "It's our money but the problems are all downstream of us." Kinda.

The Bank of America has announced that it is to suspend all repossession proceedings. It's not a final stop, though. Even so, California is trying to get all lenders to halt repossessions.

As Australia's new consumer credit registration scheme comes into force, increased surveillance is in place - and two Queensland credit brokers have had their registrations cancelled.

Cars are high-value assets that can be easily converted into cash. That's one of the reasons, say Experian, why car loans have overtaken mortgage fraud as the vehicle of choice for UK fraudsters. But mortgage fraud is rocketing, too.

South Canterbury Finance was, until last week, a major player in the property finance sector in New Zealand. But, behind the headlines are some disturbing facts.

Pawnbroker Borro.com has found some interesting facts about its customers. They are not who you think they are, they are not borrowing for the reasons you think and they do not adopt the payment patterns you expect. But there's still a nagging question .... why?

More evidence, if it is needed, that the talk of the recession and the financial crisis being behind us is misplaced. Yesterday, Jennifer M. Granholm, Govenor of the state of Michigan announced the Michigan State Housing Development Authority (MSHDA) will receive USD128.4 million in additional support from the Obama Administration to help homeowners struggling to make their mortgage payments due to unemployment.