Same old playbook: Up front fees and commissions for lenders and realtors come at a heavy cost for everything else. Note to Canada and other ‘hot property’ markets, the same destructive behaviors and policies have been driving our realty prices up and financial strength down. We know how this ends, thanks to numerous historical precedents, its always just a matter of when. See A focus on responsible lending will uncover huge problems for the banks their customers, the economy and ultimately taxpayers. Will we let the banks off with their crimes and profits this time too?
The banks’ Achilles heel — irresponsible lending — is shaping up as a major threat to the banks and financial system, depending on the outcome of the banking royal commission and a low-profile battle currently being waged in courts.
“Irresponsible lending is endemic in Australia,” Digital Finance Analytics director Martin North said.
“More than 900,000 households are already in mortgage stress.
Here is a direct video link.
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