ANZ CEO Shayne Elliott today at the Royal Commission:
So we accept that it is conservative, in that case the level of expenditure is relatively low … I think it is an agreed area for improvement.
This is part of a software called Triex that we developed that allows us to analyze ANZ customer actual expenses and it sounds easy, but what it does, can identify which expenses from your account, which may be utility bills, which might be discretionary expenses, and so on. . So this is a tool that will enable us to do a better job by looking at someone's actual historical expenditure through ANZ accounts. "
If we succeed in launching our system, our use of HEM should be the basis for about a third of our total applications.
We have made a commitment to our regulators that, from recollection, at the end of our next financial year. So later on 2019 calendar. That's my memory.
Elliott also stressed that broker channels are higher serial HEM abusers which might have implications for policy recommendations.
As said earlier, CBA uses HEM on 75% of loans and withdraws to 40-50%. So ANZ is becoming more conservative. IBC ping because having half of the improper loans distributed using HEM.
This is a credit crisis in action, with something like a quarter of loans that used to be rubber stamps no longer available or smaller because income and expenses are properly valued.
Namely, above just-reset interest, macroprudential 3.0, interest rate increases outside the cycle on funding costs, negative gearing reforms, escaping from Chinese capital and headwinds the aging cycle.
Besides that, buy property!