Simplifying access to credit – a win for lenders!

As Australia continues to recover from the COVID-19 pandemic, the Morrison Government announced proposed changes to access credit. The proposed changes, outlined in the article below, seek to simplify the system between consumers and lenders, making access to credit easier for consumers and small businesses. Read the full article below.   Our Banking & Finance team […]

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Conflicted remuneration – mortgage brokers’ tricky year ahead

The Federal Treasury has released the long-awaited regulations which will govern mortgage broker remuneration from 1 January 2021, the Financial Sector Reform (Hayne Royal Commission Response—Protecting Consumers) (Mortgage Brokers) Regulations 2020 (Regulations). It follows the release of the draft regulations and explanatory statement in August 2019. The Financial Sector Reform (Hayne Royal Commission Response – […]

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COVID-19 | ASIC publishes expectations of retail lenders when loan repayment deferrals end

On 13 August 2020, the Australian Securities and Investments Commission (ASIC) issued letters to lenders, notifying them of ASIC’s expectations once the mortgage deferral period expires next month. Lenders had offered the six month mortgage repayment deferral period to their customers, in response to the COVID-19 pandemic, which debt is estimated to be worth billions […]

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COVID-19 | The Banking Code of Practice – COVID-19: Special Note

In these uncertain times, the financial services industry is experiencing unprecedented levels of customer queries and financial hardship requests. As a result of the high volume of customers in distressed circumstances, on 25 June 2020 ASIC approved temporary changes to the Banking Code of Practice (the Code) so that Banks can continue to provide suitable […]

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COVID-19 | Banking & Finance Update – Part 2

The COVID-19 Omnibus (Emergency Measures) Act 2020 (Vic) (COVID-19 Act), which commenced on 25 April 2020, has introduced temporary amendments to the Residential Tenancies Act 1997 (Vic) (RT Act). These amendments came into effect on 29 March 2020 and will continue 6 months after the commencement of the COVID-19 Act. Part of the amendments have […]

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COVID-19 | Verification of identity – the need to go digital

All of the states (but not the territories) require mortgagees to undertake reasonable steps to verify the identities of mortgagors, commonly through a framework called the “Verification of Identity Standard” (VOI Standard) undertaken by specialised “Identity Agents” e.g. lawyers or other agents with professional indemnity insurance. Where they do not, and the mortgage instrument is […]

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Responsible lending – updated guidance and practical considerations

Lenders’ responsible lending obligations have been a fluid topic in the wake of the Hayne Royal Commission’s final report in February 2019. In that report, Commissioner Hayne said that he was ultimately not persuaded that the National Consumer Credit Protection Act 2009 (Cth) (NCCP) needed to change in that aspect. His view was that the […]

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Mortgagees and verifying mortgagors’ identities – a time of change

On 18 December 2019, the Australian Registrars National Electronic Conveyancing Council (ARNECC) released a consultation draft of version 6 of its Model Participation Rules. It pertains to Mortgagees’ “Verification of Identity” (VOI Draft) requirements when registering mortgage securities, which are separate to AML / CTF KYC requirements. The VOI Draft – which contains one very […]

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Mortgage Brokers – You could be up for $1.05M in fines from 1 July 2020

On 6 February 2020, the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2019 Measures) Bill 2019 (Bill) passed in Parliament. The Bill gives effect to recommendations 4.7 and 4.2 of the Hayne Royal Commission by amending the National Consumer Credit Protection Act 2009 (Cth) (NCCP) and the National Consumer Credit Protection (Transitional […]

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Considerations for an early release of superannuation request

Quite often a lender will receive a request from their customer to support an early release of superannuation to assist with mortgage repayments and pay outstanding arrears in situations where the lender has commenced enforcement action for possession of the mortgaged property. Click here for full size image.               […]

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Gadens: PEXA leader among Australian law firms

The Gadens Brisbane Banking and Finance Group is a well-established team with significant experience in PEXA and the electronic conveyancing network. Gadens, with its already proven banking track record, has added a further string to their bow by becoming one of the leading transacting law practices on PEXA in Queensland with over 18,630 completed PEXA transactions, including over […]

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PEXA Alert: NSW CoRD Consents and Paper Transactions

This is a PEXA alert for practitioners and financial institutions that are taking security over real estate in NSW. Due to the mass conversion of titles in NSW from paper certificate of titles (pCT) to electronic certificate of titles (eCT), an issue has arisen regarding the appropriate authority to deal with the title. When a […]

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