Podcasts about responsible lending

On Tuesday's show: Houston ISD, like many school districts across Texas, has been addressing teacher shortages in recent years by hiring uncertified teachers. A bill in the Texas House would end the practice. We learn what the bill says and what it would mean for schools here in Houston and across the state.Also this hour: More than half of all payday lending fees issued in the country are paid by Texans, according to the nonprofit advocacy group the Center for Responsible Lending, We find out why that happens and what Texans can do to escape the cycle of debt.Then, Todd Waite, longtime resident actor at The Alley Theatre, joins us. He's in his final role with the theater after 25 years, performing in Ken Ludwig's Baskerville: A Sherlock Holmes Mystery, a wacky twist on the classic tale.And we discuss the challenges of meeting new people in a large, busy metro area like ours.

  Car title lending. Thankfully, a lot of North Carolinians have never heard of this particular business because it's long been prohibited under state law. Unfortunately, many residents of other states are all too familiar with these frequently predatory loans in which borrowers sometimes pay interest rates of as high as 300% and face repossession […]

There's growing concerns from expert as the Government rolls back some restrictions needed to take out a loan. From today, The Government has removed affordability regulations from the Credit Contracts and Consumer Finance Act and updated the Responsible Lending Code. Money Sweetspot co-founder and CEO Sasha Lockley says relaxing these requirements means more people are at risk of getting into debt that they can't afford to pay back. "People believe what banks and finance companies tell them around affordability...and if you go to some of the bad actors in this financial system, they may say - yes, absolutely you can afford it, when actually, people can't." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Episode 67 - The Truth About Car Title Loans - How They Work and Why You Should Avoid Them with Lucia Constantine, a researcher at the Center for Responsible Lending who focuses on predatory debt practices… Disclaimer: Please note that all information and content on the UK Health Radio Network, all its radio broadcasts and podcasts are provided by the authors, producers, presenters and companies themselves and is only intended as additional information to your general knowledge. As a service to our listeners/readers our programs/content are for general information and entertainment only.  The UK Health Radio Network does not recommend, endorse, or object to the views, products or topics expressed or discussed by show hosts or their guests, authors and interviewees.  We suggest you always consult with your own professional – personal, medical, financial or legal advisor. So please do not delay or disregard any professional – personal, medical, financial or legal advice received due to something you have heard or read on the UK Health Radio Network.

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMWhat does it take to become a great strategic mortgage broker?"You need to listen with intent", says Dave. There is so much more to effective mortgage broking than just having a good grasp of numbers and a sharp recall of loan products.The most successful professional advisors ask seven times more questions than the average advisor.Cate weighs in with a comment about how a good advisor can deliver an answer. She also talks about the privilege of being a trusted advisor. And Cate doesn't worry about scripts and dialogue. It's all about listening and asking the right questions.The ability to notice body language and the EQ required in a role like this is intriguing. Tune in to hear more!Why is mortgage strategy so much more important than rate? Dave runs our listeners through all of the important considerations in the mortgage strategy.What are some of the technical skills required to be a SMB (strategic mortgage broker)?Mike challenges Dave about the Royal Commission and the change in legislation for Responsible Lending. Dave sets the record straight! And he shares some good stats too. Cate and Dave discuss the broker commissions and the practical reasons why SMB's maintain good, ongoing relationships with their clients.Dave and Mike discuss the processes required to mitigate the consumer's risk when it comes to deposits and settlements. Deadlines and clauses govern a lot of tasks, and attention to detail is critical. Dave shares some of the worst case scenarios.Lastly, our gold nuggets…… Mike Mortlock's gold nugget: Mike recalls witnessing mortgage brokers and accountants arguing about add-backs and servicing calculations. This early awakening showed Mike the value of a good quality mortgage broker.Dave Johnston's gold nugget: Dave reminds listeners that he has hardly mentioned interest rates in this episode. Strategic mortgage broking goes so much beyond rate.Cate Bakos's gold nugget: "If you win them on rate, you'll lose them on rate". Cate relays an important message about the importance of looking beyond offering the cheapest rate.Show notes: https://www.propertytrio.com.au/2023/12/04/unveiling-the-secrets-of-elite-strategic-mortgage-brokers/

In this episode of Saving With Steve, host Steve Sexton is joined by Lucia Constantine, a researcher at the Center for Responsible Lending who focuses on mortgage lending and predatory debt practices. They discuss the truth about car title loans and why you should avoid them, breaking down how this industry extracts fees and keeps people tied to their payday loans.     Learn more about the show at www.SavingWithSteve.us

Bruce Norris is an active investor, hard money lender, and real estate educator with over 35 years experience. Bruce has been involved in more than 2,000 real estate transactions as a buyer, seller, builder, and money partner. Renowned for his ability to forecast long-term real estate market trends and timing, the release of The California Comeback report in 1997 gained him much notoriety. The accuracy of the extensive report led many California investors to financial freedom. His January 2006 release, The California Crash, was an in-depth look into the California market correction and the statistics behind Bruce's predictions. Bruce speaks and debates nationally and has been a guest speaker at the Mortgage Bankers Association, REOMAC, Inman, HousingWire, California Association of Realtors, California Builders Industry Association, California Mortgage Association, the Real Estate Research Council, and several local and national investment clubs, associations, and service clubs. Bruce has met with local and national government officials including FHA and Fannie Mae to discuss market solutions and market insights. Bruce is also the host of the award-winning series, I Survived Real Estate. The events bring together leaders from numerous real estate sectors to discuss legislation, regulation, stimulus-related issues, and solutions to the current market. The events have also helped raise over $1,000,000 for charity since it began in 2008. Bruce hosts the award-winning Norris Group Real Estate Radio Show and Podcast, where he interviews real estate industry leaders, authors, government officials, local experts, and economists. Guests have included representatives from the FBI, the MBA, Freddie Mac, the Appraisal Institute, HUD, Fannie Mae, PropertyRadar, Auction.com, PIMCO, PMI Group, REDC, the National Auctioneers Association, and the Center for Responsible Lending, as well as Peter Schiff of Euro Pacific Capital and John Mauldin to name a few. There are almost 600 shows and 250 hours of free education in our real estate radio archives. Bruce has contributed articles to many real estate magazines and newsletters including The Business Press, Scotsman Guide, Creative Real Estate Magazine, The Orange County Register, RealtyTrac's Foreclosure Newsletter, AOA Magazine, and the Daily Commerce. He has also been featured in: The Wall Street Journal, Fox Business News, Nightline ABC, The New York Times, Time Magazine, Good Morning America, the Los Angeles Times, Fortune, Mortgage Banker Magazine, Money Magazine, Reuters, Associated Press, The Orange County Register, The Tribune, and numerous others. He was awarded Educator of the Year by Think Realty in 2018. What you'll learn about in this episode: How Bruce came up with his model to accurately forecast long-term real estate trends Why you always need to account for “mood” when forecasting market trends How the human element comes into play when understanding market shifts How urgent groups of inventory determine the market, and what that means for the current market What Bruce predicts for the real estate market over the next few years What interest rates and average homeownership length tells us about where things are headed Resources: Sign up for a Free Mentor Panning Session: https://www.ronlegrand.com/mentoring-application/?cid=TMP Free Training: www.Thementorpodcast.com/terms Get Ron's $599 Wholesaling course for FREE when you join his Gold Club for ONLY $59 a month! –https://thementorpodcast.com/GC142

Wenbin Wong, head of GrabFin Singapore, and Lewis McLellan, editor of the Digital Monetary Institute, discuss ‘buy now, pay later' — a rapidly growing form of consumer lending. The ease of use and accessibility that BNPL offers could make it a valuable tool for economic empowerment, but as consumer exposure grows, it is vital that regulators keep a close eye on unintended outcomes in the marketplace. This podcast explores the benefits that BNPL can bring for individuals, particularly in south east Asia, who are underserved by traditional banking services, as well as the recent Singapore BNPL code of conduct, which could provide a framework for other jurisdictions looking to keep their burgeoning BNPL markets safe.

Learn more about changes to the U.S. Department of Education income-driven repayment (IDR) programs. The post Attorney Rochelle Sparko of the Center for Responsible Lending discusses the Biden administration's new action to help the nation's millions of student loan borrowers appeared first on NC Policy Watch.

Financial institutions, particularly community banks, are experiencing a paradigm shift in the architecture of banking. While the idea of stitching together the banking experience has always been present, we're finally seeing a truly connected ecosystem due in part to the technological acceleration that's taken place in the past 3 to 5 years. In this episode, Nitin Mhatre, CEO of Berkshire Bank, discusses the importance of combining automation with personalization and how community banks can go beyond the baseline expectations to facilitate more environmentally and socially-responsible lending. We discuss: - Combining digital and human touchpoints - The importance of a connected front, middle and back-office - Improving financial literacy - How to measure environmental and social responsibility To hear more from Leaders in Lending, check us out on Apple Podcasts, Spotify, or on our website. Listening on a desktop & can't see the links? Just search for Leaders in Lending on your favorite podcast player.

Originally broadcast October 24, 2021 The post Consumer advocate Rochelle Sparko of the Center for Responsible Lending on the state of the national student loan debt crisis appeared first on NC Policy Watch.

Graciela Aponte-Diaz, Director of Federal Campaigns for the Center for Responsible Lending, joins Amy & JJ to discuss the move by one of the country's largest banks to get rid of overdraft fees - a move that will cost the company millions.  See omnystudio.com/listener for privacy information.

In this week's episode of Cheques & Balances, James Blair and Michael Vincent discuss What are the responsible lending Code Changes, What is the purpose of the changes, and when they will come into effect.The content in this podcast are the opinions of the hosts. It should not be treated as financial advice. It is important you take into consideration your own personal situation and goals before making any financial decisions. Hosted on Acast. See acast.com/privacy for more information.

The post Consumer advocate Rochelle Sparko of the Center for Responsible Lending on the state of the national student loan debt crisis and some relief that the Biden administration has made available appeared first on NC Policy Watch.

The post Consumer advocate Rochelle Sparko of the Center for Responsible Lending on the state of the national student loan debt crisis and some relief that the Biden administration has made available appeared first on NC Policy Watch.

