Gadens Lawyers worked with the Mortgage & Finance Association of Australia (MFAA) to lodge a detailed submission in response to an exposure draft of proposed amendments to the Uniform Consumer Credit Code.
While the amendments are stated to be targeted at fringe lenders, they have significant consequences for the mainstream mortgage market.
To view the proposals click here. To access the MFAA submission click here.
|
Proposal |
Submission |
|
Remove the conclusive presumption provided by a business purpose declaration |
Supported.
Many of our members and clients have adopted uniform procedures for code and non code loans. However, the spectre of a class action by regulators will be a significant impetus for "adverse steering" – ie trying to construe loans as unregulated. This will be a significant retrograde step. It would create a reason for mainstream lenders to start adverse steering in order to protect their position, being a practice which until now has been confined |
