Ann: Update - Notification of buy-back - HLI, page-7

The table at the end of this article clearly steps out the default management process from missed payment > arrears > default > possession > asset sale > possible LMI claim. With strong employment it makes sense claims frequency is lower and with rising house prices why the claims are low due to cures / 'property sold no claim'. Table included below for convenience (other data available via the link below).
https://www.mpamag.com/au/mortgage-industry/guides/mortgage-delinquency-rates-australia-a-state-by-state-comparison/486435#:~:text=S%26P's%20February%202024%20performance%20index,country's%20RMBS%20sector%20since%201996.

I agree wit@W534220 comments on other threads re: management being conservative about the return of capital and about 'liabilities' on the books that aren't liabilities.

I changed my sentiment to 'none' after a few events that made me feel a little blindsided. For example, the announcement of 45 cents divvy 33% franked was unexpected given many of us on here had done the math re: possible divvy of anywhere from 65-90cents (from memory). Following that were the Director notices where they seemed to have uncanny timing in selling around $4.20 just before the drop where some of us topped us again.

While I'm not saying that management are doing anything dodgy, I have to admit I have lost the ability to explain management's approach to running the business. So between that and a nearly non-existent buyback in the context of slightly negative claims (near zero) in 1Q24 and a PCA of 1.86x, I am struggling between what my brain says in terms of the what @W534220 has constantly rightly reminded us about 'liabilities', management being conservative etc and the implications of that for the inherent value of HLI versus feeling like the company is less transparent than ever. So far, I'm erring on the side of letting the math speak for itself every 6 months.

Keen to hear others thoughts about where they think managed is headed?

Mortgage delinquency rates Australia – how the default management process goes

	Day 1	Day 30 to 60	Day 90
1	The lender contacts the borrower about the missed mortgage repayment. The lender and the borrower make payment arrangements.	The lender continues to contact the borrower. The lender and the borrower discuss payment alternatives. These can include hardship arrangements.	The lender starts the mortgage possession process, consisting of: Legal action The lender can issue a statutory notice or serve a statement of claim for possession and judgement of debt. The lender sends an agent to inspect the property. Possession of property The agent takes possession of the property. The lender gets an updated valuation of the property. The lender prepares the property for sale. The lender uses the proceeds from the sale to cover any fees or expenses associated with taking possession and the sale of the property, and repayment of outstanding principal and interest on the loan. Mortgage insurance The lender files a claim on the insured loan for the outstanding amount not covered by the proceeds from the sale of the property.

Mortgage arrears vs mortgage default: what’s the difference?

Mortgage arrears and mortgage default are often confused with each other, but there’s an important distinction between these industry terms.

Having a mortgage in arrears means that the borrower has fallen behind in payments. In Australia, banks and other lenders often offer a one- to two-week grace period for mortgage holders to settle a missed payment. If the loan is paid during this timeframe, it is still considered on time. If not, the borrower will be considered behind on their payments and classed by the lender as being in arrears.

After 60 days of being in arrears, the borrower can expect to receive a notice of default from the lender. This gives the mortgage holder 30 days to catch up with their repayments. Lenders are restricted by the law from offering a shorter notice period.

Lenders, however, can send a notice of default immediately after a missed payment, although they rarely do. Most lenders wait until the 90-day mark before acting.