Today's guest hosts are Edwith Theogene and Charlotte Hancock, Organizing Director and Communications Director for Generation Progress. They discuss how over 43 million Americans currently have student loan debt, and young people are disproportionately likely to be included in that group. Younger generations are deeply invested in ending this crisis, as student debt is holding them back from the financial security they need to buy homes, start and provide for families, and save for retirement. But in order to end the student debt crisis for good, America needs to do more than cancel existing debt—we also need to prevent future student loan debt by addressing the college affordability crisis. One way to do that is by passing legislation for free or debt-free college. We've seen several bills introduced in Congress already and a free community college provision was included in President Biden's America College Promise plan, but we have yet to see any of these proposals become law. To talk more about the fight for debt-free college, and why college affordability and student debt solutions are two sides of the same coin, Edwith and Charlotte are joined by two expert guests. They are Jaylon Herbin, an outreach associate with the Center for Responsible Lending (CRL), and Marshall Anthony, the associate director of policy and advocacy for Higher Education at the Center for American Progress. Then, during the final segment of the show, Edwith and Charlotte are joined by Generation Progress's program associate Ella Azoulay.  Ella discusses the Debt-Free College For All Week of Action, which Generation Progress is spearheading next week. Generation Progress' website is GenProgress.org and their Twitter handle is @GenProgress. Edwith Theogene's Twitter handle is @WhoIsEdwith and Charlotte Hancock's handle is @CharlatAnne. Marshall Anthony's Twitter handle is @mcanthonyjr and the handle for the Center for American Progress Higher Education team is @CAPHigherEd. The Twitter handle for Jaylon Herbin is @HerbinJaylon and the handle for the Center for Responsible Lending is @CRLONLIN.

Federal Treasurer, Josh Frydenberg has asked the Council of Financial Regulators to investigate the fact that credit growth is materially outpacing growth in household income and to advise on any policy responses.In lay terms, the Treasurer is worried that people are borrowing too much money compared to their incomes and that could be risky for the economy.Increase in home lending is pronouncedIt has been well documented that house prices in Australia have been rising at a fast pace over the past year. But this isn't unique to Australia. This is also a global phenomenon, as illustrated in Knight Frank's Global House Price Index report released last week. This report ranks the house price growth in 56 countries and Australia ranks 18th.It is higher loan volumes that have caused higher property prices. The ABS chart below shows that most of the increase in lending has been driven by owner-occupiers (being the dark blue line), not investors.CHART ON WEBSITEThe monthly volume of home loans has been rising significantly since mid-2020. The average volume of lending between December 2020 and August 2021 was $21.7 billion per month. The average for the 10-year period prior to June-2020, was only $11.6 billion per month.Approximately 60% of the increase in lending over the past 9 months has been driven by an increase in the number of borrowers. And 40% has been driven by an increase in the average loan size i.e. people borrowing more. This makes sense as higher income earners have largely been (economically) unaffected by the Covid lockdowns.Level of household debt is a worryThe chart below illustrates how the level of household debt (blue line) has increased over the past three decades. The green line depicts the interest cost of this debt. The interest cost has remained relatively contained for the past decade, thanks to falling interest rates.CHART ON WEBSITEHousehold budgets will clearly be more sensitive to future interest rate increases because they have more debt. This means that any future increases in the RBA Cash Rate will be more effective in containing inflation (by cooling consumer spending). As such, it is entirely possible, even likely that interest rates may never return to pre-GFC levels. That is, it's possible that interest rates will permanently remain below 6% p.a.The upshot of this is the government is rightly concerned about households' higher indebtedness. This may be acceptable whilst interest rates are unusually low, but it could cause problems for some borrowers when interest rates inevitably rise.Likely intervention: income to debt capThe banking regulator considers a high debt-to-income ratio as anything above 6 i.e. borrowings greater than 6 times your family's gross annual income. Therefore, if your family's income is $200k p.a. and you have borrowings more than $1.2 million, the regulator considers you to be a riskier borrower.The chart below (froman APRA report) highlights that high debt-to-income lending (dark blue) has increased since last year. In fact, it grew by 2.8% in the June 2021 quarter which is the highest increase on record.CHART ON WEBSITEIt is this cohort of borrowers that I expect the regulator to target. It can do so by instructing the banks to reduce lending to borrowers that have high debt-to-income ratios i.e. greater than 6 times, which I think is prudent.Asset-rich, income poor are locked out of the borrowing marketAsset-rich, income-poor borrowers will further be disadvantaged. As I wrote several months ago, banks only lend against income, not assets. That means if you have $20 million of cash in the bank and no job, most mainstream banks will not lend you a cent! Inflexible lending rules do not allow a bank to consider your asset base as a source to fund loan repayments (only income). Of course, this is nonsensical.Consider an example where a borrower owns their home worth $1 million, an investment property worth $1.2 million, a share portfolio worth over $2 million, $500k in cash savings and has zero debt. For lifestyle reasons, the borrower only works casually and earns $20k p.a., but has the capacity to work full-time, if required. In this situation, this borrower has almost no borrowing capacity. Practically, this investor could borrow safely.The point I'm attempting to make is that implementing restrictions such as a debt-to-income caps is often necessary and prudent. However, lenders must have the flexibility to work outside of these parameters where appropriate. Unfortunately, they almost never have this flexibility or are unwilling to exercise it.High income borrowers are in the box seatMost people with a family income of $1 million, for example, probably wouldn't want or need to borrow materially more than $6 million, so the implementation of a debt-to-income cap will not have any impact on their plans.However, borrowing capacities for lower income earners will be adversely impacted. A restriction on borrowing capacity will retard their ability to afford a house in their desired location and/or their ability to invest in property.Whilst this isn't an unacceptable outcome in isolation (as borrowing say 10 times income, for example is rarely a good idea), it will unfortunately exacerbate wealth inequality.What does this mean for the property market?It is my view that any change to debt-to-income ratios will probably not have any measurable impact on blue-chip, investment-grade locations. There are enough borrowers with strong financial positions to underpin demand for investment-grade property.However, expected tightening in lending rules will likely impact locations that are populated with a higher proportion of lower income earners.

Borrowing to invest in property is a popular and highly effective wealth accumulation strategy if it's implemented correctly. However, loan structuring can often be an afterthought. The reality is that loan structuring and maximising your borrowing capacity is almost just as important as buying the right property. This blog sets out how to structure your loans to build a property portfolio.A step-by-step exampleThe video below takes you through an example of how to structure your loans.See video here. Step one: access equity (deposit loan)You will need to pay a deposit (usually 10%) when you purchase a property. Therefore, you need to arrange access to these borrowed funds. Even if you have access to cash savings, I still recommend that you establish a new loan. This blog explains why this is important.I recommend arranging a loan sufficient to fund 20% of the property's value plus all costs in addition to a buffer. This loan will be secured by an existing property e.g. your home.Step two: arrange an 80% loanYou will be able to fund 20% plus all costs from the deposit loan. Therefore, you need to arrange a second investment loan to fund the remaining 80%. This loan will be secured by the investment property only. This loan should be pre-approved before you purchase.Step three: consolidate loansWhen your investment property's value has risen by 35% to 40% above the purchase price, which could take 5 to 7 years, you should be able to consolidate the deposit loan with the 80% loan so that all the debt is in one loan solely secured by the investment property. In this case, your home is no longer required as security.This structure avoids cross-securitisation which is important as explained in this blog.Additional investment propertiesIf you plan to invest in multiple properties, you can repeat the steps above. For simplicity, it is acceptable to maintain one deposit loan to fund deposits for multiple properties. If you do so, you must maintain good record keeping. Personally, I maintain a spreadsheet that includes a list of all purchasing costs, as that helps me verify loan amounts and calculates the investment property's cost base for CGT purposes.Current considerationsThe table below sets out how we generally structure interest rates and repayments in the current environment. Of course, if you are reading this blog after 2021, these recommendations may no longer be appropriate.See table here. Successful investors don't care about interest ratesBorrowing costs (interest rates and fees) are important, of course. However, maximising your borrowing capacity in a safe and prudent manner is far more important… about 8.5 times more important to be specific!There are two important benefits resulting from having a higher borrowing capacity. Firstly, you will be able to afford to invest in a higher-quality asset. Higher quality assets generally exhibit higher long-term capital growth rates and lower investment risks. Secondly, it may help you invest in more assets i.e. buy another investment property.I would rather pay a higher interest rate if it allowed me to invest in a better-quality asset. For example, paying 0.50% p.a. in additional interest on $1 million loan will cost you less than $53,000 after tax over the next 20 years in today's dollars. But a 1% higher capital growth rate will make your approximately $450,000 more in equity after tax (CGT). That equates to an 8.5 times return on your investment! That is why maximining your borrowing capacity is far more important than minimising your interest rate. Of course, it is a great outcome if you can optimise both, but never, ever compromise on borrowing capacity.You should expect to refinance every 2 to 5 yearsRefinancing loans is an administrative pain. Anyone that has set up a new loan over the past few years can attest to that. The amount of information you need to provide to the banks (often multiple times) and the number of forms that need to be completed is staggering. But the reality is that lenders (banks) change lending appetite and credit policies almost as often as the wind changes. Therefore, whilst your existing lender/s might be suitable for you today, there is no guarantee they will be in 3 years from now, for example. In fact, there's a good chance they won't be. Successful investors know that finance is a game and you've got to be willing to play that game. That includes switching to a new lender when necessary. Avoiding a refinance is easier. But sometimes the easiest path is not the most effective.An experienced mortgage broker is vitalAn experience mortgage broker will be able to help you structure your loans to ensure you maximise any tax benefits as well as your borrowing capacity. The benefits that an experienced mortgage broker can/should provide you, in addition to loan structuring, include:§ Knowledge and experience. The lending industry is a very dynamic marketplace. Things are changing all the time; credit policy, interest rates, laws, regulations, credit appetite and the list goes on. You need an experienced broker to help you navigate these risks and opportunities. Someone that goes into bat for you. That represents your best interest.§ Whilst loan applications are neither enjoyable or instantaneous, a professional mortgage broker will save you a lot of time through completing forms, answering inevitable (and often banal) questions from the lender, following up matters to avoid delays, liaising with other providers such as your accountant and lawyers and so on.§ Proactively re-pricing loans. This chart from the RBA clearly shows that existing borrowers are paying higher interest rates than new borrowers. That's because higher discounts are typically offered by the banks to attract new business. Therefore, it is important to periodically re-price loans to ensure you are receiving the highest interest rate discount possible. My firm is currently implementing a technology tool that uses an algorithm to trawl over our client's loans and automatically apply for higher discounts when they become available. It automates the whole process, so our clients don't need to do anything.Building wealth is a game of finance, not propertyInvestor and educator, Michael Yardney says “property investment is a game of finance with some houses thrown in the middle”, and I couldn't agree more. To master any game, you must learn the rules. And if you would like to do that, I suggest you grab a copy of my book, Rules of the Lending Game. For a limited time, you can buy a copy of this book for only $20 (free postage) if you use the code BLOG. Books are mailed by Australia Post so please allow 1 – 2 weeks for delivery.

