ASIC has been
examining the processes involved in interest-only home lending over the past
few years. It has produced two reports to assist both lenders and credit
intermediaries to review their processes and procedures to remain compliant.
The MFAA has produced a short overview of these two reports
to assist members to locate key outcomes and to review systems to align their
activities with regulatory expectations.
In order to assist their awareness and ensure that procedures conform, Members are urged to read ASIC's Report 493: Review of interest-only home loans: Mortgage brokers' inquiries into consumers' requirements and objectives if they are likely to recommend interest-only loans to clients.
Additional information on the Regulator's view of how lenders should act can be found in ASIC's Report 445: Review of Interest Only Home Loans.