SYDNEY, AUSTRALIA - The Australian Prudential Lending Authority, the agency that regulates Australian banks and certain insurance firms, has warned Australian credit unions against lending practices which it said could put depositors' funds at risk. The authority complained that the credit unions had been financing up to 100% of some mortgage loans and not requiring additional down payments from borrowers who were using an Australian government program to help finance their purchase. According to Australian media reports, the credit unions have responded by noting that the authority had called the practice isolated and that most credit unions could stand by their lending policies.
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From the October-02, 2002 issue of Credit Union Times Magazine • Subscribe!
Australian credit unions warned on loan practices
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