GTOAT- The Greatest Trade of All TimeOn today's episode we have one of the best if not the best hedge fund manager of all time, John A. Paulson. And today we reveal how he pulled off his Big Short during the 2008 financial crisis. Paulson leads Paulson & Co., a New York-based investment management firm he founded in 1994 and turned his hedge fund into a family office in 2020. He has been called "one of the most prominent names in high finance" and "a man who made one of the biggest fortunes in Wall Street history."Paulson executed the greatest trade of all time, making $20 Billion off one trade. He was the 100th richest person in the world in 2016 with a net worth of $9.7 Billion. In 2010, he set another hedge fund record by making $5 billion in one year. He was one of the first people to predict The Great Recession in 2004. Mr. Paulson has only done 5 public interviews in his career. This is the ONLY PUBLIC interview about his Big Short. Paulson is also known for his philanthropy. He donated $400 million to Harvard University back in 2015 (largest donation in school history), and around $2.5 Billion to other charitable causes. Such as  Between 2009 and 2011 Paulson made several charitable donations, including $15 million to the Center for Responsible Lending, $20 million to New York University Stern School of Business (auditorium now named after Paulson), $5 million to the Southampton Hospital on Long Island, $15 million to build a children's hospital in Guayaquil, Ecuador, and £2.5 million to the London School of Economics for the John A. Paulson Chair in European Political Economy. In October 2012, Paulson donated $100 million to the Central Park Conservancy, the nonprofit organization that maintains New York City's Central Park. And he has put half of his wealth into the Paulson Foundation. Today we will talk about how he got into finance, the basics of hedge funds, merger arbitrage, long/short strategy, how he predicated the fall of the mortgage market, his Big Short, his advice for everyone in the world, how he executed his trade, CDOs, credit default swaps, mortgage backed securities, assets under management used to make his Big Short, risk/return trade off, why he made the trade during a prosperous housing market, his UK and US Stock shorts, his philanthropy career, and more.Follow the podcast on Instagram @The_finanze_podcast for live updates on new episodes. You can check out our Youtube Channel at The FinanZe Podcast.Join our email list by emailing us at the.FinanZe.podcast@gmail.comIf you enjoy listening to our episodes and are learning then we'd be extremely grateful if you gave us a 5 star rating on Apple Podcasts.Enjoy the episode with one of the greats.

The Corporations Act makes a distinction between wholesale and retail clients. It is assumed that wholesale clients have a sufficient level of financial literacy to self-assess the appropriateness and risks of various investment products and to protect this own interests. As such, there are fewer disclosure obligations (and lower compliance costs) for financial services businesses working with wholesale clients.It is my contention that similar provisions should be available to banks and mortgage brokers. Often, the way you assess an application for a borrower with a net worth of $2,000 compared to a borrower with $20 million will vary. Making this distinction allow lenders to apply a more common sense approach. However, unfortunately, no such distinction exists. All borrowers are subject to the same rules, irrespective of their financial position and financial literacy.Retail versus wholesale investor rulesThe Corporations Act makes a distinction between wholesale and retail clients (or “sophisticated investors” if being offered bonds or direct shares). A wholesale client is someone that meets either of the below two tests:1. Asset test – having a net worth of over $2.5 million; or2. Income test – having a pre-tax income of at least $250,000 in each of the past two years.The Act also includes other exemptions in addition to the above including professional investor test, product value test and small business test.These asset and income hurdles were struck back in 1991 and are now vastly outdated. Adjusting for the impact of inflation, the income threshold should now be over $490,000 and asset value over $4.9 million.Wholesale clients are assumed to be financially savvy enough to make informed decisions and are able to protect their own interests. In short, they can decide whether an investment is appropriate so there's less onus on the provider or advisor. Also, there are fewer obligations (on financial advisors and product issuers) when dealing with wholesale clients such as there is no need to provide a Financial Services Guide, Statement of Advice, Product Disclosure Statements, etc.Wholesale clients are often required to confirm their status by providing a certificate from a qualified accountant.Responsible lending rules may not be changed as plannedIn September last year, the government announced that it would seek to wind back some of the responsible lending rules which I discussed here. The main proposed change was to relax the obligation for the bank to verify how much you spend (and on what items) when applying for a loan.The Bill passed the House of Representatives in March 2021 and is currently before the Senate. It is being opposed by the Australian Labor Party, the Australian Greens and some consumer groups. However, the government has reaffirmed its intention to push this legislation through. I understand that the Bill is scheduled for a second reading next week (16 June 2021). If this Bill doesn't succeed, there's an even greater need for sophisticated borrowers to be recognised.Problems with a one-size-fits-all approachA one-size-fits-all approach to assessing loans creates some perverse and frustrating outcomes. I share two common examples that we have experienced recently.Asset rich but income poorWe have recently been helping a client borrow $650,000 to purchase an investment property for $1.25 million (i.e. borrowing only 50% of its value). This client has approximately $20 million of assets in cash, shares and superannuation. It is the banks policy to ignore historical dividend and interest income and instead use a deeming rate of only 0.25%. As such, when calculating the client's income for lending purposes, the bank assumes our clients will receive only $50,000 in investment income (from $20 million of assets), which is barely enough to cover living expenses.This credit policy may be appropriate for ‘mum and dad' borrowers that might have a small parcel of shares. But there wouldn't be many people that would disagree that applying the same approach to a high net worth individual (like our client) doesn't make a lot of sense. They have significant financial resources to draw upon to meet loan repayments. If you're not going to lend to them, who will you lend to?Large offset balancesIt is common for our clients, particularly ones that are approaching retirement, to have large borrowings that are fully or mostly offset. When it comes to assessing borrowing capacity, the banks ignore money in offsets on the assumption that you could spend it, and if you did, you would incur interest in respect to the mortgage.However, common sense suggests that someone with $2 million in an offset account has demonstrated a long history of making prudent financial decisions. As such, it is unlikely that they will spend all this money frivolously tomorrow. In fact, one could successfully argue that the mere fact that they have $2 million in their offset is the strongest evidence that they are prudent money managers and can afford to service additional debt.It is time to introduce a new category of borrowers: sophisticated borrowersThe government began to tighten credit rules back in 2009 after the GFC. By the time the banking Royal Commission started in 2017, most of the regulatory holes had already been plugged. Of course, prior to 2009 the laws were too loose and they didn't protect consumers adequately. It makes absolute sense that banks and mortgage brokers have an obligation to ensure clients can afford a loan.But it also makes sense that different people should be treated differently. The Hawke government, which drafted the wholesale client rules that apply for investments, realised that higher net worth people have the capacity, knowledge and experience to make prudent decisions and protect themselves. As such, they don't need the same levels of protection.It is my view that credit laws must make the same distinctions. Higher income earners and high net worth persons are usually able to assess whether it is prudent for them to take out a new loan. Also, the approach to assess a loan for a high net worth individual should allow a bank to rely on financial resources, not income, to demonstrate the capacity to service a loan.Perhaps the definition of a sophisticated borrower could be someone that has an income over $400,000 p.a. or net worth over $3.5 million or aggregate borrowings over $3 million. The exact hurdles are obviously open for debate, but this is merely an example.The current system is brokenThe fact that someone with several millions of dollars in the bank is subject to the same assessment as someone with very little financial resources highlights that the current regulations are inadequate. Banks must be given a robust framework but enough discretion to operate within that framework to achieve acceptable outcomes. Distinguishing between retail and sophisticated borrowers seems to be a logical step in the right direction.

Mortgage Stress and How to Avoid it, South Australia's economic performance, Responsible Lending and much much more!! Give us a follow on whatever podcast platform you're listening to us on, and feel free to get in touch through our facebook page! The content discussed in this episode is general advice only, and doesn't take into consideration the individual circumstances of the listener. Any listeners should consider their personal situation and seek professional advice and assistance if needed. You can visit our website here: https://www.moneysaverhomeloans.com.au/

The appalling proposed changes to Responsible Lending got stalled in the Senate last week. But the Government is going to try and convince the cross-benches they should be passed for the sake of the SME sector. However, this is absolute misdirection, as SME lending (globally as well as locally) are impacted by a range of … Continue reading "The SME Responsible Lending Misdirection [Podcast]"

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. Join Alex Whitlock and Annie Kane as they discuss why the Senate economics legislation committee believes responsible lending laws should be repealed, the arguments for and against the move, and the government’s new initiative to help SMEs coming off JobKeeper. This week, they discuss: - The recommendations of the Senate inquiry into the repeal of responsible lending oblgations - How house prices, auctions and arrears are faring - The SME Recovery Loan Scheme And much more!

My final plea to the Senate to oppose the proposed changes to Responsible Lending rules when its debated tomorrow. We do not need more irresponsible lending, and we need people to champion the interests of ordinary Australians, not just the banking sector. Apart for significant misinformation and spin about the proposed changes, Commissioner Hayne in … Continue reading "Labor, Cross-benches: Stop This Lending Disaster! [Podcast]"

Financial Counselling Australia CEO Fiona Guthrie joins Brooke Corte. See omnystudio.com/listener for privacy information.

North Carolinians Stressed and Struggling with Student Debt During the Pandemic Economy The post Center for Responsible Lending’s Director of NC Policy Rochelle Sparko appeared first on NC Policy Watch.

North Carolinians Stressed and Struggling with Student Debt During the Pandemic Economy The post Center for Responsible Lending’s Director of NC Policy Rochelle Sparko appeared first on NC Policy Watch.

