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Australian Home Finance Growth Slows to a Snail-pace

Posted: February 10th, 2013 | Author: | Filed under: Business News | Tags: , , , , , , | Comments Off on Australian Home Finance Growth Slows to a Snail-pace

MortgageAustralia’s Reserve Bank – RBA – figures indicate that Australians are taking out home loans at the slowest annual pace ever recorded, suggesting that the property downturn may be far from over.

Figures from the RBA show total lending to the private sector grew 0.4 per cent in December, with the amount Australians borrowed rising by only 3.6 per cent in 2012. It’s not all doom – though mostly – the RBA data shows housing credit remains the most consistently robust category of borrowing, with a 4.5 per cent rise over the 12 months.

But, that annual housing credit growth rate is the slowest in RBA recorded history, admitedly the figures only go back to 1977.

Home lending growth of 0.3 per cent in December is also one of slowest monthly increases recorded :: Read the full article »»»»


European Study Pours Cold Water on Australian Banks Cost Claims

Posted: February 21st, 2012 | Author: | Filed under: Business News | Tags: , , , , , , , , , | Comments Off on European Study Pours Cold Water on Australian Banks Cost Claims

European Study Pours Cold Water on Australian Banks Cost ClaimsElysse Morgan from ABC reports that new research by one of Europe’s biggest banks suggests that Australian banks are hiking interest rates to protect profit margins, not to cover higher funding costs as they have insisted. But the Australian Bankers’ Association has dismissed the study and says lenders may have to raise their rates again.

The study by Societe Generale shows nearly all funding costs for Australian lenders have fallen in the last six months. Societe Generale’s head of strategy in Asia, Christian Carrillo, says the banks’ claims about rising costs are dubious.

“Research suggests that effectively pretty much every source of funding that they use in terms of domestic deposits, short-term funding onshore, long-term funding onshore, has actually gone down,” Mr Carrillo said. ”There has been some widening in spreads between offshore funding rates and the rates that they use to hedge against, but if you take into account the overall rate they pay to fund overseas, even that has actually come down slightly.” Read the full article »»»»


US Mortgage Executives Sued

Posted: December 17th, 2011 | Author: | Filed under: Business News | Tags: , , , , , , | 1 Comment »

Fannie MaesUS securities regulators have sued six former executives at Fannie Mae and Freddie Mac, including ex-CEOs of both mortgage finance companies, saying they misled investors over exposure to risky home loans.

The Securities and Exchange Commission sued three former executives at Fannie Mae and three at Freddie Mac. The civil charges were brought in two separate lawsuits filed in the US District Court in Manhattan.

The SEC accused former Fannie Mae CEO Daniel Mudd, former Freddie Mac CEO Richard Syron and four other defendants of knowingly approving false statements to investors that drastically misrepresented the extent of the firms’ exposure to toxic mortgages.

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