find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
ASIC issues mortgage guidelines

ASIC issues mortgage guidelines

The Australian Securities and Investment Commission (ASIC) has released a set of guidance clauses for mortgage lenders, but they are still powerless to stop banks raising interest rates above…

The Australian Securities and Investment Commission (ASIC) has released a set of guidance clauses for mortgage lenders, but they are still powerless to stop banks raising interest rates above those set by the Reserve Bank.

Yesterday (10 November) ASIC released guidance for mortgage lenders that sets out how provisions in the National Credit Code and unfair contract terms law apply to mortgage early termination fees.

The code details the limited circumstances in which a lender may vary exit fees during the life of a mortgage, and the type of loss that should not be recovered through exit fees.

"The law limits these fees to the recovery of a lender's loss caused by the early termination," new ASIC chairman and ex-Mallesons managing partner Tony D'Aloisio said. "Lenders cannot use exit fees to discourage a borrower from switching their loan or to punish them for doing so."

Professor Ian Ramsay, the director of the Centre for Corporate Law and Securities Regulation at Melbourne University, told Lawyers Weekly that while ASIC's announcement include some welcome measures, such as the need for mortgage lenders to provide documentation on how they keep and calculate exit fees, there are still some "unknowns".

"What is unknown is whether some mortgage providers which have simply viewed exit fees as a profit centre, which is illegal, will seek to increase fees elsewhere," Ramsay said. "It will be interesting to see if and when ASIC takes enforcement action."

ASIC's announcement came on the same day the ANZ bank announced it would increase its standard variable rates by 39 basis points to 7.80 per cent, well above the RBA rise of 25 basis points.

ANZ also announced it would abolish its $700 mortgage exit fee.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

ASIC issues mortgage guidelines
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Scales of Justice, ALA, right-to-die law
Oct 24 2017
‘Right-to-die’ laws would be a relief for terminally ill: ALA
The passage of an assisted dying bill through the lower house of Victorian Parliament has been haile...
Diversity
Oct 24 2017
Diversity top of agenda for future WA Law Society president
The advancement of diversity in the Western Australian legal profession will be one of the key items...
Jetski
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...