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(https://www.forbes.com/sites/davidbressan/2020/09/30/for-the-first-time-scientists-successfully-extract-dna-from-insects-embedded-in-tree-resin/?fbclid=IwAR1vOmUVC2ehEZh6Fxwu2v69wNuWvYdYAu-9v8-aWyo3ltrnDclOZJ1K0HE#4f62754d1445) https://www.bbc.com/news/world-us-canada-54294244 https://www.msn.com/en-au/news/australia/government-ban-on-nt-independent-news-outlet-sets-dangerous-precedent-experts-say/ar-BB19xNXd (https://www.msn.com/en-au/news/australia/government-ban-on-nt-independent-news-outlet-sets-dangerous-precedent-experts-say/ar-BB19xNXd?li=AAgfYrC&ocid=mailsignout) https://www.theguardian.com/australia-news/2020/sep/30/agency-that-uncovered-sports-rorts-will-be-forced-to-cut-back-on-audits-without-budget-rescue https://www.vice.com/en/article/m7j8da/baby-shark-oklahoma-county-jail https://thenewdaily.com.au/news/2020/10/12/coronavirus-surfaces-csiro/ https://www.perthnow.com.au/news/coronavirus/csiro-study-reveals-coronavirus-survival-times-on-surfaces-such-as-phones-and-banknotes-ng-b881690609z https://thenewdaily.com.au/news/2020/10/05/albanese-centre-for-disease-control/ https://www.abc.net.au/news/rural/2020-10-09/first-hemp-licence-granted-in-northern-territory/12746638 (https://www.abc.net.au/news/rural/2020-10-09/first-hemp-licence-granted-in-northern-territory/12746638?utm_medium=social&utm_content=sf238658996&utm_campaign=fb_abc_news&utm_source=m.facebook.com&sf238658996=1&fbclid=IwAR1GV8X11FxcaqY5rjZHBggzpnaobRyDRe1jmcI_pOhMAEhagDdIF48sORE) https://www.cnet.com/news/nasa-is-launching-a-4g-phone-network-on-the-moon/ https://www.theverge.com/2020/10/9/21509035/yelp-alert-business-accused-racist-behavior-reviews https://www.bbc.com/news/world-australia-54819803 https://boingboing.net/2020/10/30/play-doh-for-grown-ups-smells-like-adult-things-overpriced-latte-mom-jeans-and-more.html 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(https://finance.yahoo.com/news/facebook-sends-world-warning-threat-225035728.html#:~:text=Facebook%20Inc.%20has%20flashed%20a,pay%20media%20companies%20for%20stories.&text=The%20Australian%20government%20has%20said,revenue%20to%20Google%20and%20Facebook) https://www.afr.com/companies/media-and-marketing/google-to-pay-us1b-for-news-but-australia-depends-on-accc-code-20201001-p5618b https://www.abc.net.au/news/2020-04-20/queensland-home-schooling-technical-issues/12163934 https://www.theage.com.au/culture/art-and-design/australia-council-pulls-funding-for-self-insemination-art-project-20201008-p5635x.html (https://www.theage.com.au/culture/art-and-design/australia-council-pulls-funding-for-self-insemination-art-project-20201008-p5635x.html?fbclid=IwAR0xAogEs67zKR1tEd_wMWRWhmb47xQpWutt6YVKDUzlMDZXTufiQg7exSc) https://mumbrella.com.au/foxtel-secures-further-10m-funding-from-federal-government-635701 https://www.theguardian.com/media/2018/nov/23/paul-murrays-hot-mic-admission-sky-news-at-night-is-a-liberal-echo-chamber #Justforfunny #MattHarvey #Bearerofweirdnews #News #Humour #Satire #Weirdnews #Auspol #Corruption #GladysBerejiklian #DarylMacguire #AustraliaCouncil #Scomo #QLD #VIC #SA #Australia #UK #NSW #Mygov #Censusfailure #ABC #CoruptionWatchdog #VICE #TheGuardian #SSNews #SMH #TheAge #BigFourBanks #Westpac #CBA #ANZ #NAB #ART #NewsCorp #MurdochRoyalCommission #KoalaKiller #Medicare #MichaelWestMedia #CashlessWelfareCard #GFC #GlobalFinancialCrisis #Recession #NT #CBD #NTIndependent #NASA #4G #CDC #JobSeeker #JobKeeper #AlanJones #AlexLee #Amazon #Coronavirus #COVID19

A recent review of the "buy now pay later" industry by ASIC showed an increase of 90 per cent in these kinds of purchases. Consumer advocates want better protections for the financially vulnerable, and regulation of the sector generally, but in the meantime, are they a good option for your Christmas purchases?

https://propertyplanning.com.au/propertyplannerbuyerprofessor/In this week's market update on the Property Planner, Buyer and Professor Podcast, the team analyse the factors playing out in Australia and abroad that are shaping our economic recovery and property market growth, as Dave, Cate and Pete take you through:1. All aboard as the last of the big banks revise their property forecast UP for 2021!ANZ is the last of the big 4 bank dominos to fall, and revise up their previous gloomy 2021 predictions for the property market. As we shared in April, we expected the market to fall by less than 5% and in early October we predicted 10% + growth in 2021, and more to come in 2022. Now the banks and other economists have adjusted their views.2. The peak to trough fall in values from Covid well within our predicted 5% bandThe impact of the Covid pandemic on property values from peak to trough was a modest decline of 1.7% for the entire Aussie property market and 2.8% for capital cities. CoreLogic data tells us that the Melbourne market bottomed on Oct 18 and the Aussie market a week earlier. In the Podcast we called the inflection point in late September due to data lag. Once again, many analysts have egg on their face, predicting cataclysmic price falls. Perhaps we need to have a Podcast on why macro- economic experts still do not understand the true drivers of the residential property market!3. The Melbourne property market has joined the party.Melbourne property values are surging with CoreLogic showing growth in values since mid to late October, auction clearance rates surpassed Sydney on the weekend and all signs point towards a larger recovery, because of the larger fall and Melbourne was on a tear leading into Covid. This has been playing out at the coal face since the start of October.4. The kiwi property market, a look into our future?The New Zealand government went hard and fast locking down to stamp out Covid. The effective eradication of the virus along with significant stimulus and with interest rates has resulted in median property values rising a whopping 11.1%! This trajectory means that the Reserve Bank of NZ is talking about macro prudential measures, such as restricting LVRs to slow down the property market already. We have predicted this kind of intervention will be on the cards for Australia towards the end of 2021 or into 2022 as APRA has proven it works.5. We explain some key reasons why we predicted property values would surgeFor starters, debt serviceability is the lowest it has been since 2001. Interest repayments as a share of total household incomes are the lowest they have been since March 2002. The Australian property market has provided zero net capital growth for about four years now. The unfortunate reality is that despite so many people having such a difficult time, many of them were young people in part-time and casual work and not on the property ladder. A larger cohort of people have the greatest level of savings on record and benefited from stimulus which they can now deploy in investments.6. The repeal of ASIC's Responsible Lending obligations is looking increasing likely!At the AFR Banking and Wealth Summit during the week, treasurer Josh Frydenberg ratcheted up the pressure on regulators to ensure they played their part, which acting ASIC chairwoman Karen Chester indicated she had heard loud and clear. The ASIC chairwoman painted the picture of a clear pivot of ASIC's position and it provided another sign that the Morrison government will ensure that the recovery is not hampered by lack of access to credit.7. Why property value increases will not be halted by the end of JobKeeper and loan repayment pausesThe trio explain the critical drivers that will continue to put upward pressure on values.8. Explain why the latest cash rate drop was not about reducing interest rates for borrowersWhile the low-rate environment is doing wonders for our debt=to-income ratio, it's not the primary reason why the RBA has been steadily lowering rates. The Property Planner, Buyer and Professor explain the real reason behind the rate cuts which are primarily about keeping our exchange rate lower and creating jobs which are more important than focusing, or worrying about excessive inflation.9. Banks forecasting an ever-improving positive outlook for GDP and unemploymentGovernment stimulus, our proven ability to suppress Covid, successful vaccines, the property market in full rebound mode and the expectation of record-breaking internal tourism all points to updated forecasts for superior GDP growth and reduction of unemployment in 2021, with one major back predicting unemployment to be as low as 5.75%.10. We touch on the big news in the NSW budget, with the plan to make stamp duty optionalWe take a high-level look at this potential transition from stamp duty to a yearly tax on property and our hosts provide some different perspectives on what this could mean, but it is only early days yet.11. Listen to some of our predictions back in April and MayFor perspective, we suggest that you listen to our market updates during the early stages of the Covid pandemic where we discuss why a downturn is usually the best time to buy property and a number of the factors that we expected, and have, played out now because history may not repeat, but it sure does rhyme!Market update 5 recorded 20/4/20 - “The green shoots – what are the early signs of market recovery?”Market update 6 recorded on 27/4/20 - “Getting your ducks in a row before the economy opens up!”Market update #7 recorded on 5/5/20 - “Recovery lessons from recent recessions, the great depression, GFC & Spanish Flu – the market forecast”12. And of course, our ‘gold nuggets'!Visit the show notes - https://propertyplanning.com.au/market-update-15-where-we-are-headed-bank-predictions-rba-governor-speaks-nsw-abolishing-stamp-duty/

Mortgage and Finance Leader gives you a unique insight into the mindset of the most influential figures in Australia's $2 trillion mortgage industry. Join host Alex Whitlock as he invites his guests to open up on the biggest issues and opportunities facing the mortgage and finance industry. In this episode Mario Rehayem reveals his take on Responsible Lending and what lies ahead, why Australia has coped better than most with COVID-19, the rising demand for brokers and what's driving the next the housing market cycle.

Mortgage and Finance Leader gives you a unique insight into the mindset of the most influential figures in Australia's $2 trillion mortgage industry. Join host Alex Whitlock as he invites his guests to open up on the biggest issues and opportunities facing the mortgage and finance industry. In this episode Mario Rehayem reveals his take on Responsible Lending and what lies ahead, why Australia has coped better than most with COVID-19, the rising demand for brokers and what's driving the next the housing market cycle.

The Government is concerned that economic activity is being stymied by the restrictive lending provisions of the the National Consumer Credit Protection Act.

