Mr Hayne: Bank Arguments and Situation Verification

mr hayne: Analysts expect the availability of credit will tighten even further after banking royal commissioner Kenneth Hayne QC called out the banks for failing to fully assess a borrower's financial situation, according to Nine News Australia. Verification calls for more than taking the consumer at his or her word, Mr Hayne said in his interim report, dismissing bank arguments that verifying a consumer's outgoings is too hard. To improve your experience update it here News National Banks inquiry to affect borrowing capacity4 26pm Oct 1, will not be able to borrow as much money once banks move to fully verify their expenses, with some analysts tipping it will reduce maximum borrowing capacity by about 30 per cent. UBS banking analysts said Mr Hayne's statements show banks' attempts to validate borrower expenses by increasing the number of expense categories they collect during a loan application still does not constitute verification. UBS estimated current improvements and tightening of underwriting standards by the banks have already reduced maximum borrowing capacity for owner-occupiers by 7-10 per cent and by about 20 per cent for investors. We estimate that a move to full expense verification is likely to reduce maximum borrowing capacity by approximately 30 per cent, they said in a research note. (news.financializer.com). As reported in the news.