The MFAA welcomes the findings of the ASIC review into interest-only loans, primarily that new interest-only loans have slowed to $35.6 billion in the recent quarter.
“The report supports the positive impact that brokers have on providing credible credit advice to consumers, by ensuring that interest-only loans are only offered after the strictest of compliance standards are met. These standards require that a broker conducts a full needs analysis and fully explains the nature of the product prior to it being offered as an option,” stated MFAA Chairman Cynthia Grisbrook.
“The ASIC report is a timely reminder to all our members to ensure that they are up to date on the compliance requirements as they relate to interest-only loans, to ensure they are providing the correct credit advice.”
The MFAA will also be communicating an up to date set of guidelines to refresh members on these compliance requirements.