Bank Of Queensland

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<div>The Bank of Queensland (BoQ) has been ordered to improve its home lending practices after the Australian Securities and Investments Commission (ASIC) found they were not consistent with the National Credit Act.</div>
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<div>ASIC was concerned that BoQ was using a benchmark figure, the Henderson Poverty Index (HPI), to estimate the living expenses of consumers applying for home loans, instead of asking them about their actual expenses, when assessing loan suitability. "In ASIC's view, the lack of enquiry about actual expenses, and sole reliance on HPI, was not consistent with responsible lending obligations imposed by the National Credit Act," the regulator said. "Bank of Queensland has updated its home loan application forms to obtain more information about a customer's living expenses."</div>
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<div>From this year, the bank has also been using the higher of the customer’s supplied figure or that new benchmark, BoQ’s chief risk officer Peter Deans wrote on the bank’s website.</div>
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“We have also been examining customer’s declared expenses more closely to determine the loan repayments they can afford,” he wrote.
ASIC acknowledged the co-operation of Bank of Queensland in resolving this issue.
ASIC notes that the bank will continue to review the circumstances of borrowers who go into hardship or default to ensure that they have not been disadvantaged by a loan provided prior to the change in policy.
ASIC Deputy Chairman Peter Kell said the outcome was part of ASIC’s ongoing focus on the lending industry’s compliance with responsible lending laws. 
"Lenders must carry out inquiries to determine whether a credit contract will be unsuitable for a consumer," Peter Kell said.
In November 2014, ASIC updated Regulatory Guide 209 Credit licensing: Responsible lending conduct (RG 209) to clarify that credit licensees cannot rely solely on benchmark living expense figures, and must also make inquiries about the borrowers’ actual living expenses.
 
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jchancellor-FAypfDUnLy

BoQ told to tighten home lending practices

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Former bank chief Stuart Grimshaw and his wife Anneliese have put their Mosman home up for sale.
It follows their move to Austin, Texas.
Grimshaw was the Bank of Queensland chief executive until 2014 when he resigned to take up a job as executive chairman at the pawnbroking US EZCORP group.
<a href="https://www.realestate.com.au/property-house-nsw-mosman-124057046" target="_blank">The 1920s-era home</a> has views from Clontarf to North Head.
It was redesigned by French architect Guy de Compiegne when owned by San Francisco-based technology network boss Pascal Brochier and his interior architect wife Sue-Anne, who sold to the Grimshaws in 2011 for $4.85 million.
The four-bedroom home now has DA-approved plans for a BKH-redesign.
Dino Gatti, of Province expects more than $7 million at the December 3 auction.
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firstname1-iYD4UYzvBa

Former Bank of Queensland chief executive Stuart Grimshaw lists Mosman home

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The Bank of Queensland is among five lenders to have increased their mortgage rates.
BoQ, one of the nation's major regional banks, is increasing variable home loan rates for interest-only owner occupiers and investors by up to 15 basis points.
"Funding costs have significantly risen since February and have primarily been drive by an increase in 30 and 90 day BBSW rates, along with competition for term deposits," said Anthony Rose, Bank of Queensland's acting group executive.
"While the bank has absorbed these costs for some time, the changes announced will help to offset the impact of increased funding costs," Rose said.
The interest rate changes are effective July 2.
BOQ today announced variable home loan rate for owner occupiers (principal and interest repayments) will increase by 0.09 per cent, per annum;
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Variable home loan rate for owner occupiers (interest only repayments) will increase by 0.15 per cent, per annum;
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Variable home loan rate for investors (principal and interest and interest only repayments) will increase by 0.15 per cent, per annum; and
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Owner occupier and investor Lines of Credit will increase by 0.10 per cent, per annum.
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Anthony Rose said the decisions "are always difficult" and BOQ balances the needs of our borrowers and depositors when making changes.
Elsewhere rates in some cases are up by 40 basis points.
It comes as the lenders suggest they can no longer absorb the impact of rising funding costs on net interest margins.
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IMB, the nation's third largest building society, has raised standard variable interest rates by 8 basis points for new and existing home loans.
AMP Bank has hiked rates on some investment products by up to 40 basis points. 
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Greater Bank and Homestar Finance are also raising some rates by 10 basis points.
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j.ballantyne1990-6AQqhLzZaK

Bank of Queensland raise IO investor rates

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The Bank of Queensland has become the first bank to officially hike home loan rates out of cycle in 2019.
The decision affects a range of BOQ variable rate loans including their Economy Variable Home Loan which is increasing by 0.11 per cent for both new and existing customers.
Other loans are increasing by up to 0.18 per cent, effective from January 11th.
That increases the price of monthly repayments on a $500,000 dollar loan by $32 and over the life of the loan it will cost an additional $11,369
RateCity.com.au research director Sally Tindall said the bank has cited cost of funding pressures and intense competition in term deposits as the reasons for the hike.
“These cost of funding pressures are affecting most banks so it’s likely we’ll see other lenders follow suit in 2019,” she said"
“A lot of household budgets are feeling the pinch after Christmas. While most families will be able to absorb this hike, some may struggle to come up with the extra cash,” she concluded.
Bank of Queensland is the ninth largest mortgage lender in Australia, according to APRA.
<img src="https://www.urban.com.au/images/2019/1/8/BOQ%20hike.JPG" alt="">
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