MPA Online has rounded up the top stories and market talk from over the Christmas break
MPA Online has rounded up the top stories and market talk from over the Christmas break
1. John Flavell appointed new Mortgage Choice CEO, Jon Sutton to land permanent role at Bank of Queensland
Former NAB-broker head John Flavell is making a return to the mortgage industry, it was announced the day before Christmas Eve. He will be replacing Michael Russell, although the two will work together to manage the transition between April, when Flavell arrives, and July. (Read more)
Meanwhile Jon Sutton, previously acting chief executive at Bank of Queensland, has now been appointed the non-major’s permanent managing director and CEO. Chairman Roger Davis commented that Sutton was best placed to continue the bank’s ongoing transformation program. (Read more)
2. Melbourne fraud allegations
What started with the arrest of two Melbourne brokers - Najam Shah and Aizaz Hassan of Footscray Company Myra Home Loan Pty Ltd – has turned into a full-on row between ASIC and its critics. ASIC took action against the two for false loan documentation submitted between 2008 and 2011, and has been criticised for its delay in taking action.
Indeed The Australian has reported that Hassan was still operating as a licensed broker until last week, when media coverage of the affair began. The Australian quoted Labour Senator Sam Dastyari attacking ASIC for failing to use its existing powers: “for those of us who have increasingly lost faith in ASIC’s ability to be the tough cop on the beat, situations like this reinforce the view, as Greg Medcraft said, that Australia is becoming a paradise for white collar criminals. There is this constant failure to act.”
In reply, ASIC argued it was legally bound to confidentiality when investigating cases, and tipping-off employers or business partners could lead to suspects becoming aware of their impending arrest. (Read more)
3. New year market speculation
The profusion of predictions for 2015’s mortgage market could fill up a newsletter by themselves, but here are the main points:
RP Data director Tim Lawless expects the market’s dynamic to “shift geographically”, as affordability constraints and tougher investment lending regulations slow growth in Melbourne and Sydney, whilst Brisbane will keep on growing. WA and other mining-dominated regions are set for further falls however.
Comparison site finder.com.au reported that five more of their panel of economics experts are now forecasting a further cut in interest rates by the RBA. However CBA economist Michael Blythe predicts rates will remain stable across 2015, with this year’s originally predicted rate rises being pushed back to 2015.
Finally, market researcher IBISWorld has claimed vehicle finance is set to grow significantly in the year ahead on the back of low interest rates. IBISWorld industry analyst Andrei Ivanov said Australians have become more comfortable with the idea of financing vehicles, particular those who have already obtained home finance.
1. John Flavell appointed new Mortgage Choice CEO, Jon Sutton to land permanent role at Bank of Queensland
Former NAB-broker head John Flavell is making a return to the mortgage industry, it was announced the day before Christmas Eve. He will be replacing Michael Russell, although the two will work together to manage the transition between April, when Flavell arrives, and July. (Read more)
Meanwhile Jon Sutton, previously acting chief executive at Bank of Queensland, has now been appointed the non-major’s permanent managing director and CEO. Chairman Roger Davis commented that Sutton was best placed to continue the bank’s ongoing transformation program. (Read more)
2. Melbourne fraud allegations
What started with the arrest of two Melbourne brokers - Najam Shah and Aizaz Hassan of Footscray Company Myra Home Loan Pty Ltd – has turned into a full-on row between ASIC and its critics. ASIC took action against the two for false loan documentation submitted between 2008 and 2011, and has been criticised for its delay in taking action.
Indeed The Australian has reported that Hassan was still operating as a licensed broker until last week, when media coverage of the affair began. The Australian quoted Labour Senator Sam Dastyari attacking ASIC for failing to use its existing powers: “for those of us who have increasingly lost faith in ASIC’s ability to be the tough cop on the beat, situations like this reinforce the view, as Greg Medcraft said, that Australia is becoming a paradise for white collar criminals. There is this constant failure to act.”
In reply, ASIC argued it was legally bound to confidentiality when investigating cases, and tipping-off employers or business partners could lead to suspects becoming aware of their impending arrest. (Read more)
3. New year market speculation
The profusion of predictions for 2015’s mortgage market could fill up a newsletter by themselves, but here are the main points:
RP Data director Tim Lawless expects the market’s dynamic to “shift geographically”, as affordability constraints and tougher investment lending regulations slow growth in Melbourne and Sydney, whilst Brisbane will keep on growing. WA and other mining-dominated regions are set for further falls however.
Comparison site finder.com.au reported that five more of their panel of economics experts are now forecasting a further cut in interest rates by the RBA. However CBA economist Michael Blythe predicts rates will remain stable across 2015, with this year’s originally predicted rate rises being pushed back to 2015.
Finally, market researcher IBISWorld has claimed vehicle finance is set to grow significantly in the year ahead on the back of low interest rates. IBISWorld industry analyst Andrei Ivanov said Australians have become more comfortable with the idea of financing vehicles, particular those who have already obtained home finance.
