Protect non-bank lenders

mortgage/chief-executive/government/

4 April 2008
| By Mike Taylor |

The Mortgage and Finance Association of Australia has used a submission to a Parliamentary inquiry to urge the Government to ensure that non-bank lenders are not forced out of the market during the current credit crunch.

The MFAA’s chief executive, Phil Naylor, said that the credit crunch, while impacting on all providers, was having a greater impact on non-bank lenders that did not have access to deposits and were forced to rely on the global markets and securitisation of their loan funding.

“If non-bank lenders are squeezed out of the market because of a lack of access to funds, we will likely see a ‘back to the future’ scenario with banks dominating housing lending and interest rate margins creeping back to pre-1990s levels,” he said.

Naylor said that in order to sustain competition in the Australian housing market, Australia needed a mechanism to provide access to securitised funds, similar to that which operated in Canada and the US via the Government-sponsored structures such as Freddie Mac and Canada’s CMHC.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS