Mortgage Choice (MOC) Time to buy ?, page-137

if you banned LMI banks would just stop lending to anyone without a 20%+ deposit, which probably wouldn't be a bad thing.

It's amazing how many people with mortgages who pay LMI don't realise it's for the banks protection not their own. If they default on their loans & there is still a debt outstanding after liquidation the insurer will come after them for the shortfall that they've paid out to the banks.

There are a lot of things that should be changed.
Banning  mortgages from SMSF
Banning IO mortgages for occupier loans unless a specific Investmemt vehicle is setup to pay the capital  balance at the end of term.
Minimum of 20% deposits on all occupier mortgages.
Lenders making their lending criteria clear & transparent on their websites ( who they won't lend too, what income levels are required, employment type history etc) so applicants know before they apply whether they may qualify or not.
Removing the ability to draw down equity from occupier mortgages to fund investmemt mortgage deposits.
Removing early settlement fees or exit fees when transferring to new lender.