Welcome to Finance and Fury, the Furious Friday edition. In this episode – we will be going through the potential changes to the current Responsible lending laws that may occur next year – as these laws will either be watered down or completely removed -   As it stands - The government has plans to reform responsible lending laws to reduce “the cost and time it takes consumers and businesses to access credit” These proposals are part of the Federal Government’s economic recovery plan - to allow people to borrow more money without having to meet the current eligibility requirements – like serviceability of loan repayments So there are likely going to be some pros and cons to this – both for the individual and the economy at large – so lets break this down further To start with - what are the current responsible lending laws in Australia These are set out in the The National Consumer Credit Protection Act 2009 – these laws went into place after the GFC – to try and avoid a situation like what the US had with their lending environment – where people who couldn’t afford loans were still given them – it is a system of greater individual responsibility where it required individuals to assess their borrowing capacity – but ASIC stepped in as part of consumer protection It went into force at the start of 2010 – and it outlines and legislates how lenders (such as banks or credit unions) must act when they are assessing loan applications Essentially, it means a lender must only give a loan if it is suitable for the borrower. Importantly, the existing rules put the responsibility on the lender to ensure the credit product is suitable Whilst this was in legislation – it wasn’t really enforced well up until the start of 2017 – and things started ramping up in 2018 and 2019 – as Banks were forced to start Looking at actual expenses – forced by ASIC introduced changes to the National Consumer Credit Protection (NCCP) Regulatory Guide 209 ‘Credit licensing: Responsible lending conduct’ (RG 209) RG 209 does stipulate – basics - source of income, fixed living expenses (rent, repayment of existing debt) and variable living expenses (food and utilities), Also - “reasonable inquiries” into Entertainment, takeout, alcohol, gambling, tobacco, ATM withdrawals – however these reasonable inquiries In the past – Went off the HEM benchmark Looked at where you lived, single/couple/kids/etc, income and estimated expenses based on categories of lifestyle – Student, Basic, Moderate, Lavish – what would most people say is their expenses? Average – basic is the average right? Example – couple living in a major city with combined incomes of $160k p.a., assumed monthly expenses are $3,060 p.m. – Any annual earnings above $240k p.a. – Expenses capped at $4,040 p.m. assessment The new assessment that started around 2018 started to reduce borrowing capacity - ANZ economist estimated that household borrowing capacity has been reduced by about 30% due to increase in requirements on the banks in the past few years – but then the banks hurdle rates for assessing servicing got changed from the standard of 7.25% to 2% above the current variable rate – so at this stage around 5.5% or so – changes from bank to bank – helped to rectify things a bit So the banks still need to make reasonable inquiries and verify their financial situation the government has decided it’s time to amend regulations again in a bid to reduce red tape and increase the flow of credit – Some of the justification for this is to try and boost economic growth – but will it? Time will tell – but it probably will at least help property prices – come back to this So how exactly could the responsible lending laws be changing The proposed change to the law would see responsible lending obligations removed from the Act - if passed by Parliament – it would come into effect from March 2021 Around the same time as the bank holidays would be ceasing on a lot of households – as well as the jobkeeper and seeker payments The plan, according to the government, is to remove the obligation on lenders to ensure that loans they issue are suitable for their customers This is primarily on the mortgage side of things – where there is collateral if the borrower defaults – This isn’t going to be updated for smaller amounts of credit or consumer leases – so things like credit cards, personal or pay day loans Ironically - the government actually plans to strengthen the legislation to protect consumers from what they call predatory lending practices of debt management companies around the same time – so personal loan or pay day lending companies However - for those borrowing money on property – these changes would implement what could best be described as a “borrower responsibility principle” – as lenders would be able to rely on the information provided by their customers and lend based around this – rather than conducting their own reasonable investigation Whilst these laws may get watered down - the government has stressed that some of the other existing lending obligations on banks - such as APRAs lending standards are going to remain in place and actually expand to other types of lenders Most of these APRA standards relate back to the Basel regulation – particularly Basel III – which has the capital adequacy requirements – actually went through this a few months ago in an episode called “Why do banks seem to have the ability to lend never ending amounts of money?” This could have an implication for some ADI and non-ADI lenders – the big 4 can easily raise their capital adequacy requirements – issue more shares, or capital notes, or keep more reserve requirements and lend less to businesses to reduce the portion of their RWA – while increase their tier 1 capital – but other non-listed lenders may struggle to keep up with these requirements But the major changes of removing the responsible lending laws is a big one – so what does this mean for home loan applications? Creates a new environment on how Australian borrowers are assessed – due to the potential relaxation of these laws – the responsibility for lending is in the individual’s hands Technically it always has been – if you default – you are still responsible – however the bank used to try and avoid a situation where you would default – by assessing your ability to repay your debts These laws in practicality could be a shift back to more of a HEM style system – rather than banks going through your CC or bank statements line by line – it could go back to a rough estimation based around what the borrower tells the bank they spend If this is the case – the individual will need to be responsible for getting this right – you could always under estimate what your expenses are – but this may just hurt the borrower – if you can’t afford the loan repayments Whilst the banks won’t entirely cease their responsible lending obligation – they ideally wish to lend money There are some pros and cons to this – The pro is that individuals can now borrow more without jumping through the banks red tape – the con is that now individuals can borrow more without jumping through the banks red tape – this could be a double-edged sword - This could have major ramifications on the individual but the property market and the economy at large There has been a fair amount of backlash over this change – especially from some consumer advocacy groups – saying it “will cause harm to people and the economy” There was a joint statement you can go and read released by CHOICE, Consumer Action Law Centre, Financial Counselling Australia and Financial Rights Legal Centre – in this they said that these changes would open up “new opportunities for banks to aggressively sell debt” – so the concern is that banks will push people into borrowing money But there needs to be buyers out there for someone to sell to – this is the major issue of these changes – if there is no individual responsibility, then this could lead to ruin for many families – and set off If people lived within their means – then it will just be easier to get the correct level of finance It can be temping – property prices are high – so more debts are needed But consumer protection is twofold – the government can try and protect you – but at the same time – the end responsibility does lie with the individual as they are the ones that suffer the consequences – consumer advocates say that weaker lending standard will mean people will be loaded up with as much debt as possible – but this implies that banks will be forcing people to borrow this money – sure, banks will lend as much as possible – it is how they make money – but they need willing people to take on this debt At the moment where we stand as a nation – and the world at large – is that the major problems most economies face is too much debt – so this police has the potential to further this problem – but again – only if individuals choose to do so – and take out additional borrowings More debt – especially if it gets to unsustainable levels can hurt the individual if they borrow too much – or if interest rates rise in 5-10 years’ time Banks unsurprisingly are loving these changes – less administration for them and they can also lend more funds CAR isnt really an issue for them – Bank share prices have responded well to these changes also – following the initial announcement The banks do say that they are still going to only lend to borrowers who can meet their financial obligations When looking at the mortgage broking industry – they have Best Interest Duties coming in next year – so they will need to conduct an investigation to assess if the loan is right for a consumer – where they can be legally liable if not based around ASICs determination – however – it will be good for banks which don’t have a best interest duty –   Things to watch out for – just because the bank will lend you money – doesn’t mean you should take it There is little doubt that the removal of responsible lending obligations should make it easier to get a loan – if these changes come into effect in March 2021 So you would think that it may be easier for first home buyers to buy a house – however – not if property prices continue to rise Whilst it may be easier to get a loan – the size of the loan may be a problem – as more people will be able to borrow more – and those borrowing will flow into property – pushing up prices For property prices – if people can borrow more – it creates additional borrowing capacity and with it – greater levels of property price growth – in the short term – unless people start to default So, more competition and larger loans leads to a situation of higher home prices – so even if you can get a property – the repayments due to the size of the debt may be larger – You may be able to borrow those funds – but will it help you long term? This comes back to the broader economic problems that Australia and most of the world currently face Australian households are already heavily indebted - the second most in the world after the Swiss and slightly ahead of Denmark This could yet be another method of kicking the can down the road – creating a further bubble in property and one that could lead to wide spread economic woes – If people borrow a lot more – and actually cant afford this – if interest rates do rise – then we may see our own form of defaults – like a mini-GFC- Banks may be in trouble then if property prices as collateral don’t recoup the losses on the defaults on the loans – as may be the case if prices drop 20% or more But with their CAR and the bail in laws – as well as the bail out laws – banks will survive – but the wide spread economic collapse and shock to confidence as well as a lack of consumer spending during this time could create a major economic downturn In an ideal world – it is nice to say that those who borrow will be responsible for their levels of debt – as if people borrow within their means then this wouldn’t be a problem – and it may never be if interest rates remain at near 0% for the foreseeable future – but some further economic shocks could create a situation of defaults on unaffordable debts Thank you for listening to today's episode. If you want to get in contact you can do so here: http://financeandfury.com.au/contact/

The High Court of Australia rules that a company that buys used empty computer print cartridges, refills them with ink and sells them to consumers is not infringing the patents of the original manufacturer. Protecting Consumers vs Streamlining Access to Credit. With the aim of getting the economy moving and consumers spending, the government hopes to loosen 'responsible lending laws' contained in the National Consumer Credit Protection Act.

The High Court of Australia rules that a company that buys used empty computer print cartridges, refills them with ink and sells them to consumers is not infringing the patents of the original manufacturer. Protecting Consumers vs Streamlining Access to Credit. With the aim of getting the economy moving and consumers spending, the government hopes to loosen 'responsible lending laws' contained in the National Consumer Credit Protection Act.

http://propertyplannerbuyerandprofessor.com.au/In this week's episode of the Property Planner, Buyer and Professor Podcast, the team delve into the planned upcoming changes to responsible lending legislation and what this will mean for the property and mortgage market, as Dave, Cate and Pete take you through:Weekly market insights1. Property values continue to climb. Despite the economic recession, property values have remained resilient. We expect strong activity to continue right up until the 24th of December and into the new year.2. Beware the data lag. As property data is collected at settlement, we typically see markets shift faster than the data comes through. The increased time for approvals and many homes under ‘subject to' clauses means that data received is even further behind the actual date of the sale.3. Record number of first-time buyers and mortgage approvals. First home buyers have flocked into the market with more people than ever before getting their foot in the property door. Mortgage approvals have also hit high levels, creating the perfect storm for fervent market recovery. Supply is starting to come back on board, which could slow down the growth in property values, although with the rate of new market entrants and positive buyer sentiment, this is questionable.Responsible lending repealWhat is responsible lending and when did it begin? Post the GFC there was a crackdown in high-risk lending, which led to responsible lending obligations being legislated by the Rudd Government in the National Consumer Credit Protection Act 2009 (Credit Act). The trio translate the complicated legalese of the current obligations to simple terms.The reasoning behind the repeal. The Property Planner, Buyer and Professor delve into the purposes of the repeal and whether it is likely to be effective at meeting the government's goals.When did applying for credit get tough and what instigated it? Over the last 10 years a litany of cascading events have resulted in a gradual creep of lenders and borrowers being faced with overly prescriptive, complex and onerous processes, which really gained pace from 2014 when APRA started to put limits on lending and calls began for a Banking Royal Commission.What are the changes in lender behaviour we're likely to see? The reduction in red tape is likely to see many positive impacts in speeding up the process of approvals, but be warned, the model will switch from ‘lender beware' with a ‘borrower responsibility' principle. What does that mean for your loan application?Borrowing capacity set to increase. Reduction in assessment rates could see borrowing capacity skyrocket, opening the door for prospective purchasers to up their limits.Gazing into the property market crystal ball. The Planner and Professor make their predictions 2021 and 2022.Consumer protections, who will be looking after you? With the litigious ASIC out the door, the APRA watchdog will be the sole enforcer of responsible lending obligations. But never fear, the freshly legislated best interest duty will be picking up the slack. The trio explain how.How does this relate to mortgage brokers? Interestingly, a significant amount of paperwork that mortgage brokers are currently required to complete and provide to clients could be scrapped entirely. Watch this space.What other areas are the government targeting? Key areas of reform that haven't received as much media spotlight are business loans and non-bank lenders. We cover off on the planned evolutions to streamline business lending and further protect vulnerable consumers by raising standards for the second and third tier lenders.And of course, our ‘gold nuggets'!Visit the show notes - https://bit.ly/3n7vcMK

In this Podcast, Dien Le and James Angus (Bluestone Mortgages Chief Customer Officer) had a candid chat about the Federal Budget, the easing of Responsible Lending and how that may have an impact on broker business. Also discussed was an insightful look into the operations of how Bluestone worked with brokers in the current market, FY20 results, the impact of COVID-19, and Bluestone's roadmap for the next 12 months and beyond. Some exciting products in development and one coming to the market next week like a 90% LVR with NIL RISK /LMI at 3.59% (3.60% comparison rate) being one of them. Full doc, owner occupied purpose only. Metro Melbourne and Sydney postcodes, Brisbane Metro to come at a later date. So listen in and then get in touch with your Bluestone BDM today! **Interest Rates are correct as at 15/10/20 and subject to change at any time. The comparison rate is based on a loan amount of $150,000, over a 25 year term. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.

