23rd April 2009
Lenders and Brokers working together
With the Federal Government about to release legislation for the new national credit regulation, the need to prepare for the implications begins now.
Of course, this is not the first time that the financial services sector has been the centre of increased compliance requirements. Think HIH and OneTel where the finance sector was subjected to a strict regime by APRA. Given the seriousness of the current financial crisis, the regulations are working quite well.
With September being the likely month for Parliament to enable legislation, lenders and brokers need to be fully aware and prepared for the consumer credit laws which will be overseen by ASIC.
The laws will apply to every form of financial services in Australia, which includes credit providers, such as
La Trobe, and to all credit and mortgage brokers.
Senator Nick Sherry, Minister for Superannuation and Corporate Law, says that under the new system, lenders and brokers will be required to assess the capacity of borrowers to repay their debts before agreeing to provide credit. He says, "If a borrower goes to an individual broker, it will be in the first instance their responsibility. They will carry out the assessment."
To remain within the industry, planning now for the much needed and anticipated regulation begins for all. Suitable training courses are offered by the MFAA and FBAA as well as ASIC's RG146.
La Trobe's borrowing guide, "When Borrowing doesn’t add up. How to Avoid Bad Loans", covers many of the areas to be aware of when a borrower is seeking finance. Such as:
What is a bad loan?
What tactics do bad lenders use?
Protecting yourself – don't be pressured to borrow more
than you can repay
What is predatory lending?
It is available for viewing at our website, www.latrobefinancial.com.au For more information contact us on 1800 707 707.
The laws aim to ensure that all licence holders meet appropriate entry and education standards before they can offer their services to the community and continue to keep abreast of industry requirements.
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Head of Lending
Iain Pepper is a Vice-President and the Head of Lending for the La Trobe Group.Read full profile here.
La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 145 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.
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