ASIC Orders Banks to Relax Rules That Restricted Older People From Borrowing

IN A positive move for middle-aged and older Australians, the Australian Securities and Investment Commission has ordered banks to relax rules that restricted borrowing capacity.

On April 23 ASIC announced it clarified responsible lending guidelines introduced in January – which inadvertently resulted in banks and non-bank lenders being rejected credit applications from middle aged people without a substantial retirement egg.

ASIC now says lenders must ask more questions to determine whether a middle aged applicant will be able to repay a 25-year owner occupier mortgage loan, if they are due, for example, to retire in the next decade.

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Former Sydney Mortgage Broker Found Guilty of Fraud

From the ASIC website:  Former mortgage broker Mr Adrian Camilleri was found guilty today on one count of fraud following an investigation by ASIC. This followed an investigation into Mr Camilleri’s conduct between December 2005 and September 2006 while he was the sole director of Asset Finance Service Pty Ltd (under external administration). Asset Finance

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