Impact of Comprehensive Credit Reporting - July 2019

Discussion in 'Loans & Mortgage Brokers' started by mehrar_84, 28th Mar, 2019.

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  1. mehrar_84

    mehrar_84 Well-Known Member

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    Hi All,

    Hope you are doing well.

    Just wondering if i can get your views on how lending may be further impacted after the implementation of Comprehensive Credit Reporting (CCR) in Jul 2019.

    CCR for credit cards was implemented in Jul 2018 and we saw a sharp drop borrowing capacity. CCR for home loans, personal loans etc. will be implemented in Jul 2019.

    Anyone thinks there is will another similar drop in prices similar to last year?

    Cheers
     
    mehrar_84, 28th Mar, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No more lies!
     
    Terry_w, 28th Mar, 2019
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    it wont do that much at this stage

    Objectively, most borrowers are on the straight and narrow.

    ta
    rolf
     
    Rolf Latham, 28th Mar, 2019
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I my view, the lowering of borrow cap had more to with ..........

    ASIC pushing for less use of HEMS vs actual expenses for household outgoings, and a hangover from APG 223 where the treatment of existing lending was "standardised"

    ta
    rolf
     
    Rolf Latham, 28th Mar, 2019
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  5. Bill Williamson

    Bill Williamson Well-Known Member

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    Yes but not because of CCR.
     
    Bill Williamson, 29th Mar, 2019
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  6. mehrar_84

    mehrar_84 Well-Known Member

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    what are other factors?
    i understand speculation is mostly out of market. majority of transactions is first home owners or people up sizing or downsizing.
     
    mehrar_84, 29th Mar, 2019
    #6
  7. Bill Williamson

    Bill Williamson Well-Known Member

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    A backlog of IO -> P&I conversions. Many people just can't afford their loans that were written in the good old days.
     
    Bill Williamson, 29th Mar, 2019
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  8. JohnPropChat

    JohnPropChat Well-Known Member

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    I for one am worried for my financial privacy. Just look at the equifax data breach in the US - nightmare.
     
    JohnPropChat, 29th Mar, 2019
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  9. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    I'm having a few clients getting pinged for non disclosure of credit cards some who have been omitting some of their cards from applications for years it turns out!! I'm sure this will be fairly common. When the credit files start showing balances etc it could get more negative again for credit growth. The late payment issue isn't too bad as it has to be quite late to be reported.

    Another nail in the coffin of easy credit though.
     
    Marty McDonald, 29th Mar, 2019
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  10. mehrar_84

    mehrar_84 Well-Known Member

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    not just credit cards. It was happening on home loans as well - omitting they have another loan/loans with other fin institutions.
    given decline in house prices and negative growth forecast wonder how many people will be able to take up more loans or willing to invest.
     
    mehrar_84, 1st Apr, 2019
    #10
    Bill Williamson likes this.
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