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MFAA Prosper : Mortgage and Finance Brief 07
6 | Mortgage & Finance brief CEO's Message MFAA takes centre stage Legislative representation and lobbying has been the focus of MFAA's attention over the past few months. We've certainly been at the centre of the action in regard to the finalisation of disclosure requirements under NCCP, the Senate Committee Inquiry into competition within the banking industry and the banking reforms announced by the Treasurer in December. As members will be aware, MFAA was successful in lobbying Treasury to postpone the operative date of disclosure documents (e.g. credit guide, credit quote and proposal) from 1 January to 1 April, and we are working with Treasury to have the final form of those documents finalised well before 1 April. We lodged a submission to the Senate Inquiry and made an appearance in December urging the Government to consider the Canadian model to provide better access to funding for non-bank lenders. The Senate Committee will announce its recommendations in March. However, just before the Senate Committee started its hearings in December, the Treasurer released the Government's proposed reforms to promote competition in the banking sector. Regrettably, access to ongoing securitised funding via something like the Canadian model was not among the reforms, but we still await the Senate Committee's report on this. While many of the proposed reforms are worthwhile, we have made it clear to the Senate Committee hearings, and in meetings with Treasury, that the Government has got it wrong in seeking to ban deferred establishment fees. As we told the Senate Inquiry: "(This) will have the reverse effect by causing non-bank lenders to lose their most effective weapon in competing with banks: the Deferred Establishment Fee. "This seems to be a massive overreaction, considering ASIC has only recently announced guidelinesfor exit fees and Deferred Establishment Fees and the method by which they will be adjudged to be unfair or unconscionable. "Two of the big banks have already dropped exit fees, so the organisations that are going to be mostly hurt by this banning are the non-bank lenders who are doing the most ofall lenders to assist borrowers." We are continuing to voice our opposition to the banning of deferred establishment fees, both to Government directly and in the media. On the other hand, as the result of our involvement with Treasury, an MFAA representative is now sitting on a Treasury Working Party to discuss the future of securitisation and other alternative funding sources for non-bank and smaller lenders, and we have been invited to participate in a committee to plan a Government-sponsored consumer awareness program to alert consumers of the value of shopping around and considering all types and sizes of lenders in the marketplace. Phil Naylor Chief Executive of MFAA MORTGAGE & FINANCE BRIEF is the official magazine for members of the Mortgage & Finance Association of Australia. Chief Executive Officer : Phil Naylor Executive Director Marketing & Membership: Kriti Colless Marketing & Communications Manager : Marisa Ashworth Post: PO Box 604 Neutral Bay NSW 2089 T: (02) 8905 1300 F: (02) 9967 2896 E: firstname.lastname@example.org W: www.mfaa.com.au Published by: MAHLAB MEDIA Managing Director : Bobbi Mahlab Editor : Martin Wanless Advertising Sales Manager: Craig Ennis Art Director: Simon Wan G9/1-15 Barr Street Balmain NSW 2041 T: (02) 9818 8896 F: (02) 9818 6080 E: email@example.com W: www.mahlabmedia.com.au Printed by: Webstar Mailed by: Bluestar DM Cover photography: Shannon Morris All material copyright MFAA. All rights reserved. MFAA does not expect or invite any person to act or rely on any statement, opinion or advice contained in this publication and readers must rely on their own enquiries in making any decisions or giving any advice. Neither MFAA nor any employee or agent of MFAA nor any contributor to this publication will be liable for any loss or damage caused by any inaccurate statement, opinion, advice or information contained in this publication. CAB Member
Mortgage and Finance Brief 06
Mortgage and Finance Brief 08