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.

Mutual lender halts investor lending

stopsign stopsign
Francesca Krakue 4 minute read

Credit Union Australia has announced it will temporarily pause accepting applications for investor lending until further notice.

As of yesterday (5 April), CUA said it will stop accepting investor lending applications until further notice, including applicants refinancing from other financial institutions.

The changes apply to all applications for new investor loans, and also impacts applicants who have lodged investor applications that do not yet have pre-approval, conditional approval or full approval.

Chief operating officer of member services Andy Rigg explained that the lender had seen a sharp increase in investor lending volumes in recent weeks.

Advertisement
Advertisement

“We have been closely monitoring our year-on-year investor lending balance growth to ensure that we continue to lend prudently while remaining within the 10 per cent regulatory growth benchmark,” he said.

“We have observed an increase in new investor applications, particularly in response to some of the actions taken by other lenders to slow their investor growth. 

“In response to the continued growth in our investor lending and forward projections of this growth, we’ve taken the decision that we need to temporarily pause new investor lending.”

CUA’s decision comes after ASIC recently announced targeted industry surveillance to examine whether lenders and mortgage brokers are “inappropriately recommending more expensive interest-only loans” and APRA’s crackdown on investor lending late last month.

[Related: ]

PROMOTED CONTENT


Mutual lender halts investor lending
stopsign
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.

stopsign

 

more from the adviser
Susan mitchell MC Mortgage Choice-Smartline leadership changes announced

The REA Group has confirmed changes to the Mortgage Choice-Sm...

woman broker documents ta Governments extend COVID support to NSW, Vic

The state and federal governments have offered support packages t...

Suncorp new broker portal ta Suncorp launches new broker portal

The non-major bank has released a new broker platform as it conti...