The federal government recently announced proposed changes to responsible lending obligations. If you’ve consumed any media coverage on this topic, then chances are you’ve heard that it’s a bad thing. And well, I wouldn’t blame you for thinking that removing responsible lending obligations is a bad thing, I mean we all want banks to lend money responsibly don’t we?Do these proposed changes mean that the banks are going to be throwing money at people willy nilly?Are the most vulnerable people in out community going to put at financial risk?In this episode, I chat with a well known finance figure here in Australia, Brett Mansfield the CEO of Buyers Choice. We’re going to give you the real deal, the unsensationalised information on:What responsible lending meansThe proposed changesHow the proposed changes could affect people looking to borrow money (for a home loan for example) and the flow of creditFollow Brett Mansfield and Buyers ChoiceWebsiteFacebookLinkedInFollow the Dream Home MovementFacebookInstagramFollow Carl and Jo VioletaFacebookInstagramWeb

Last week's announcement of plans to overhaul responsible lending obligations will make it easier to get a loan, but consumer advocates say it could also lead to more families falling into debt.

Welcome to the Australian Property Podcast - Hosted by Jonathan Preston In this episode, we talk about the end of responsible lending. We will be back with new content for the next episode next week, so be sure to check back soon.

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. Join Alex Whitlock and Annie Kane as they discuss the big announcement over the removal of responsible lending obligations - and what this means for lenders, brokers and customers. Alex and Annie discuss who is actually responsible for expenses in mortgage applications and what they think about the changes. This week, they discuss: - Where responsible lending obligations were a roadblock - How auctions are faring - Plenti’s listing onto the ASX And much more!

The easing of responsible lending laws saw the banks back in favour with investors helping the ASX 200 to a 1.5% gain. Westpac was also helped by the settlement of its anti-money laundering case with Austrac - despite the $1.3 billion bill being the biggest fine in Australian corporate history. It led the way with a 7.4% surge, followed by NAB (up 6.86%), ANZ (up 6.3%) and CBA (up 3%). Miners were also up. S&P futures are up as well indicating another positive night ahead on Wall St. Have a great weekend!Our top three VODs are:Westpac's $1.3b fine will hurt its dividend; CBA is still pick of the bunchPrefabricating data is no walk in the cloudPioneer back on the boards after agreeing to $190m debt package See acast.com/privacy for privacy and opt-out information.

We discuss today’s changes to responsible lending. More unnatural acts..

Labor and consumer finance advocates are warning the changes will lead to more Australians taking on unsustainable levels of debt.

SBS Finance Editor Ricardo Gonçalves speaks with Scott Phillips from the Motley Fool while Choice CEO Alan Kirkland explains the pitfalls to the government's rollback of bank lending rules.

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. Join Alex Whitlock, Annie Kane and Charbel Kadib as they discuss what Australia's recession means for mortgages, why two major bank CEOs disagree over responsible lending guidance, and why a Senate committee does not believe screen scraping should be banned. This week they discuss: - Australia's largest quarterly GDP contraction on record - The beginning of the end of repayment deferrals - The recommendations from the Senate's interim report on fintech and regtech And much more!

Yellow Brick Road chairman Mark Bouris on why the big banks are reluctant to lend as liberally as they once did.  See omnystudio.com/policies/listener for privacy information.

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. Join Alex Whitlock, Annie Kane and Charbel Kadib as they delve into CBA's full-year results for FY20, Athena Home Loans' innovative new mortgage product, and Philip Lowe's recent comments about current responsible lending and stamp duty legislation. This week they discuss: - Matt Comyn's changed position towards Aussie Home Loans - How AcceleRATES rewards borrowers for paying down their loan - The Adviser's free Business Accelerator Program coming up next week

Kia ora,Welcome to Thursday's Economy Watch where we follow the economic events and trends that affect New Zealand.I'm David Chaston and this is the International edition from Interest.co.nz.Today we lead with news bad corporate behaviour is in the news today.But first in the US, there more evidence that American are restraining their spending. May consumer credit balances fell more than expected and taking the consecutive declines to three months. The May -5.3% drop has compounded to -30% in the past three months as wallets remain closed. This will is a core contributor to the US and worldwide recession and indicates it will be very deep and longer lasting than some analysts have assumed. While the June data is likely to show the decline hesitated, July data will almost certainly show it retreating again.The OECD released updated corporate tax tracking data overnight and they say it shows there is a misalignment between the location where profits are reported and the location where economic activities occur. Revenues per employee tend to be higher where tax rates are zero, and in investment hubs (where the predominant business activity is “holding shares and other equity instruments”). On average, the share of related party revenues to total revenues is higher for multinationals in investment hubs. Visa and Mastercard are the icon businesses that show these traits.A new report, which Facebook itself commissioned, says the social media network has not done enough to protect users from discrimination, falsehoods and incitement to violence. The findings come as the company gives a free-pass to the US President to post any false narrative and amplify divisive and unfounded rumours, and it will add to pressure on the company in the midst of an advertiser boycott which now is up to more than 900 major advertisers. There is little evidence however that New Zealand companies are boycotting the platform, despite one of the worst uses originating here (the Christchurch mosque shooting livestream). Basically, Facebook doesn't care. Facebook is also a company that uses the tax avoidance strategies identified by the OECD.In Australia, regulators and bankers are colluding to sanitise bank financial results. When a customer can't pay a debt, it is impaired. If they can't pay when it is due, it is past due. But the ABA is extending the pandemic deferral program for many customers who can't pay by another four months. And APRA, in conjunction with ASIC, is actively encouraging the move, giving cover to bankers not to provision such loans. It is a twist on 'responsible lending' both regulators would prosecute if they weren't party to it. Deferring loans might be a good moneymaker, until the customer can't pay. Then the regulators will expect the shareholders to take the loss which will be much larger than it if was just recognised when it first occurred. It amazingly irresponsible regulation - and banking. Both just recently signed up to responsible lending practices. You do wonder what the auditors will think.Wall Street is pretty much unchanged today, up just +0.1% in early-afternoon trade. They follow European markets which were quite negative overnight, all down about -1%. Yesterday, Shanghai firmed sharply at the end of its trading day, up +1.7% to continue its heady bull run. Hong Kong up +.06% but Tokyo was -0.8% lower. The ASX200 also had a down day, dropping -1.5% led by investors downgrading banks. Meanwhile the NZX50 Capital Index fell -.03%.The latest compilation of COVID-19 data is here. The global tally is 11,892,400 and that is up +244,000 since this time yesterday. Global deaths reported now exceed 545,000 (+5000).A quarter of all reported cases globally are in the US, which is up +58,600 overnight to 3,120,500. US deaths now exceed 134,300. The number of active infections in the US is now up +22,000 to 1,613,100.In Australia, there have been 8886 cases, another +131 since this time yesterday, and still concentrated in Melbourne which is now in a new lockdown. Their death count is unchanged at 106 and 8 people are now in ICU. Their recovery rate has slipped back further to 84%. There are now 1293 active cases in Australia (up +100 in a day).The UST 10yr yield is marginally softer at just under 0.65%. The gold price is up by another +US$14 to US$1,811/oz a new nine year high and now within 5% of its all-time high.Oil prices little-changed. They are still just over US$40.50/bbl in the US and the international price is still just under US$43.50/bbl.And the Kiwi dollar has stayed firm at now just over 65.7 USc. On the cross rates we are unchanged at 94.2 AUc. Against the euro we hanging in at 58 euro cents. That means our TWI-5 is still at 70.3 and its highest since January.The bitcoin price firmer overnight, up +1.4% to US$9,419.You can find links to the articles mentioned today in our show notes.And get more news affecting the economy in New Zealand from interest.co.nz.Kia ora. I'm David Chaston. We will do this again, tomorrow. 

In today's Daily Download episode, HousingWire interviews the National Association of Real Estate Brokers President Donnell Williams about the organization's mission as well as a recent town hall meeting NAREB conducted to gauge strategies that are aimed to increase black homeownership.For some background on the episode:In a town hall meeting hosted by the National Association of Real Estate Brokers on Thursday, members of the real estate community came together to discuss inequalities in Black homeownership and how to remedy them.Strategizing Black homeownership, down payment assistance and fair housing were just some of the topics brought up in the hour-long video discussion. Another large portion of the conversation was directed to Black homeowners with mortgages underwater.Nikitra Bailey, executive vice president at the Center for Responsible Lending, said that Black homeowners lack the same amount of equity as white homeowners due to being in an underwater mortgage, owing more than the home is worth.“We are at a point of reckoning in our country,” Bailey said. “Our nation's discriminatory practices and how they are at the root of many of the injustices that we see people, leading protests calling for repair for, we know that the COVID-19 pandemic is falling disproportionately on Black communities because of the structural discrimination. So structural and historic discrimination has left our families more vulnerable.”The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode:NAREB town hall: Here are strategies to improve Black homeownership

The Paycheck Protection Program or PPP provides federally-backed forgivable loans to businesses whose revenues may be impacted by the COVID-19 crisis. According to the Center for Responsible Lending, little of the $659 billion fund has made it to Latino and Black-owned businesses, despite being the communities hit hardest by the crisis. NewsHour Weekend's Ivette Feliciano reports. PBS NewsHour is supported by - https://www.pbs.org/newshour/about/funders

Debby Irving, author of “Waking Up White,” on what whites need to know about racial equality. Ashley Harrington, Center for Responsible Lending on minority-owned businesses. Gillian Sandstrom, Univ of Essex, on missing strangers. Stacy Wolf of Princeton Univ on “Beyond Broadway: The Pleasure and Promise of Musical Theatre Across America.” Kristen Wenz, global expert on human rights and development, on birth certificates.

The coronavirus pandemic has wreaked havoc on small businesses from across the Columbus community – but Columbus Urban League CEO Stephanie Hightower says that “We may be in the same storm, but we're not in the same boat.” Minority-owned businesses have been disproportionately impacted, Hightower said in Columbus Business First's latest episode of our new Crisis Management podcast. “We all know that this pandemic particularly is disproportionately going to impact minorities and communities of color,” Hightower said. That's apparent looking at data from those who are being laid off and furloughed, to the access by business owners to needed capital to keep their businesses afloat, Hightower said. A May report from the U.S. Department of Labor found that while the white unemployment rate was 14.2% in April, but it was 18.9% for Latinos and 16.7% for African Americans. In addition, a report from the Center for Responsible Lending estimated that more than 90% of African American-owned businesses did not receive Paycheck Protection Program loans. Part of the reason, Hightower said, is that many don't have deep relationships with traditional financial institutions that were working on loan applications. “When it was time to apply for those PPP dollars they didn't really have anybody to call, and weren't comfortable calling anybody,” Hightower said. That is why the Columbus Urban League recently launched a Minority Small Business Resiliency Initiative. This initiative “provides technical, financial, and strategic advice to minority and women-owned businesses,” according to the Urban League. So far, about 325 inquiries have come in for assistance, Hightower said, and about 50 companies have been approved for more than $3.7 million in loans. “What's really great is that we've been able to save 895 jobs ... because of our efforts,” Hightower said.

