Non-conforming loans are increasing among borrowers, particularly in regional areas... RBA sees boost to economy as prospects in mining states improve...
Non-conforming loans rise in popularity
Non-conforming home loans in the securitisation market have increased five times this year according to an article in The Australian.
Non-banks are selling more mortgage-backed bonds relative to the big four lenders and Reserve Bank head of domestic markets, Chris Aylmer said that new data revealed residential mortgage-backed securities (RMBS) from non-banks were popular among home owners in more regional areas, especially as more Australians are falling behind on their home loan repayments in the regions.
“Non-conforming RMBS have also become larger, with some recent issues being between $700 million and $800m — larger than any other non-conforming deal since 2007,” he told the Australian Securitisation Conference in Sydney yesterday.
RBA sees boost to economy as prospects in mining states improve
(Bloomberg) -- Australia’s economy may get a boost from mining states as the drag from falling resource investment eases and higher commodity prices bring windfall cash.
Nominal demand in Western Australia and Queensland is set to improve, providing support to the national economy, Reserve Bank Assistant Governor Christopher Kent said in a speech in Sydney on Tuesday.
“That would contribute to a rise in domestic inflationary pressures and a gradual return of inflation to more normal levels,” Kent said in the address to economists. “If our forecasts are right, the terms of trade will shift from the substantial headwind of recent years to a slight tail breeze providing some support to the growth of nominal demand.”
Kent provided a state-by-state breakdown of the economy’s performance during the post-mining boom reversal of the two-speed economy to the nation’s southeast. Victoria state, rebounding along with New South Wales on low interest rates and a weaker Aussie dollar, is benefiting from population inflows as property prices in its capital are cheaper and commuting times shorter than in Sydney.
The mining capital of Perth, in contrast, is seeing falling house prices as increased supply came on line just as population flows eased.
Non-conforming home loans in the securitisation market have increased five times this year according to an article in The Australian.
Non-banks are selling more mortgage-backed bonds relative to the big four lenders and Reserve Bank head of domestic markets, Chris Aylmer said that new data revealed residential mortgage-backed securities (RMBS) from non-banks were popular among home owners in more regional areas, especially as more Australians are falling behind on their home loan repayments in the regions.
“Non-conforming RMBS have also become larger, with some recent issues being between $700 million and $800m — larger than any other non-conforming deal since 2007,” he told the Australian Securitisation Conference in Sydney yesterday.
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RBA sees boost to economy as prospects in mining states improve
(Bloomberg) -- Australia’s economy may get a boost from mining states as the drag from falling resource investment eases and higher commodity prices bring windfall cash.
Nominal demand in Western Australia and Queensland is set to improve, providing support to the national economy, Reserve Bank Assistant Governor Christopher Kent said in a speech in Sydney on Tuesday.
“That would contribute to a rise in domestic inflationary pressures and a gradual return of inflation to more normal levels,” Kent said in the address to economists. “If our forecasts are right, the terms of trade will shift from the substantial headwind of recent years to a slight tail breeze providing some support to the growth of nominal demand.”
Kent provided a state-by-state breakdown of the economy’s performance during the post-mining boom reversal of the two-speed economy to the nation’s southeast. Victoria state, rebounding along with New South Wales on low interest rates and a weaker Aussie dollar, is benefiting from population inflows as property prices in its capital are cheaper and commuting times shorter than in Sydney.
The mining capital of Perth, in contrast, is seeing falling house prices as increased supply came on line just as population flows eased.
