Chief executive officer of the Finance Brokers Association of Australia (FBAA) Peter White has welcomed moves by APRA chairman Wayne Byres to “encourage banks to reinforce sound lending standards”.
The chairman was commenting on recent stress tests conducted on the largest Australian lenders against a significant fall in house prices, to ensure they are “able to continue to support their customers through difficult times.”
Mr White said the comments were positive, as was any move to protect borrowers during hardship.
“It is during times of hardship that borrowers need the support of lenders who are willing and able to cooperate, so that they can get back on track,” he said.
“A lender without this capability will detrimentally affect its own portfolio, the lives of borrowers and the industry at large.
“Therefore we see these comments as helpful and necessary.”
Mr White said brokers also have a unique role that allows them to stand beside their clients for life, in the good and bad times.