The coronavirus pandemic has wreaked havoc on small businesses from across the Columbus community – but Columbus Urban League CEO Stephanie Hightower says that “We may be in the same storm, but we’re not in the same boat.” Minority-owned businesses have been disproportionately impacted, Hightower said in Columbus Business First’s latest episode of our new Crisis Management podcast. “We all know that this pandemic particularly is disproportionately going to impact minorities and communities of color,” Hightower said. That’s apparent looking at data from those who are being laid off and furloughed, to the access by business owners to needed capital to keep their businesses afloat, Hightower said. A May report from the U.S. Department of Labor found that while the white unemployment rate was 14.2% in April, but it was 18.9% for Latinos and 16.7% for African Americans. In addition, a report from the Center for Responsible Lending estimated that more than 90% of African American-owned businesses did not receive Paycheck Protection Program loans. Part of the reason, Hightower said, is that many don’t have deep relationships with traditional financial institutions that were working on loan applications. “When it was time to apply for those PPP dollars they didn’t really have anybody to call, and weren’t comfortable calling anybody,” Hightower said. That is why the Columbus Urban League recently launched a Minority Small Business Resiliency Initiative. This initiative “provides technical, financial, and strategic advice to minority and women-owned businesses,” according to the Urban League. So far, about 325 inquiries have come in for assistance, Hightower said, and about 50 companies have been approved for more than $3.7 million in loans. “What’s really great is that we’ve been able to save 895 jobs ... because of our efforts,” Hightower said.

Goodwill of North Georgia President and CEO Keith Parker shares how the non-profit plans to protect staff and customers as stores and donation centers re-open. Plus, another round of funding is coming from Congress, but will minority owned small businesses fare better this time than last? Yasmin Farahi, senior policy counsel for the Center for Responsible Lending, discusses why her organization believes more transparency and guidance is needed for lenders to prioritize borrowers in underserved and rural markets

Rhythm & News interview with Charlene Crowell with the Center for Responsible Lending about the COVID-19 Stimulus Checks, who is eligible to receive them and when. Interview by Chris B. Bennett.

Today's guest hosts are Brent J. Cohen and Charlotte Hancock, Executive Director and Communications Director for Generation Progress. During this episode, they’re going to be examining yet another example of how COVID-19 has exacerbated an existing issue in this country—in this case, the student debt crisis. Generation Progress has been doing advocacy work in the student debt space for much of their existence, and it’s an issue that they feel very strongly about. The collective student loan debt owed by Americans today totals over 1.5 *trillion* dollars, and around one-third of people under the age of 35 currently have a student loan. The cost of attending college has risen dramatically in recent decades, but these advanced degrees are still considered a prerequisite for most middle-class jobs. That precarious situation combined with the rise of predatory, for-profit institutions that exploit students’ desire for higher education have resulted in many students battling climbing debt well into their careers. Now, with many people in this country out of work or losing income as a result of the pandemic, the student debt crisis is positioned to get much worse, especially for people already fighting against gender and racial wealth gaps. To learn more about what needs to be done now to protect and provide relief to student borrowers—particularly those most impacted by COVID-19—they’re joined by Ashley Harrington, senior policy counsel at the Center for Responsible Lending, and Cody Hounanian, program director at Student Debt Crisis. Here are the Twitter handles for today's guests and their respective organizations: Ashley Harrington - @achesquire, Center for Responsible Lending - @crlonline, Cody Hounanian - @chounanian, Student Debt Crisis - @DebtCrisisOrg The website for "Generation Progress" is www.GenProgress.org and their Twitter Handle is @GenProgress.  Brent J. Cohen's Twitter handle is @BrentJCohen and Charlotte Hancock's handle is @CharlatAnne.

Responsible Lending

Carzaam Automotive News Episode 10: VW - OK Honda - Opal Volkswagen accused of breaching responsible lending laws ASIC has commenced civil penalty proceedings against Volkswagen Financial Services Australia for allegedly breaching responsible lending laws just days after VW was hit with the largest penalty ever made for contraventions of Australian Consumer Law. The financial services regulator has alleged that the company failed to undertake “reasonable steps” to inquire about or verify a borrowers’ living expenses. The Volkswagen case continues ASIC’s clampdown on how lenders interrogate a borrower’s living expenses when writing loans and further tightens lending standards in an already tough automotive market. Honda to Launch Personal Assistant, “OK Honda,” at CES 2020 Backed by SoundHound Honda revealed a preview of the advanced voice technology it plans to show off at CES this year. It will feature “OK HONDA” its voice enabled Personal Assistant created in a collaboration with SoundHound, along with new ways to control smartphones from the car. The partnership grew out of SoundHound’s involvement in the Honda Xcelerator program and uses the term “OK Honda” as a wake word to allow the driver to carry out requests including running the car’s entertainment system and environmental controls. SoundHound has been accruing new automotive partners at a steady rate. Most recently, Kia announced that the Seltos line of cars will include a Houndify-based voice assistant and Hyundai has also integrated its technology on the Venue SUV. Ride hailing added to Opal app and Transport NSW Trip Planner Transport for NSW has announced that some taxi and rideshare providers are now included as an option for how people can travel to their destination in the latest iteration of Trip Planner. In addition to existing options -- public transport, walking, and cycling -- people can now view the cost and journey duration of their trips if they choose to travel with Cars on Demand, Ola, or Ingogo. The decision to offer ride-sharing and taxis comes off the back of the state government's Future Transport 2056 strategy where transport service providers were invited to share their data sets and APIs to link with Trip Planner. This represents a great step forward for mobility as a service in Australia with the NSW government showing its leadership and commitment in bringing together various parts of the ecosystem to deliver better transport outcomes. Full Episode: www.carzaam.com/blog

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. Join Alex Whitlock, Annie Kane and Charbel Kadib as they delve into the latest themes and developments in the home loan market. In this episode, they delve into ASIC's updated responsible lending guidance (RG 209), the issues with the government's First Home Loan Deposit Scheme lender panel, and new appointments at the banks. This week they discuss: - Why ASIC's RG 209 guidance has raised more questions from brokers - CBA joining the First Home Loan Deposit Scheme panel - Executive position changes within NAB and Suncorp

Thom lays out the facts we know about Jeffrey Epstein's disturbing history...... Epstein was hired by Bill Barr's father to teach high school girls, the same Bill Barr's father who wrote a novel about sex slavery. Epstein goes on to prosper in the sex trafficking business. Meanwhile, Trump's close friend Epstein introduces him to Melania Knauss, and they end up married. Epstein gets arrested and Barr recuses himself because his law firm defended Epstein, then un-recuses himself after talking with Trump. Woman files a lawsuit saying that both Epstein and Trump raped her when she was 13; it's certified by a court. Following Epstein's arrest, reports come out that Barr's Justice Department now has hundreds of videos, movies and pictures of Epstein's rich and powerful male friends having sex with the girls he's been trafficking. Barr supervises the prison Epstein is put in, where he mysteriously dies. Now cons are suggesting Bill Clinton is behind this and trending with help from foreign bots. - Thom summarizes the strangeness surrounding the Jeffrey Epstein case with Morris in Long Beach. - Was Epstein operating a honeypot? And Jean in Pennsylvania wants to know what we can do to investigate and prosecute The criminal 'Coverup-General' Bill Barr! - Thom fact-checks the Epstein case with Bob Ney of Talk Media News. - Thom reads from 'No Visible Bruises: What we don't know about domestic violence can kill us' by Rachel Louise Snyder. - Thom debates the Epstein case with a conservative who believes the right-wing propaganda stories being spread around out there. - Lisa Stifler joins Thom- she is the senior council for the Center for Responsible Lending, which is alarmed at the restrictions Trump's people are about to lift on debt collector harassment. - Thom looks at a case in Oregon where an elderly man and his wife commit suicide because of overwhelming medical bills- is this what America has come to?.. And Bernie throws down with the health insurance lobbyists.

The Student loan debt crisis is threatening a generation of college students of color and their families. The amount of outstanding debt and the number of borrowers affected have a significant impact on this country's economic well-being. The people most affected are Blacks and other minorities. This week, The Center for Responsible Lending and the NAACP released a report that outlined the problem. Ashley Harrington, Senior Policy Counsel at the Center for Responsible Lending spoke with Roland Martin about the student debt crisis and how it is a clear and present danger to African American college students. Watch the 7.25.19 edition of #RolandMartinUnfiltered https://youtu.be/lUFj5RrHTBA - #RolandMartinUnfiltered partner: 420 Real Estate, LLC To invest in 420 Real Estate’s legal Hemp-CBD Crowdfunding Campaign go to http://marijuanastock.org

With Great Power come Great Responsibility. Especially when a business is dealing with a market with 1.3 billion people. The country has made massive strives towards financial inclusion: According to the Global Findex Database, over 80 percent of the adult population now has bank accounts. A series of efforts has helped drive such progress, including Aadhaar, a verifiable 12-digit identification number issued by UIDAI to all residents of India. The Aadhaar identity platform is one of the key pillars of the ‘Digital India,’ and the Aadhaar program is now the largest biometrics based identification system in the world.In this episode of Rhetoriq's "Red Envelope", a series focused on innovation in Asia, Theodora Lau and Arun Krishnakumar talk to Lizzie Chapman, the CEO of Zestmoney. It is a B2B2C fintech company that extends consumer credit through merchants using a proprietary AI-based machine learning decision engine, leveraging data points from the consumers’ digital footprint. The solution provides dynamic credit limit based on affordability, and it is tailored for households instead of individuals - taking into account the social dynamics and needs of the Indian market. It is this kind of solution which makes Indian fintech stand out.Along with a progressive government, consumers in India are tech savvy and fast adopters of digital technologies. Mobile penetration is expected to reach 90% by 2020, which will help drive further adoption of fintech tools, increasing the potential to uplift local communities via entrepreneurship and new job opportunities.There is an untapped market for consumers who don’t have a credit card or other formal financing options. This includes the need for affordable solutions to help consumers “buy now, pay later” and help build long term credit. Zestmoney also educates consumers about their credit score through its platform - so that they can better maintain a long-term financial relationship rather than being penalized for being consistently transactional alone.Hear from Lizzie on how good the ecosystem in India is for Fintech startups. See acast.com/privacy for privacy and opt-out information.

