Ok instead of shocked I should have said I disagree! I think the...

Ok instead of shocked I should have said I disagree! I think the part which is shocking is that even though the responsible lending laws have been around 10 years, they’ve only really been policed since the royal commission. The ink has barely dried on the recommendations and now they’re winding this back.

I just don’t see how this can play out well, at least 50% of people significantly understate their expenses when applying based on their transaction history and HEM basically saves them from themselves. With that safety barrier gone there’s a lot of potential for damage. Banks will still have to have some kind of baseline, we can’t have people applying for $1 million loans claiming they only spend $1000 a month so they can scrape through and then default after 8 months.