In Q3 2007, the Economics Committee of the House of Representatives conducted an inquiry into home loan lending practices and processes in Australia to ascertain to what extent borrowers in financial difficulty are being treated appropriately by lenders.

The submissions and the subsequent industry roundtable demonstrated that Australian credit standards are strong and that Australia has a sophisticated industry with the experience to open up the home lending sector to a broader consumer group, and successfully understand and manage risk.

The Australian industry and the accompanying statistics demonstrate that, as world-wide sentiment changes towards mortgage backed securities, global investors will look favourably on Australia’s credit performance.

In Deloitte’s opinion a key finding from the home loan lending inquiry was that credit standards in Australia have not resulted in widespread irresponsible lending.

The publication aims to provide an overview and comment on the submissions to the Economics Committee of the House of Representatives
Inquiry into Home Loan Lending Practices and Processes in Australia and offer a balanced view of the Australian market, the issues it faces, the US sub prime market liquidity crisis, and its effect on the Australian industry.

Key contact: Graham Mott, Partner, National Securitisation Practice Leader, Deloitte