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BFCSA: ME Bank joins anti-Chinese lending stampede

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ME Bank joins anti-Chinese lending stampede

 

By Houses and Holes in Australian banks, Australian Property, Featured Article

at 10:57 am on June 3, 2016 | 16 comments

http://www.macrobusiness.com.au/2016/06/me-bank-joins-anti-chinese-lending-stampede/

 

From Domainfax:

 

ME Bank, which is owned by superannuation funds and trade unions, is the latest lender to ban foreign borrowers from taking out mortgages, adding to growing fears about the scale of possible fraud and money laundering under investigation by the nation’s top five banks.

 

It is the second lender heavily dependent on securitisation and foreign investors to have cut back on mortgage lending in the past week.

 

The bank, which recently announced a grab for market by increasing mortgage lending, has confidentially told brokers that it has banned any proposed borrower  who is  not permanently residing, or employed, in Australia or New Zealand.

 

“The primary driver is the ability to verify foreign income,” a bank spokesman said.

“For a bank our size, it is difficult for us to put in processes at suitable costs to manage the segment.”

 

So how come Bank of Melbourne can do it?

 

 


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