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.

    Best regards
    Iain Pepper


    > Home
    > About Us
    > Login - Product Guide
    > Loan Applications
    > Loan Products
    > Partner Portal
    > Privacy Charter

    Iain Pepper
    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.

    Copyright 2010 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

    IMPORTANT: This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website. La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you. (1) The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may achieve lower than expected returns. Investors risk losing some or all of their principal investment. (2) The rating report is available on the La Trobe website or upon request. The rating is only one factor to be taken into account in deciding to invest. (3) Withdrawal rights are subject to liquidity and may be delayed or suspended. (4) Rates (where shown) are indicative and for information purposes only and must be confirmed by your La Trobe loan manager upon formal application. Rates are subject to change. Please refer to http://www.latrobefinancial.com.au for full comparison rate schedule