REP 152 Helping home borrowers in financial hardship
Released 7 May 2009.
This report examines the processes and procedures lenders and brokers have in place to deal with borrowers experiencing difficulties in meeting the repayments on their mortgage.
In some cases, borrowers may benefit from temporary relief or assistance with their loan on the grounds of financial hardship. We looked at how financial hardship assistance is promoted, identified and determined by different lenders and brokers. Our findings show that practices are inconsistent and vary greatly among industry players.
This report sets out examples of good and poor practices. It aims to provide guidance to industry on how to improve practices when dealing with borrowers in these circumstances.