With Great Power come Great Responsibility. Especially when a business is dealing with a market with 1.3 billion people. The country has made massive strives towards financial inclusion: According to the Global Findex Database, over 80 percent of the adult population now has bank accounts. A series of efforts has helped drive such progress, including Aadhaar, a verifiable 12-digit identification number issued by UIDAI to all residents of India. The Aadhaar identity platform is one of the key pillars of the ‘Digital India,’ and the Aadhaar program is now the largest biometrics based identification system in the world.In this episode of Rhetoriq's "Red Envelope", a series focused on innovation in Asia, Theodora Lau and Arun Krishnakumar talk to Lizzie Chapman, the CEO of Zestmoney. It is a B2B2C fintech company that extends consumer credit through merchants using a proprietary AI-based machine learning decision engine, leveraging data points from the consumers’ digital footprint. The solution provides dynamic credit limit based on affordability, and it is tailored for households instead of individuals - taking into account the social dynamics and needs of the Indian market. It is this kind of solution which makes Indian fintech stand out.Along with a progressive government, consumers in India are tech savvy and fast adopters of digital technologies. Mobile penetration is expected to reach 90% by 2020, which will help drive further adoption of fintech tools, increasing the potential to uplift local communities via entrepreneurship and new job opportunities.There is an untapped market for consumers who don’t have a credit card or other formal financing options. This includes the need for affordable solutions to help consumers “buy now, pay later” and help build long term credit. Zestmoney also educates consumers about their credit score through its platform - so that they can better maintain a long-term financial relationship rather than being penalized for being consistently transactional alone.Hear from Lizzie on how good the ecosystem in India is for Fintech startups. See acast.com/privacy for privacy and opt-out information.

Kia ora and welcome to Tuesday's Economy Watch where we follow the economic events and trends that affect New Zealand. I'm David Chaston and this is the International edition from Interest.co.nz. This podcast is supported by Hatch. With Hatch, anyone can invest in the US share markets. Last week, Kiwis buying shares on Hatch backed the tech industry and emerging sectors. Here are the top 10 most popular shares on Hatch: Starting at 10, we have: Facebook Aurora Cannabis Shopify Nvidia Beyond Meat AMD Amazon Slack Microsoft And the most popular share on Hatch last week was Tesla. Visit hatchinvest.nz to buy any of these US-listed shares. Invest dollar amounts to buy as much or as little as you like, even if it’s a fraction of a share Today this podcast leads with news Australian regulators are forcing a dangerous twist on their mortgage lending. It's irresponsible regulation in the name of "responsible lending". But first, yesterday in the glow of the trade truce announced in Osaka, equities rallied strongly. It was kicked off by a +2.2% jump in Shanghai and a +2.1% rise in Tokyo. That was followed up in Europe with gains of about +1%. Wall Street opened today in a similar mood, up +1% but it has waned as the session has developed, now drizzling away to only a minor net gain there. It is becoming clearer that nothing was actually decided between Trump and Xi and that the Chinese are unlikely to change their positions. Apart from the photo-op, we don't seem to be in much of a different place, except for a 90 day reprieve. But the US has given China time to wean itself off US products. Overnight, two separate PMI series were released in the US, both showing small retreats. Analysts had expected this because of the weakening series of recent surveys from the regional Feds. Meanwhile, construction spending in the US is falling. In May, it was down -2.3% from the same month in 2018. All this fits into a global manufacturing sector that is at its lowest point since October 2012 and in a contraction that has extended for a second month. Japan is still in a small contraction. China's private sector PMI is recording factories there also slipping into a contraction. The EU is deep in a serious factory contraction now, more so than anywhere. Interestingly, the eurozone countries recording expansions are Greece and France. The one with the steepest contraction is Germany. The country with the most sudden change down is the UK. The trade retreat, now showing up in all this retreating manufacturing, is now risking an "investment chill" according to the governor of the Richmond Fed. Do you have forestry investment that is near harvesting? Or are you assessing what a stand is worth? Our log price data could be what you need. Check it out at interest.co.nz/rural/logs In Australia, we will get another RBA rate review at the end of today and markets expect another cut taking their OCR to 1.0%. But that will also likely means another sharp drop in rate offers for savers and that may generate a building storm of protest. Observers are saying term deposit rates there are on the way to just 0.5% pa. This happens because of heavy official pressure on banks to pass on the full rate cut to borrowers. Savers pay for that. And renewed Australian regulator pressure to force banks to verify a mortgage applicant's expenses in the name of 'responsible lending', even when the application comes via a broker, is threatening to force the whole process to grind to a crawl. The unintended consequence is that regulators are now forcing banks to use third party big data intrusion just to meet these obligations. What could possibly go wrong? There will almost certainly be a regulator-induced mortgage recession if they keep going down this path. The UST 10yr yield is now at 2.03%, up +2 bps from the same time yesterday. Gold has tumbled today, down -US$23 overnight to US$1,386/oz. US oil prices are lower again on demand fears. They are now just under US$58.50/bbl The Brent benchmark is down too at US$64/bbl. The Kiwi dollar is down slightly against the US dollar and now at 66.7 USc. On the cross rates we are firm at 95.8 AUc. Against the euro we are unchanged at 59.1 euro cents. That shifts the TWI-5 marginally lower to 71.5. You can find links to the articles mentioned today in our show notes. Get more news affecting the economy in New Zealand from interest.co.nz and subscribe to receive this podcast in your favourite podcast app - we're on Apple Podcasts, Google Podcasts, Spotify or subscribe on our website. Tell your friends and leave us a review - we welcome feedback from listeners.

Rhythm & News interview with Charlene Crowell with the Center for Responsible Lending about the rollback of regulations to the payday lending industry by the Trump Administration. Interview by Chris B. Bennett.

The Center for Responsible Lending was founded in the belief that all communities should have access to fair banking and lending services. And that the nation’s financial marketplace, from Wall Street to banks, should be reformed. It was rooted in the civil rights and economic justice movements and grew out of Self Help, a credit union launched in North Carolina in 1980. What started as a small operation and an experiment in lending to rural and other underserved communities, has become a $7 billion-dollar lender and a community development leader. Self Help proved the theory that a credit union with bonds of trust in a community can provide needed resources and be repaid. It proves, as Power Station guest Niktra Bailey, CRL Executive VP says, “Race does not equate to risk.” "Low income families shouldn’t have to pay more for financial services.” We discussed the state-based advocacy that CRL leads, its unimpeachable research and data and its field building among diverse organizations. We looked back at the promise of the Consumer Financial Protection Bureau and the hard-fought “win” of the small dollar loan rule, which over 700 nonprofit and faith-based organizations advocated for. They coalesced around the premise that pay day lenders must apply an ability to repay standard to their loan making, a provision that the current White House is now set to dismantle. Nikitra, a lawyer with an expertise in financial services and a leader committed to those who have been hurt by the debt trap is ready to advocate for the rule, and more, all over again. I learned so much for this conversation and I trust that you will too.  

How do you create a more just financial marketplace? We explore this question on Power Station with Diane Standaert, Executive Vice President of the Center for Responsible Lending (CRL), a nonprofit that builds financial wealth through the elimination of predatory lending practices. As Diane explains, it starts with a system rooted in a racially exclusionary and discriminatory history, exacerbated by the 2008 mortgage crisis, in which over one trillion dollars was lost in communities of color. This is the environment in which payday lenders operate and prosper by pulling poor people in need of small dollar loans into a debt trap. CRL conducts empirical research to demonstrate the scope of the problem to state and national level policymakers. It partners with community based nonprofits, the faith community and veteran's groups to advocate for solutions, from ballot initiatives to state-based legislation. And it advocates on a national level for the embattled Consumer Financial Protection Bureau, a champion of consumer rights. Diane remains a relentless and positive force for a fair financial marketplace. Check out the vital work led by CRL and Self-Help, it's influential and innovative lending partner.            

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. Join Alex Whitlock and Annie Kane as they delve into the latest themes and developments in the home loan market. In this episode, they discuss Westpac’s $35 million civil penalty for responsible lending breaches and the ongoing scrutiny that the sector is under. This week they unpack… -          The concept of responsible borrowing  -          How leadership changes could impact lending -          The changes that we have seen so far and what is still to come www.mortgagebusiness.com.au

This month listen in and "Listen up!" as Lisa Sharon Harper offers this extended convo on #BlackGirlMagic! Rev. Traci Blackmon, United Church of Church Executive Minister of Justice and Local Ministries; Rev. Leslie Copeland-Tune, Director of Ecumenical Advocacy Days; and Rev. Sekinah Hamlin, Director of Faith Affairs at the Center for Responsible Lending join the panel.

Epicentro March 14, 2009 Entre la crisis y el alivio inmobiliario Segmento 1 Al aire: José López Zamorano En estudio, Aracely Panameño de Responsible Lending, Monica Delta de Monicadelta.com y Marcelo Raimon de la agencia ANSA. Un análisis de la realidad inmobiliaria y de sus perspectivas hacia la comunidad hispana. 09:17 Break (2:00) Segmento 2 En estudio, Aracely Panameño de Responsible Lending, Maria Peña de la agencia EFE, Mónica Delta de Monicadelta.com y Marcelo Raimon de la agencia ANSA. El presupuesto Obama, la Crisis económica, el desempleo y la comunidad hispana. 19:07 Break (1:00) Segmento 3 En estudio, Aracely Panameño de Responsible Lending, María Peña de la agencia EFE, Mónica Delta de Monicadelta.com y Marcelo Raimon de la agencia ANSA. La perspectiva del gobierno Obama hacia México y Latino América a propósito del auge de la narcoviolencia y una perspectiva de la visita a Washington del presidente de Brasil Luiz Inacio Lula da Silva. End 29:00 For more information: Director. Luisa Fernanda Montero: luisa.fernanda@hcnmedia.com 202 5580010 Engineer: Julio González: julio.gonzalez@hcnmedia.com, 202-340-9131 Enginner: Daniel Olaya: daniel.olaya@hcnmedia.com, 202 3604136

Welcome and Opening Remarks Stuart Gabriel, UCLA John Quigley, UC Berkeley The Policy Maker's Perspective on the Financial Meltdown and the Economy Janet Yellen, Federal Reserve Bank of San Francisco Stuart Gabriel, UCLA, Moderator The Future of the Housing Finance System Nancy Wallace, UC Berkeley, Moderator Panelists: Brad Blackwell, Wells Fargo Bank John Krainer, Federal Reserve Bank of San Francisco Paul Leonard, Center for Responsible Lending Paul Jablansky, 400 Capital Management LLC

Welcome and Opening Remarks Stuart Gabriel, UCLA John Quigley, UC Berkeley The Policy Maker's Perspective on the Financial Meltdown and the Economy Janet Yellen, Federal Reserve Bank of San Francisco Stuart Gabriel, UCLA, Moderator The Future of the Housing Finance System Nancy Wallace, UC Berkeley, Moderator Panelists: Brad Blackwell, Wells Fargo Bank John Krainer, Federal Reserve Bank of San Francisco Paul Leonard, Center for Responsible Lending Paul Jablansky, 400 Capital Management LLC