Via our Chris today, whose royal commission objections are mounting towards jihad:
Labor fundamentally undermined the integrity of the financial system by partially shifting responsibility for repaying debts from the borrower to the lender, which is insane. Now lenders, not borrowers, are liable for understanding borrowers’ financial circumstances and verifying whether they can service a loan. And if lenders do not carefully document they have done so, borrowers can potentially get out of their obligations.
One would understand the need for such laws if lenders were giving borrowers personal financial advice (which they are categorically not), covering complex issues like building an equities portfolio. Yet decades of history spanning tens of millions of customers testifies to the fact that there are few activities more common or straightforward than taking out a loan to buy a home.
