The ACCC appears to have overestimated the strength of Australian mortgage competition when announcing last year that it would not oppose the Westpac / St George and Commonwealth Bank / Bankwest mergers.

The ACCC’s Public Competition Assessment in August 2008 calculated the merged Westpac / St George entity would at that point have had a mortgage market share of 21%. At the end of September 2009 the combined Westpac / St George entity has 23.4% mortgage market share, according to the forthcoming CoreData-brandmanagement Australian Mortgage Report.

In forming its view last year the ACCC noted a number of regional banks were expanding their presence in other states, citing Bankwest, Bank of Queensland, Suncorp and Bendigo Bank.
Full Story

The ACCC has commenced proceedings against Refund Home Loans and its founder and Managing Director, Wayne Ormond.

It’s been alleged that Refund Home Loans and Wayne Ormond have made false and misleading representations that are in breach of the Trade Practices Act.  The statements were regarding having a special relationship with the ACCC.

The ACCC news release states that Mr Ormond made statements over a number of years to many franchisees to the effect that the ACCC had advised Refund Home Loans about their conduct towards the franchisees and had approved action taken by Refund Home Loans in respect of both current and former franchisees with whom it was in dispute.

RP Data CEO Graham Mirabito today commented on the announcement by the ACCC where they are proposing that heavy fines be imposed on real estate agents and vendors who consciously mislead buyers

Supporting the move by the ACCC, Mr Mirabito said that RP Data (rpdata.com) has long been an advocate of transparency within the real estate industry.

“RP Data (rpdata.com) fully supports the proposal by the ACCC to provide a formalized and national level of regulation for the real estate industry. There is currently a great deal of variation between the states with regards to the level of transparency and diligence a real estate agent or vendor must conform to when selling a property.”

“A national set of rules will provide standardization across the industry which will assist in boosting the credibility and consistency of the real estate industry as a whole.”
Full Story

Homeowners could be slapped with heavy fines if they underquote their property’s expected selling price in a shake-up of real estate law.

Unsuccessful homebuyers who are tricked will be able to seek pre-purchase costs back from greedy vendors and real estate agents under the changes.

Fairfax and News Ltd newspapers say Australian Competition and Consumer Commission boss Graeme Samuel has warned cheats they will be vigorously pursued under new laws that come into effect next January.
Full Story

ACCC head, Graeme Samuel, has come out swinging on bank competition in the last few days. He is concerned that banking competition may be barely workable with reports that non-bank institutions are hardly active in lending markets and, indeed, of new mortgages, just two banks, Commonwealth and Westpac, have captured 85% of that business.

CoreEconomics

View Article

The Australian Competition and Consumer Commission proposes to grant conditional authorisation to the Mortgage and Finance Association of Australia to enable it to continue to use its disciplinary rules, ACCC Chairman, Mr Graeme Samuel, said today.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Full Story

Claims by the banks that higher funding costs have prevented them from passing on recent interest rates cuts have been shot down by analysts who point to burgeoning margins on margins and corporate loans.

The major banks came under heavy criticism from the federal government last week after they passed on less than half the Reserve Bank of Australia’s (RBA) quarter of a percentage point cut in interest rates.

National Australia Bank (NAB) passed on no reduction at all. Like the other banks, NAB cited higher wholesale funding costs for its decision.
Full Story

Leading direct lender MyRate.com.au is fighting for the rights of Australians borrowers against a stifling deal struck between GE Capital and Aussie Home Loans.

GE Money Home Lending Australia, which is exiting the mortgage market, said it would waive the deferred administration fee - the exit fee - only for those home loan borrowers wishing to refinance their home loans though Aussie.

In a complaint lodged to the ACCC Thursday morning, MyRate.com.au Managing Director Kevin Sherman disputed the arrangement, arguing that by keeping its interest rates high, GE Money are effectively encouraging their borrowers to refinance elsewhere however they are limiting customer choice and stifling healthy market competition.
Full Story

Australia’s competition watchdog has warned the big four banks that future mergers and acquisitions will be analysed with a fine tooth comb after it approved Commonwealth Bank of Australia’s (CBA) $2.1 billion acquisition of BankWest and HBOS fund manager St Andrew’s Australia.

The Australian Competition and Consumer Commission (ACCC) pointed to difficulties faced by BankWest’s and St Andrew’s UK parent, HBOS plc, resulting from the credit crisis.

The impact had diminished BankWest’s competitive position in Australia to the extent that CBA’s acquisition was unlikely to substantially lesson market competition.
Full Story

Peter White, President - FBAA, discusses the recent ACCC’s decision on third-line forcing practices, the FBAA’s campaign on Anti Money Laundering and gives his advice to mortgage introducers for continued growth.