Goldman ordered to pay $80-million in mortgage case… House financing surpasses February expectations... Fixed-rate demand skyrockets due to rate cut...
National Australia Bank win mortgage case against Goldman Sachs
According to an article in the Wall Street Journal, arbitrators ordered Goldman Sachs Inc. to pay $80 million, plus interest, to National Australia Bank Ltd. for violating industry practices related to the sale of mortgage-linked securities before the financial crisis.
An arbitration panel from the Financial Industry Regulatory Authority announced its decision Friday, bringing to resolution a $230 million arbitration claim filed by NAB in December 2012, according to the article.
NAB had argued for $230 million in total damages, including $80 million in compensatory damages, interest of $60 million and punitive damages. The claim arose out of a mortgage-related deal which carried “a significant conflict of interest” between Goldman Sachs and its clients, according to the Finra panel.
“We are happy with the result because the $100 million award compensates NAB for its losses with interest and also sends the clear message that it is not okay to conceal conflicts of interest from clients,” said Jonathan Pickhardt, the lead attorney on the case at Quinn Emanuel, in a statement.
House financing surpasses February expectations
New data from the Australian Bureau of Statistics shows the number of home loans issued in February beat economist forecasts, as record-low interest rates encouraged consumers to sign up to mortgages, according to an article in the Herald Sun.
According to the ABS, the number of home loans granted in February rose 1.2 per cent in seasonally adjusted terms to 53,614. Most economists has been predicting the number of housing finance commitments to rise by one per cent in the month.
The result comes after a 3.5 per cent fall in the number of home loans granted in January. Total housing finance by value fell 1 per cent in February, seasonally adjusted, to $30.4bn, while the value of investor lending slipped 3.4 per cent to $12.05bn, according to the article.
Fixed-rate demand skyrockets due to rate cut
According to an article from the Property Observer, demand for fixed rate home loans has surged, with borrowers keen to take advantage of last week's record low rate cut.
The article cited Mozo’s data comparison site, which saw a 350 per cent lift in visits to its fixed rate loan pages last week compared to the month prior. While most lenders have passed on the full 0.25 per cent cut, taking variable rates to as low as 3.98 per cent, fixed rates are even lower.
Mozo data shows in May 2013, the best three-year fixed rate was 0.24 per cent higher than the best variable, today a popular three year fixed loan can be found for just 3.95 per cent.
“With fixed rate loans closing the gap on variable rates, the appeal of locking-in your loan for 3 years or more has grown considerably since Tuesday.”
“With interest rates likely to stay on hold in the coming months, now could really be the time to fix and reap the savings,” said Mozo director, Kirsty Lamont.
