Critics wary about plan for more disclosure on home loans
Critics target the regulatory burden for banks imposed by the Home Loan and Mortgage Disclosure Amendment Bill
The Home Loan and Mortgage Disclosure Amendment Bill will create regulatory burdens for banks and undermine the intention of the draft law, critics say. The bill seeks to stem discrimination in home loans. One of its pillars is that banks will be required to provide information on the volume of home-loan applications they receive, the applications they approve or decline as well as reasons why loans are declined. Department of Human Settlements spokesman Ndivhuwo Mabaya said the information would assist in developing policies to enhance affordability and access. Without this information, the department would be unable to help banks develop the relevant products for the emerging segment of the market, he said. Banking Association of SA’s regulatory head Pierre Sunter said the association supported the drive to give more South Africans access to the home-loan market within the parameters of responsible lending. But there was no justification for housing financiers to have to "duplicat...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.