NAB puts 40 postcodes on credit watchlist

Taking a stab at it, I'd say banks can see:

Defaults, delinquencies and late payments

Income flows for entire suburbs ($1 million in wages dropping to $900K next month might trigger something (I'm sure entire suburb wages are higher than this))

Applications for consolidation loans

Increase in credit card debt (first thing to happen after job loss, wage reduction)

Weaker credit applications per suburb

-- This is just off the top of my head. I imagine they have a lot of things they can pull out of the statistics. Although Westpac's inability to change rates for investor loans suggests they're running 1970s software back there and I'm assuming the banks look at this information. I imagine in some cases it's "if we don't know about it, we're legally covered".

 

@C-mac is it because the notorius dodgy OTP that he built in John St. Lidcombe ?

 

@datto YOu've got vested interest there mate ;-)

Riverstone somehow got into the list, I guess it's because of the large volume of new OTP property being purchased by mostly investors.

 

Across the country, mortgage arrears are at below usual levels, due in large part to a low cash rate of 2 per cent and no recent rate rise surprises.