STOPPING DISCRIMINATORY LENDING
Poor closer to securing home loans as property bill out for comment
The bill will enable the Office of Disclosure to investigate public complaints against financial institutions denying home loans
Human Settlements Minister Lindiwe Sisulu moved her department closer to giving lower-income homeseekers access to finance when she published the Home Loan and Mortgage Disclosure Amendment Bill for public comment. The bill aims to empower the Office of Disclosure which operates under the management of the director-general for human settlements. It will enable the office to investigate public complaints against financial institutions denying home loans. The bill will replace current laws put in place to stop banks from unfairly rejecting home loan applications. The bill seeks to amend the Home Loan and Mortgage Disclosures Act of 2000. The amendments have their beginnings in a memorandum of understanding signed between Sisulu and the banking sector, agreeing to open access to the home loan market to lower income brackets. "A financial institution must, in respect of home loans and in the prescribed manner and form disclose … loan amount, rand value and number of all home loan applic...