Via Banking Day:
The volume gains made by non-ADI lenders in the investment mortgage market could come under severe pressure in the next few months as APRA begins to loosen the prudential constraints on lending to investment borrowers.
Banking Day can confirm that HSBC Australia, Macquarie and People’s Choice Credit Union are among the first ADIs to secure relief from the cap on investment lending introduced by the regulator four years ago.
In April, APRA signalled its intention to remove the restriction on a case-by-case basis, with licensed ADIs required to demonstrate that their serviceability tests and assessment criteria met new standards set incrementally by the regulator over the last three years.
Since 2014 APRA has required all ADIs to keep monthly growth in investment lending below ten per cent.
Banking Day understands that none of the four major banks have sought relief from the cap amid concerns that their lending practices were not likely to meet responsible lending requirements.
How convenient for Macquarie which launched through the cap screaming with laughter in June:
That must be in part some acquisition or shifting of loan designations. Of course it was all done without any relaxation of lending standards.
In a sane system that would warrant some kind of regulatory sanction not a removal of the rules!
