MIAA Annual Conference

MIAA Annual Conference
28th May 1998

The Mortgage Industry Association of Australia started its annual national convention in Sydney with the theme of moving towards 2000.

The opening day speakers included Kathryn Greiner, Sydney City Councillor, Political Commentator Paul Lyneham and Aussie Home Loans Managing Director John Symond and a number of industry representatives.

Issues raised ranged from;
Kathryn Greiner urging the industry to put pressure on inner city developers to ensure that the quality of their projects were of the highest quality and making sure that these developments do not become tomorrows slums.

John Symond pointing out that now that the price differential Aussie and other non bank lenders previously enjoyed over the banks has now vanished and that the key to ongoing survival was to focus on high levels of customer service and look to strategic alliances with experts in their particular field. Mr Symond urged industry participants to look at the US market where 75% of residential lenders was provided by non bank lenders. However, of these non bank lenders they either sourced or managed loans, not both which is something the Australian industry will be moving to in order to achieve scales of economy and satisfactory levels of profitability.

Paul Lyneham believes that the government will release its tax reform package in late June and that we will move into election mode straight after. He believes the government will argue that their policies will ensure a safe, stable and secure economic environment that will provide the country with a continuance of low interest rates, low inflation and steady growth despite a current account deficit of between 5% and 6% of GDP for 1998/99.

Other issues raised were the possibilities of a securitised loan product that did not require formal valuations where the security being offered was the subject of a purchase and the establishment of a formal dispute resolution process for the mortgage industry and their customers.