National home loans regs 'will cut red tape'

Kevin Rudd is pushing for increased regulation of the home loans market to prevent the country running into the same kind of problems witnessed in the US.

In a recent article in the Australian, it was revealed that Mr Rudd changed the agenda of a Council of Australian Governments meeting held yesterday (Thursday 2nd).

Under the new plans, some areas of the home loans market will come under state control and will be watched closely by officials in an effort to make sure that home loans are sold appropriately.

Meanwhile, Phil Nayler, Mortgage and Finance Association of Australia chief, said that the regulation should extend to all types of lending, from cheap credit cards to consolidation loans.

“It’s a nightmare at the moment. There’s supposed to be a uniform national code but the rules change from state to state,” he claimed.

The announcement follows allegations from the Mortgage Finance Association of Australia claiming that some predatory lending practices have led to a rise in the number of home loan defaults.ADNFCR-1761-ID-18817359-ADNFCR