FBAA slams LMI insurers for non-disclosure by Calida Smylie | 15 Apr 2014 AUSTRALIAN BROKER NEWS
The Finance Brokers Association of Australia believes there is a need for greater transparency and disclosure on behalf of lenders and Lenders Mortgage Insurance insurers to make sure consumers are not being ripped off by having to pay LMI.
The Reserve Bank of Australia estimates more than one quarter of housing loans in Australia are subject to LMI.
In the financial year ending 30 June 2013, banks made an estimated 761,880 home loans, totalling $247.9 billion in lending, which indicates around 190,470 loans created in that financial year were subject to LMI.
But FBAA said in its submission to the financial services inquiry that there are many issues surrounding LMI, including consumers not being provided with LMI product disclosure statements, including any details regarding any commissions payable to the lender.
“Privity of contract is the...
Tagged in:
ASIC Bias towards Banks
ASIC failure to Protect Consumers
FBAA
Lenders rort Insurance game
Loan Mortgage Insurance Scams
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Some LMI Insurers used to send the borrowers a copy of the policy, as a matter of course. Now borrowers have to use some heavy ha -
BFCSA is looking after 1262 consumers of mortgage products. Everything the FBAA is saying is true, and we have material suggestin