Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

MGIC confident about Australian lending but warns of further US pain

Staff Reporter 3 minute read

Mortgage insurer MGIC today warned that a battered US lending industry faced further pain when a credit crisis peaks next year.

Speaking with Mortgage Business MGIC Investment Corporation chairman and chief executive officer Curt Culver predicted that the US mortgage industry is in for a rough ride when borrowers are hit hard as teaser rates end over the coming year.

“All the problems suffered by US lenders so far have been down to liquidity; the impact of credit is yet to come,” said Culver.

Speaking about the domestic market however Culver is confident that the Australian lending industry will remain healthy.

Advertisement
Advertisement

“There have been some adjustments to risk in the Australian market in response to events overseas, but this is a fundamentally different lending environment,” he said.

“While the Australian lending industry has suffered because of global liquidity issues, this is a variable-rate lending environment. Combined with a robust housing market lenders should be able to weather the storm,” said Culver.

 

MGIC confident about Australian lending but warns of further US pain
default
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

PROMOTED CONTENT


default

 

more from the adviser
David Hyman

Breaking News

Brokers promote competition in lending: Lendi

Brokers are driving competition in the mortgages sector and chang...

money au ta

Breaking News

SME fintech closes $25m raise to fund expansion

An SME lender has raised $25 million in equity to fund the ‘rap...

loan application

Breaking News

Hot Property: The biggest property headlines from the week 26 to 30 July

The weekly round-up of the biggest news stories from across Momen...