Today ASIC has published expectations of lenders to assist them to deliver appropriate and fair outcomes to consumers whose six-month loan repayment deferrals will expire in the coming months. These add to ASIC’s earlier expectations published on 29 April 2020.
Importantly, ASIC’s expectations include how lenders should approach consumers who cannot resume repayments on their mortgages. If a consumer identifies that they cannot resume full repayments on their mortgage, ASIC expects lenders to make reasonable efforts to gather personalised information about the consumer’s circumstances. We consider that taking such steps will allow lenders to make a decision about the consumer’s loan in a fair and appropriate manner, including better enabling lenders to offer assistance that genuinely meets the needs of each consumer.
ASIC is also working closely with APRA to ensure that our expectations of Authorised Deposit-taking Institutions (ADIs) and how they are handling loans impacted by COVID-19 are aligned. APRA has issued a consultation letter regarding ADI capital measures and reporting requirements for loans impacted by COVID-19, and an update to its FAQs.
ASIC continues to encourage all lenders to work closely with consumers affected by COVID-19 to develop solutions that not only provide relief but are sustainable and assist consumers over the longer-term.