Yesterday’s Federal Court decision to stomp on ASIC’s WBC settlement has all tongues wagging. Martin North sees as bullish:
The use of HEM may well be back in play, following the latest from the Westpac ASIC case. Given that at some banks HEM is still being used for around half of applications, and the Royal Commission commented specifically in the use of HEM, perhaps the law needs to be changed.
The core of the argument is whether the loans were unsuitable, and that it seems would depend of the ultimate progress of the loan subsequently. IN other words, it cannot be proved to be unsuitable until it falls over. APRA would need to prove the loan was unsuitable!