DFA has developed a risk scoring system, which combines information from lenders, and households to provide an indicator of the relative likelihood of an applicant successfully obtaining a mortgage, within a specific post code, and the relative weighting in terms of loan-to-value (LVR) and other factors which will be taken into account. Additional factors will … Continue reading “Not All Post Codes Are Created Equal In Mortgage Applications”
S&P Ratings released their SPIN to December 2018, an assessment of the risks in Australian Residential Backed Mortgage Securitisation Pools. Overall we see a further rise in delinquencies, other than in Tasmania. Significantly the 90 day plus arrears are rising, as predicted by our mortgage stress analysis as the slow roasting of mortgage borrowers continues. … Continue reading “More Evidence Of Mortgage Delinquencies Rising”
Westpac released their Pillar 3 report for December 2018, plus data on asset quality funding and capital. Of most interest to me was their mortgage data, which shows loan volume growth slowing, and rising delinquencies. The number of properties in possession rose from 396 to 444 in a quarter! They said their audited statutory net … Continue reading “Mortgage Delinquencies Higher At Westpac”
NAB today lifted its back book mortgage rates by up to 16 basis points, which marks the end of its initiative to hold rates lower. As we have been saying for some time margin pressure is building, as illustrated by the BBSW … and LIBOR rates We expect more rises across the lending community, which … Continue reading “NAB Lifts Mortgage Rates”
According to Moody’s on 15 January, UK Financial Conduct Authority (FCA) chief Executive Andrew Bailey, reiterated the organisation’s intention to improve so-called mortgage prisoners’ access to refinancing by relaxing current mortgage affordability regulations that preclude them refinancing into cheaper mortgage deals because they fail to meet affordability standards that were tightened in 2016. Relaxing the … Continue reading “UK regulator suggests relaxed mortgage affordability test to encourage refinancing”
The second wave of out-of-cycle mortgage rate hikes has continued, with another lender announcing increases of up to 20 basis points, via The Adviser. NAB-owned lender UBank has announced that it has increased interest rates on its fixed rate investor home loan products by 20 basis points, effective for new loans issued as of 14 January. … Continue reading “UBank Lifts Mortgage Rates”
The Bank of Queensland has announced that they will lift mortgage rates for existing borrowers, thanks to higher funding costs, and pressures on bank deposits. The BBSW (interbank funding rate) has risen, and there are limits to how far deposit rates can be cut. We expect other banks to follow. BOQ announced today that funding … Continue reading “Mortgage Rate Rises On The Cards”
APRA has released some information relating to their 2017 stress tests in their “APRA Insight Issue Three 2018“. We discussed the results in a recent Adams/North video. We were not impressed! This is what APRA has now released. Compared with the bank by bank data the FED releases, its VERY high level! Stress testing plays … Continue reading “APRA Releases 2017 Stress Test Summary”
We discuss the latest mortgage stress, lending and company results (AMP and CBA) as well as future plans for our channel.
The number of Australians falling behind on their mortgages will rise in the next two years as interest-only loans end and repayments get more expensive, ratings agency Moody’s has warned, via MSN. Delinquencies on loans that have converted from interest-only to principal and interest are running at double the rate of those still on … Continue reading “Thousands of Aussies with interest-only mortgages set to struggle: Moody’s”
